The Best Payment Apps Switching To Contactless Payments

Best For Paying In-Store: Google Pay (Formerly Android Pay)

Apple Pay may have many users, but so does Google. Even back in 2011, Google already had a product called Google Wallet that could be used for person-to-person money transfers via gmail and for making NFC payments at a store. After the launch of Apple Pay, Google launched Android Pay as a direct competitor and rebranded Google Wallet as a P2P app instead. Google merged the two in 2018 to form the mobile wallet now called Google Pay.

Google Pay is available on both Android and iOS. As is fairly standard for a full-featured mobile wallet, you can store credit, debit, prepaid, cash, and loyalty cards in Google Pay and use the cards for purchases through a browser, on a phone, or inside an app. You can do person-to-person money transfers (or make requests) from the app by using a phone number or email. You can even link your PayPal account to Google Pay for an additional layer of convenience. Your card information is securely stored in the cloud, and on the device the information is protected by card tokenization, encryption, and password or biometrics.

When compared to Apple Pay, Google Pay is no slouch. The two apps basically have about the same core features. Given that Andriod has a worldwide maketshare of somewhat over 85% to Apple’s roughly 13% and given Google Pay is available on iOS as well, the odds of you seeing a Google Pay user is at least as good as seeing an Apple Pay user. Therefore, it would be good to be prepared to take Google Pay at your store as well. Fortunately, you need the same hardware for Google Pay as you need for Apple Pay–an NFC-enabled reader or terminal. Theoretically, this is all you need to take Google Pay, but we’ve had some reports of stores not being able to process Google Pay but can take Apple Pay. If this happens, contact your payment card processor to see if there are additional software requirements you might need.

Below is a summary of major Google Pay features.

• Compatible With: Android, iOS devicesCompatible With: Android, iOS devices
• In-Store Payments: Yes
• eCommerce & In-App Payments: Yes
• P2P Payments: Yes
• Debit Card (Digital or Physical): No
• Noteworthy Features: Can link PayPal account
• Cost To Merchants: Standard credit card processing rates
• Requirements for Merchants to Accept: NFC-compatible credit card reader/terminal for in-store purchases, developer for eCommerce
  

Best For Paying In-Store: Samsung Pay

Rounding out our Best For Paying In-Stores picks is Samsung Pay. Samsung Pay, as its name suggests, is available only on Samsung phones. The app was launched in 2015 and is now available in 26 countries.

Samsung Pay can store credit, debit, prepaid/cash, and loyalty/membership cards. It also connects to PayPal, just like Google Pay. Like the other two services, cards stored in Samsung Pay are protected by several layers of security, from card tokenization to storage encryption to password/biometric access protection. You can use Samsung Pay for in-store, online, and in-app purchases, but unlike our other two Best For In-Store picks, Samsung Pay cannot do person-to-person transfers.

Samsung Pay, however, does have an advantage over its competitor apps–it uses a proprietary technology called “magnetic secure transmission” or MST, and this technology allows the smartphone to mimic a magnetic stripe card swipe to send payment information to card readers that cannot read NFC signals. As a merchant, Samsung Pay can save you a little bit of money–or at least, it won’t force you to spend more money to upgrade to an NFC reader just to take wallet payments. The MST technology works with most magnetic stripe readers, except those used in gas stations where the card is inserted into a slot and then pulled.

If you have a Samsung phone, then you know that Samsung nags its users to try Samsung Pay. This is why there may be a large number of Samsung Pay users in the wild. Just like Apple Pay and Google Pay, if you have an NFC-enabled reader or terminal–or even if you don’t–you should be able to accept Samsung Pay without additional work. The user base and the MST technology are why we add Samsung Pay to our Best For In-Store wallet apps.

• Compatible With: Samsung devices
• In-Store Payments: Yes
• eCommerce & In-App Payments: Yes
• P2P Payments: No
• Debit Card (Digital or Physical): No
• Noteworthy Features: MST technology, connects to PayPal
• Cost To Merchants: Standard credit card processing rates
• Requirements for Merchants to Accept: Magstripe or NFC-compatible credit card reader/terminal for in-store purchases, developer for eCommerce

Best For Paying Online: PayPal

While all our top pay-in-store wallets can also be used to pay online, when it comes to online payments, PayPal is still king. Back when PayPal got its start, it specialized in P2P payments, and that payment method was adopted by merchants who did not (or maybe could not) qualify for a merchant account for taking credit cards. It was a safe way to pay and receive payment from strangers, and a person can sign up for an account easily. PayPal also had little to no competition, so they signed up a lot of users.

Because of PayPal’s enormous user base (286+ million active user accounts at the time of writing, by PayPal’s count), they are still the best mobile wallet for online payments. (They’re also available for payment processing for physical locations.) A user funds a PayPal account by linking a credit card or bank account to the account. If the user receives money into the PayPal account, the money can be kept there indefinitely, transferred out to a bank account, or be used through the PayPal debit Mastercard.

