The best mobile payment apps offer a simple solution for making and sending payments using your smartphone. Mobile applications offering contactless payments have spread since the introduction of Near Field Communication (NFC), transforming individual smartphones into the equivalent of a payment card. However, just like contactless credit and debit cards, mobile payments have their limits, but they also have their fees, and sometimes these are not always so clear cut. Therefore, as mobile applications fulfill the promise of the digital wallet, they are changing and expanding the way we pay for things in everyday life. They excel at small transactions, avoiding having to carry cash around, and this can apply not just when shopping, but for everyday items as well. However, aside from contactless payments, mobile payment apps can also be great for sending money to people you know, like friends or family, or paying directly to merchants. As contactless payment platforms continue to develop, we'll help you choose the right mobile apps and NFC system that might work for you.
(Image credit: Apple)
1.ApplePay
iOS joins cashless
THE BEST DEALS OF THE DAY Reasons to buy
- March in iMessage + No application to download + More secure thanks to integrated 2FA
Reasons to Avoid -Only Apple Apple likes to make the complex simple and easy for everyone to do, and its mobile payment offering, Apple Pay, lives up to this philosophy. There is no app to download, it works on iPhones and can be used for online purchases on Macs. The user gives credit card information to their Apple account. Now, the iPhone is used to purchase through a contactless payment process in a retail establishment, and is considered more secure due to the fact that the user must verify their identity through the Touch ID sensor or Face ID. Users can also easily send money to each other through an iMessage, or simply by asking Siri, the digital assistant. When you receive the money, it goes into your Apple Pay Cash balance, which can then be transferred to your checking account. Apple Pay is supported at about half of the points of sale in the US, including the popular retailers of Starbucks, Walgreens, McDonald's and Best Buy, among many others.
(Image credit: Google)
2.Google Pay
Internet giant makes payments
THE BEST DEALS OF THE DAY Reasons to buy
- Extended acceptance + Preloaded on many Android phones
Reasons to Avoid -Requires a different app for person-to-person payments Android's mobile payment app is Google Pay, preloaded on Android smartphones. It's supported at many retailers, including Bloomingdale's, Chick-Fil-A, KFC, Nike, and Staples, as well as online services like Airbnb and DoorDash. It claims to be more secure than using a traditional credit card because the card number is not directly sent or protected by multi-layer security encryption. Google Pay accepts multiple credit cards from multiple essential merchants, including Chase, Citi, Discover, and American Express. However, that debit card from your small credit union with only 3 branches is unlikely to be on the accepted list. However, there is a way to directly connect your Paypal account, and all Visa cards are compatible with Visa Checkout. It is also confusing that in order to send money directly to another user (person-to-person transaction) you need a different application: Google Pay Send.
(Image credit: Samsung)
3.SamsungPay
A useful mobile payment app, limited to Samsung phones
THE BEST DEALS OF THE DAY Reasons to buy
- High degree of acceptance + Run on older magnetized strip terminals
Reasons to Avoid -Limited number of phones supported As well as its market-leading Galaxy phones now common among users, Samsung also offers its mobile payment app, Samsung Pay. It's compatible with many of Samsung's latest flagship smartphones, like the Galaxy S9, but not phones from other manufacturers, limiting wider adoption. The Samsung Pay app connects to credit and debit cards from many of the major banks. The great thing about Samsung Pay is its near universal acceptance, as merchants don't need to sign up for the program. Instead, Samsung Pay works with regular credit card readers, using newer EMV or NFC technology, or even older ones that use magnetic strip technology, keeping the phone next to it, with credit card information on the strip. The magnets are transmitted using a technology called Magnetized Secure Transmission (MST). With such flexibility to interact with the credit card reader, Samsung Pay can truly replace that pile of credit cards in your wallet with a phone app.
(Image credit: Paypal)
4 PayPal
A reputable paid dealer, but be careful about fees in certain cases
THE BEST DEALS OF THE DAY Reasons to buy
- Free person-to-person transfers + Existing account ecosystem
Reasons to Avoid -Not Widely Supported It seems like Paypal has been around for eons when it comes to online transactions, and with their mobile app they want to go beyond protecting sellers for online purchases. Today they want to make direct person-to-person payments and, in addition to this, access the retail payment space, although it is still more likely that you can pay online with this service than at the checkout. This is due to the lack of support for NFC with the Paypal app, and only a handful of retailers that jumped on the bandwagon to support Paypal have blocked sacrifices to date. One downside to Paypal has been the fees, which can be tricky and hard to understand because there are so many. At least to buy a product online or in person, Paypal doesn't charge a fee or person-to-person transfer (no seller protection), so you can send money to help split a check. However, while there is no fee to transfer from a linked checking account, with instant transfer from a linked debit card there is a transfer fee.
(Image credit: Venmo)
5. Venmo
Facebook's money transfer partner
THE BEST DEALS OF THE DAY Reasons to buy
- No cost for transactions without credit card + Connects to Fb contacts
Reasons to Avoid -Limited acceptance at retailers Venmo works via a mobile app on your smartphone, and signup can be done with your Facebook account if you prefer. Then link your checking account or your credit card. So, you can use the app to send or receive money from other Venmo users, or you can send money through a number or email because the app can access your Facebook or phone contacts; and if the recipient is not currently on Venmo, they will be prompted to create an account. Venmo is most useful for online payments, but some retailers support it, including Forever Twenty-One and Foot Locker. Summary of the best offers of the day