Best mobile payment services in 2023
Digital wallets, or mobile payments, are becoming more widely used and are estimated to 4.4 billion users by 2025, according to Juniper Research. It is imperative for small businesses to adopt the technology needed to make these payments. Fortunately, the most popular mobile payment service also happens to be the best.
After researching all the options and comparing market shares, pros and cons, we chose Apple Pay as the best mobile payment service, but we encourage you to read more about our other top picks. The more payment options you offer your customers, the more likely you are to close a sale.
Why You Should Trust This Review
About Digital.com Expert Reviewer Amy Nichol Smith:
I have worked as a journalist and technical professional for over 20 years. When I joined the review website, I went from being a feature reporter and editor to a technical writer, testing everything from encryption software to robot vacuums.
Ultimately, I chose software as my area of expertise and worked for many large publishers to cover a wide range of programs for retailers, marketers, and small businesses of all kinds. I have contributed my thoughts on topics such as GPS (global positioning system) and payment processing technology to various publications, including: forbes, LA Times, Tom’s guideWhen Reader’s Digest.
How we rated the best mobile payment services
Testing mobile payment services comes down primarily to ease of use. The other way I rated the best mobile payment apps was through research. We compared security features, transaction limits, and fees, if any. It’s also important to consider how widely accepted each mobile wallet option is, the market share of a particular device (and the payment app itself), and where in-person and online payments are possible.
ease of use
Mobile payment apps should not be difficult to use. After all, they should make paying for goods and services more efficient. We tested the installation of each app to make sure it was easy to implement (yes!).
In fact, I regularly use 3 of the 5 listed apps.
Payment for goods should also be simple. You should be able to make contactless payments with these apps using your mobile phone, other devices, and online.
For merchants, it should be as easy as offering mobile payment options. Most payment processors have NFC card readers so you can make contactless payments. That said, not all payment processors accept all mobile payments.
safety
Security is perhaps the most important factor in choosing which mobile payments to accept and which apps to use. Once upon a time, credit card signatures were considered secure. Then the PIN (Personal Identification Number) was the pinnacle of security. Now, I’m looking for payment options that offer tokenization or biometric security that only allow transactions when using fingerprints or other physical characteristics.
Data encryption also helps, so payment information is safe as it travels from the app to the merchant to the payment processor. It converts a customer’s her PAN (Primary Account Number) into a string of scrambled numbers that are unique each time, so the code cannot be broken to steal payment information.
Fees and restrictions
As a merchant, the cost of doing business comes from transaction fees. Fortunately, there are currently no additional fees associated with accepting mobile payments.
Most mobile payment apps bill your bank directly for completing transactions. However, this cost may be passed on to you through the percentage you pay.
Fees associated with payments made through mobile payment apps are generally not shown. In some cases, you may be required to pay a fee, such as an expedited cash transfer from PayPal to your bank account. Otherwise, you usually have to wait 1-3 days.
Sending cash using a credit card may also incur fees similar to transaction fees paid by merchants.
Most mobile payment services limit the amount that can be transferred between peers or from customers to merchants. These limits can be set per transaction, per week, or per day.
For example, Apple Pay lets you spend up to $10,000 in a single transaction, but only up to $10,000 in a week. Verified PayPal accounts vary. Some are limited to $10,000 or $60,000, while others are unlimited.
Device compatibility
A frustrating limitation of mobile payment apps is that they only work with one type of operating system (Apple Pay and Samsung). There is one caveat to this type of monopoly, which is detailed below. Some of the best mobile payment services work through apps made for the most popular operating systems, so they work on any device.
market share
Whether you’re a merchant or a customer, it’s a good idea to consider which mobile payment services have the top market share. It deserves to be widely accepted and used. However, Google Pay is available on his Android and iOS devices, so it covers most smartphones in the US.
Of course, there are also outliers. Since Samsung has a large market share for smartphones globally, we recommend accepting Samsung Pay as a merchant, especially if you have a large number of overseas customers.
And then there’s PayPal and the Zelle app, commonly used to pay online or to peers. Accepting these payment methods can result in sales that you otherwise would have missed.