Punched tape or paper tape is a largely obsolete form of data storage, consisting of a long strip of paper in which holes are punched to store data. It was widely used during much of the twentieth century for teleprinter communication, and later as a storage medium for minicomputers and CNC machine tools.

The earliest forms of punched tape come from weaving looms and embroidery, where cards with simple instructions about a machine's intended movements were first fed individually as instructions, then controlled by instruction cards, and later were fed as a string of connected cards. (See Jacquard loom).

This led to the concept of communicating data not as a stream of individual cards, but one "continuous card", or a tape. Many professional embroidery operations still refer to those individuals who create the designs and machine patterns as "punchers", even though punched cards and paper tape were eventually phased out, after many years of use, in the 1990s.

In 1846 Alexander Bain used punched tape to send telegrams.

When the first minicomputers were being released, most manufacturers turned to the existing mass-produced ASCII teletypewriters (primarily the ASR33) as a low-cost solution for keyboard input and printer output. As a side effect punched tape became a popular medium for low cost storage, and it was common to find a selection of tapes containing useful programs in most minicomputer installations. Faster, optical readers were also common.

Paper tape was the basis of the Vernam cipher, invented in 1917. During the last third of the 20th century, the U.S. National Security Agency used punched paper tape to distribute cryptographic keys. The 8-level paper tapes were distributed under strict accounting controls and were read by a fill device, such as the hand held KOI-18, that was temporarily connected to each security device that needed new keys. NSA has been trying to replace this method with a more secure electronic key management system (EKMS), but paper tape is apparently still being employed.

The two biggest problems with paper tape were

Reliability. It was common practice to follow each mechanical copying of a tape with a manual hole by hole comparison.

Rewinding the tape was difficult and prone to problems. Great care was needed to avoid tearing the tape. Some systems used fanfold paper tape rather than rolled paper tape. In these systems, no rewinding was necessary nor were any fancy supply reel, takeup reel, or tension arm mechanisms required; the tape merely fed from the supply tank through the reader to the takeup tank, refolding itself back into the exact same form as when it was fed into the reader.