Best mobile payment apps of 2018

Mobile payment on a smartphone
Best mobile payment apps

1. Apple Pay

2. Google Pay

3. PayPal

4. Venmo

5. Samsung Pay

Read on for our detailed analysis of each app

Paying for something with cash is so last century, and who really wants to walk around with a load of change jangling in their pocket, threatening to leave some scratches on that glossy smartphone screen.

The concept of a ‘digital wallet’ has been promised for years, finally making the smartphone the most important item to have when leaving the house. However, up until recently, just about all transactions have been conducted via more traditional payment methods, namely credit and debit cards, as well as good old trusted hard currency. 

Mobile payment apps are changing the old fashioned way of paying for things, and streamlining the process. They excel at small transactions, avoiding the need for having cash, such as paying a babysitter, or splitting the tab at a restaurant when dining with friends. Mobile payments are also getting used at retail establishments, via contactless payment platforms and Near Field Communication (NFC). 

With the basics laid out, let’s help you choose the best ways to digitally send cash via some top-notch mobile payment apps. 

Apple Pay

1. Apple Pay

iOS meets cashless

Works in iMessage
No app to download
More secure as integrated 2FA
Apple only

Apple likes to make the complex simple, and easy for everyone to do, and their mobile payment offering, Apple Pay is true to that philosophy. There is no app to download, and it works on iPhones, and can be used for online purchases on Macs.

The user provides the credit card information to their Apple account. Then the iPhone is used for the purchase through a contactless payment method at a retail establishment, and it is considered more secure as the user has to verify identity via the Touch ID sensor or Face ID. Users can also easily send cash to each other via an iMessage, or by just asking Siri, the digital assistant. When you receive the cash, it goes to your Apple Pay Cash balance, which can be subsequently transferred to your bank account.  

Apple Pay is accepted at about half of US retail locations, including the popular retail establishments of Starbucks, Walgreens, McDonald’s and Best Buy among many others. When using a debit card there is no charge, and for a credit card there is a 3% fee. 

Google Pay

2. Google Pay

The internet giant does payments

Widespread acceptance
Preloaded on many Android phones
Needs different app for person-to-person payments

The Android mobile payment app is Google Pay which comes preloaded on Android smartphones. It is accepted at many retail stores, including Bloomingdale’s, Chick-Fil-A, KFC, Nike and Staples, and also online services such as Airbnb and DoorDash. It claims to be more secure than using a traditional credit card as the card number is not directly sent, and protected via multi-layer security encryption.

Google Pay supports a number of credit cards from a number of the major providers, such as Chase, Citi, Discover and American Express. However, that debit card from your tiny credit union with only three branches is not likely to be on the supported list. However, there is a way to directly connect your PayPal account, and all Visa cards are supported via Visa Checkout. Debit card payments are free, and credit payments incur a 2.9% fee. 

Also confusing is the fact that to be able to send money directly to another user (person-to-person transaction), you need a different app: Google Pay Send. 

PayPal

3. PayPal

A big-name payment provider, but watch the fees in some cases

Free person-to-person transfers
Existing ecosystem of accounts
Not widely accepted
Delays in transfers

It seems like PayPal has been around for eons when it comes to online transactions, and with their mobile app they want to move beyond just providing seller protection for eBay purchases.

These days, they want to deliver direct person-to-person payments, and furthermore, to get into the retail payment space, although you are still more likely to be able to pay online with this service than at the checkout counter. This is due to the lack of support for NFC with PayPal’s app, and only a handful of retailers jumping on the bandwagon to accept PayPal has hampered efforts to date.  

A downside of PayPal has been the fees, which can be complicated and difficult to understand as there are so many of them. At least for buying a product online or in-person, PayPal does not charge a fee, nor does it charge for a person-to-person transfer (without seller protection), so you can send some cash to help split a check.

However, while transferring from a linked bank account does not incur a charge, with an Instant Transfer from a linked debit card, there is a $0.25 (£0.19) charge per transfer (and by the way, it is not so instant, as it takes up to 30 minutes). 

Venmo

4. Venmo

The money transferring companion to Facebook

Free for transactions without credit card
Connects to Facebook contacts
Limited acceptance at retailers

Venmo works via a mobile app on your smartphone, and signing up can be done with your Facebook account, if you prefer. Next, you link your bank account or credit card. Then you can use the app to send or receive money from other Venmo users, or you can send money via a phone number or email as the app can access your Facebook or phone contacts; and if the recipient is not currently on Venmo they are prompted to create an account.  

Venmo is more useful for online payments, but a few retailers do accept it, including Forever 21 and Foot Locker. Receiving and sending money are free, but there is a 3% charge for use of a credit card. 

Samsung Pay

5. Samsung Pay

A useful mobile payment app, limited to Samsung phones

High degree of acceptance
Works at older magnetic strip terminals
Limited number of supported phones

Leveraging their market reach as the best selling producer of Android smartphones, the electronics giant brings us their mobile payment offering, Samsung Pay. It is supported on several of Samsung’s latest flagship smartphones, such as the Galaxy S9, but not on other manufacturer’s phones, limiting more widespread adoption. The Samsung Pay app connects to credit and debit cards from a number of major banks.

The good thing about Samsung Pay is the near universal acceptance as merchants do not need to opt into the program. Rather, Samsung Pay works with conventional credit card readers, using the newer EMV or NFC tech, or even the older ones using magnetic strip technology – by holding the phone next to it, the credit card information contained in the magnetic strip gets transmitted via a technology called magnetic secure transmission (MST).

With such flexibility in interacting with the credit card reader, Samsung Pay can truly replace that pile of credit cards in your wallet with a phone app.