PayPal has both a web dashboard and a mobile app compatible with iOS and Android devices. It offers its users a fast checkout option called One Touch, which allows for automatic log in and auto-fill of billing information. PayPal can also be linked to Google Pay and Samsung Pay to automatically draw from PayPal for purchases made through these third party wallets.

If you have an online-only business, you should at least take PayPal Payments in addition to the other credit cards. Many consumers prefer to use PayPal over other types of payments because of online security, so you might be missing out on sales if you don’t have PayPal as a payment choice for your shoppers. As a business, you can set up a business account separate from your personal PayPal account, so the accounting can be kept separately.

Here’s a quick summary of PayPal.

• Compatible With: Web, iOS, Android
• In-Store Payments: Yes (via Google Pay)
• eCommerce & In-App Payments: Yes
• P2P Payments: Yes
• Debit Card (Digital or Physical): Yes
• Noteworthy Features: Large user base
• Cost To Merchants: 2.9% + $0.30 per transaction
• Requirements for Merchants to Accept: PayPal Business Account, developer for eCommerce/In-App

Best for Requesting Payment: Square Cash

If you run a small services business, you might be able to use Square’s Cash app to get paid. Square started the Cash app back in 2015. The app allows individuals, organizations, and businesses to send and request cash via email or by using a unique identifier called a cashtag.

The Cash app is compatible with both iOS and Android devices. Users also get a personalized website at www.cash.me/$URL, where users can visit and input their payment information to send a user money.

Users can fund the Cash account by linking a bank account (for free) or through a credit or debit card (for a fee). To take money out of this account, simply transfer the money to a bank account or to a special debit card called the Cash Card. The Cash Card can be used like any debit card, including making ATM withdrawals and even be added to Apple Pay or Google Pay.

Users of the Cash app can send money to or request money from other users. While Cash app’s competitor apps like Venmo and Zelle also allow their users to send payment requests, the Cash app is the only one that uses the cashtag. The cashtag is a word preceded by the $ symbol, can be used in place of a phone number or email, and uniquely identifies only one Cash app user.

Through the Cash app, a business can request payment by sending the request to the customer’s cashtag, phone number (via text), or email. There is no reminder option, however, so if a customer forgets to pay, you, the business owner, will have to send reminders until you are paid.

The Cash app is fairly popular with the younger crowd. If you operate a one-person business with a younger customer base, the Cash app might be right for you.

• Compatible With: Web, iOS, Android
• In-Store Payments: Yes (debit card)
• eCommerce & In-App Payments: Yes
• P2P Payments: Yes
• Debit Card (Digital or Physical): Yes
• Noteworthy Features: Can use Cashtag to send or receive money
• Cost To Merchants: No charge if paid directly through Cash app; standard Mastercard debit card rates if linked through Apple Pay or Google Pay
• Requirements for Merchants to Accept: Square Cash account dedicated to business use; NFC-compatible reader/terminal for in-store purchases through Apple Pay or Google Pay; developer for eCommerce through Apple Pay or Google Pay

Best For Digital Purchases: Venmo

The first Venmo app was released in 2009. Since then, the app has grown to be one of the most popular mobile wallets, especially for younger users. It is known for the social networking element to the app, where you can broadcast your latest purchases to your family and friends for discussion.  The app is often used to split bills among a group of friends, or for sending money to family members. In 2012, the company was bought by Braintree, and a year later, Braintree was bought by PayPal. So, today, Venmo is a subsidiary of PayPal.

When you sign up with Venmo, you open a Venmo account that can be funded by linking to a bank account or to a credit card. This Venmo account is where money is pulled from or added to when money is transferred between Venmo account holders. You can take money out of your Venmo account by transferring it to your bank account or by using the Venmo Card, which is a Mastercard debit card linked to your Venmo account.

For online purchases directly through Venmo, there are two basic avenues. On some websites (powered by Braintree), a dedicated Pay with Venmo button can be integrated directly into the checkout. With other sites, you might see only a PayPal button. Once you hit that button and are taken to the payment screen, if the merchant takes Venmo and if you are paying from your smartphone, you will see a Pay with Venmo button along with another Pay with PayPal button. Select Pay with Venmo and you can pay that way.

Alternatively, because the Venmo card is a regular Mastercard debit card, you can link the card to Apple Pay or Google Pay and make purchases wherever Mastercard debit cards are accepted.

We think Venmo is best for digital purchases because of the app’s social networking platform. Once the Venmo card is linked to Apple Pay or Google Pay, an entire world of music, books, and other in-app purchases open up to Venmo users. Given Venmo’s user age group (i.e. fairly young) and the social nature of the app, it seems fairly easy for a good song, book, game, or similar to become popular through word of mouth advertising. This is why we think Venmo’s social network features make it a perfect venue for selling digital goods.

