What are mobile payments and how do they work?

While using a physical card is already convenient, mobile payments can make paying for goods and services even easier. Here’s what you need to know about this payment method.

Key takeaways

• Mobile payments let you make purchases in stores using an app on an internet-enabled mobile device such as a phone or tablet.

• Apple Pay®, Google Pay™, PayPal and Samsung Pay® are all mobile payment apps that let you make purchases without your physical card in stores or online.

• If you’re a Capital One cardholder, you can use the Capital One Mobile app to easily link your card to a digital wallet.

Mobile payments are payments made from an internet-enabled mobile device like a smartphone or tablet. This type of payment lets you make purchases online or in stores without using your physical debit or credit card. They can also help you send money to friends and family through P2P payment services like Zelle®.

Mobile payments work similarly to traditional payments. You’re still providing the store or merchant with your debit or credit card information, just in a different form. 

Instead of paying with the card itself, you’re using a payment app that has your card information stored in it. The app sends your payment information to the merchant, which then processes the payment and completes the transaction. 

To make a mobile payment in a store, you’ll first need to download a digital wallet to your device. Digital wallets use near-field communication (NFC) technology to send payment information from your device to a payment reader. You can pay with your phone in stores anywhere you see the contactless symbol. To initiate the purchase, simply hold your device up to the card reader and initiate the payment on your device.

Mobile payments can be a convenient way to make payments and purchases. Here are a few of the benefits of using this payment method.

• They’re fast. Mobile payments are often faster than using your physical debit or credit card, which means you’ll be in and out of the store in no time.

• They’re convenient. With mobile payments, you’re able to make purchases even if you don’t have your physical card on hand. 

• They’re secure. Mobile payments use tokenization to encrypt your personal information, which may help protect your actual card number from being compromised.

• You’ll still earn rewards or cash back. If you have a Capital One rewards or cash-back card, you’ll earn the same rewards or cash back you’d receive by making purchases with your physical card.

Using mobile payments can be convenient, but it’s not for everyone. If you’re the type of person who frequently misplaces their cards or leaves their wallet at home but remembers their phone, mobile payments could be a good fit. 

The key lies in making sure you’re using your digital wallet safely. Try to keep your sign-in information secure and consider adding an extra layer of protection to your digital wallet by enabling two-factor authentication.

Mobile payments let you use your smartphone, tablet or smartwatch to pay with your card even if you don’t have your physical card on hand. And they’re easy to set up, especially if you have a Capital One card. Some cards can even be added directly from the Capital One Mobile app, so find your digital wallet and follow the steps to start taking advantage of the convenience that mobile payments can offer.