• Compatible With: Web, iOS, Android
• In-Store Payments: Yes (debit card)
• eCommerce & In-App Payments: Yes
• P2P Payments: Yes
• Debit Card (Digital or Physical): Yes
• Noteworthy Features: Heavy social networking element; Venmo Mastercard debit card is usable by tapping directly on an NFC-enabled reader/terminal
• Cost To Merchants: For eCommerce, 2.9% + $0.30 per transaction through Braintree or PayPal but custom pricing available for high volume merchants; Standard Mastercard debit card rates for in-store purchases
• Requirements for Merchants to Accept: Venmo and PayPal or Braintree business accounts, developer for integrating code to webstore/app; NFC-enabled reader/terminal for in-store debit charges

Honorable Mentions

There are a lot of good mobile payment apps out there, and while we highlighted some of the best, we think there are a few more worth brief mentions because you might hear about them in the future.

Fitbit Pay & GarminPay

Fitbit and Garmin Pay are all smartwatch based digital wallets. They’re quite similar to each other, and they can both be used with an NFC-enabled reader or terminal.

Fitbit Pay

Fitbit is best known as a health tracking device, and it is gradually evolving into a smartwatch. As such, the newest Fitbit trackers come with an embedded NFC chip and can be used as a mobile wallet. The chip on the Fitbit can store up to six credit or debit cards. To set up the wallet, you have to enter all the information from the Fitbit app on your smartphone. Only a token for each card is saved on the watch, and the wallet on the watch can only be accessed after entering a passcode or PIN.

To pay with a Fitbit watch, simply tap the watch on an NFC reader or terminal, and the card is processed through the normal channels.

Garmin Pay

Garmin Pay is available on select Garmin smartwatches. Like the Fitbit trackers, the Garmin wallet on the smartwatch must also be set up through an app installed on a smartphone. The credit and debit cards on the watch are all tokenized, and the watch is password protected. Just like the Fitbit tracker, an NFC chip is built into the Garmin watch, so users can tap the watch on any NFC reader to send credit or debit card information for processing.

Xoom

Xoom is another mobile wallet, but it is one with a fairly specialized niche–that of international money transfers. Xoom was founded in 2001 and was acquired by PayPal in 2015.

Xoom has many banking partners around the world, and it helps users transfer money using exiting international money transfer networks already used by banks. Money transfers through Xoom typically take several days. The recipient can pick up the money in person at designated banks, have the money deposited into specific accounts, or even have it delivered by a person. Xoom also allows its users to pay through the Xoom app certain out-of-the-country bills like cable or utility bills or add cell phone minutes for phones outside the US.

As a merchant, you probably won’t see Xoom used by your customers very often. However, since Xoom has a rather large transfer limit–up to $50k per day and $100k every six months–you might be able to pay some of your international suppliers this way.

Zelle

Zelle is a money transfer service owned by several large banks. Zelle transfers money from one user’s bank account directly into another user’s bank account by using the recipient’s email or cell phone number. Most banks in the US are participants of Zelle and allow any account holder to transfer money for free. For those who bank at non-participating banks, Zelle can transfer money through a debit card issued by the non-participating bank.

Money transfer through Zelle can take just minutes. You can request money or split a bill, just like you can with Venmo. Zelle lacks the social networking element of Venmo, however. There are daily and monthly transfer limits with Zelle, and those limits are set by individual banks, so they vary. Nevertheless, the transfer limits are typically higher than Venmo’s, making Zelle a better choice than Venmo for transferring larger amounts of money.

Some, but not all, banks allow small business owners to set up Zelle for their business accounts. You can request payments from customers/clients through Zelle, but there are no automatic reminders if your customers do not pay right away.

Final Thoughts: Are Mobile Payments Right For Your Business?

In today’s increasingly cashless society, consumers are more and more likely to use mobile wallets to pay for goods and services. Some of these apps store payment card information and allow consumers to pay with the payment cards either online or in person. Others are mostly apps that keep electronic cash funded with a credit or debit card or bank account, and the electronic cash can be used to pay for goods or service or transferred between friends or family. Yet others are optimized for transferring directly between bank accounts.

It is very clear that consumer behavior is rapidly changing as a result of these mobile payment apps. As a small business owner, you can take advantage of these changes. If you own a physical location, you can accommodate these younger, tech-savvy customers by having an NFC-capable reader so you can take payment from a smartphone or a smartwatch. If you have an online store, you can hire a developer to add a “pay with” buttons to your store. With yet other wallets–mostly those for sending money to friends and family–you can send payment requests to your customers for payment.

As you can see, you can integrate many types of mobile payments into your business. Of course, not all payment apps are suitable for every business. For instance, if you own a restaurant, you wouldn’t allow the customer to walk out the door right after you send a Cash app payment request, but you can allow your patrons to tap their phone on your NFC terminal to pay for the meal.

How many types of mobile payments have you integrated into your business? Let us know of your experience, good or bad. Have questions? Leave us a comment and we’ll get back to you!