Mobile Payments: How to Accept Them (2026)

See how mobile payments work, which methods customers use, and what each type costs you to accept, plus the risks to manage before you turn them on.

This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax, and business advisers, as needed. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.

A mobile payment is any payment made with a phone or other mobile device instead of a physical card, cash, or check. Customers can tap their phone at a terminal, scan a QR code, or check out in a browser or app with their saved wallet.

According to a 2026 J.D. Power survey, 92% of US small businesses accept digital wallets, compared with 78% that accept cash and 57% that accept checks. Only debit and credit cards, at 96%, are more widely accepted. If your store doesn’t take mobile payments, you’re now in the minority.

This guide covers what mobile payments are, how they work, the main types, and how to start accepting them with your payment processor.

What is a mobile payment?

A mobile payment is a digital transaction method that uses a smartphone or other mobile device to pay for goods or services, offering a convenient and fast payment option. A mobile point-of-sale (POS) system is a great way to accept contactless payments.

These mobile devices might run mobile wallet apps or peer-to-peer mobile payment apps. Or, they might enable transactions via SMS. Consumers can use mobile payment apps or use their credit card to check out on mobile ecommerce sites.

Popular mobile wallet apps include Apple Pay, Google Wallet, and Samsung Wallet. Popular peer-to-peer mobile payment apps include Venmo, PayPal, and CashApp.

Shop Pay is Shopify’s own accelerated checkout option. It saves a customer’s contact, shipping, and payment details, so returning shoppers can complete their purchase in just a few taps. It’s included with Shopify Payments. 

How do mobile payments work?

• A customer taps their device to send payment data
• Their digital wallet creates a virtual account number
• The mobile device authorizes the payment
• The bank authorizes the payment

Mobile payments work in four steps. By the end, the customer will see their payment go through at the terminal or checkout, but the money will move to the merchant on its usual processing schedule.

Here’s a more detailed look at the process:

A customer taps their device to send payment data

First, a customer taps their device to a payment terminal or scans a QR code to open a payment page. After a tap, the phone sends payment data to the terminal using near-field communication (NFC), a short-range radio connection. Online, the wallet passes the same kind of data through the browser or app. With a QR code payment, the payment is processed as a card-not-present transaction.

Their digital wallet creates a virtual account number

When a customer adds their card to a mobile wallet, the wallet isn’t sending the real card number over at checkout. The wallet uses a process called payment tokenization, sending a one-time dynamic security code or virtual account number (depending on the wallet). The merchant and payment processor handle only the token, so the real card number is never exposed at checkout.

The mobile device authorizes the payment

Before the token is released, the customer must confirm the payment, usually with some sort of biometric authentication like Face ID or Touch ID, or the device passcode. Apple Pay and Google Wallet both build this device check into the payment process so card details alone can’t complete a wallet payment.

The bank authorizes the payment

The processor sends the token to the card network, which passes it along to the issuing bank. The bank checks the account and approves or declines the payment. If approved, funds will then move from the bank to the merchant’s account on its usual payment processing schedule.

The entire process takes only seconds, though funds take more time to appear in the end merchant’s account. With Shopify Payments, you can schedule your payouts to go through daily, weekly, or monthly.

Types of mobile payments

• Mobile wallets
• Mobile ecommerce
• QR code payments
• Peer-to-peer apps
• Point of sale (POS)
• SMS and carrier billing

Mobile payments fall into a few common categories. While each has its unique features, all present fast and convenient ways for your customers to pay. Here are the most common types:

Mobile wallets

Mobile wallet services include apps like Apple Pay, Google Wallet, and Samsung Wallet. These services run on computers, smartphones, tablets, and smartwatches, and link to a customer’s credit card, debit card, or bank account. 

Once a person sets up their mobile wallet account, they can use these devices much like they’d use a credit card. In a brick-and-mortar store, they can tap their device on a payment terminal equipped with an NFC (near-field communication) radio. Online, they can use their mobile wallet account on many merchants’ checkout pages by selecting a mobile wallet icon (such as Apple Pay) from among the checkout options.

Shop Pay provides an alternative accelerated checkout option that saves customer information for a faster checkout process on both mobile and desktop. This works similarly to a mobile wallet in that it enables quick mobile payments when customers shop online.

Mobile ecommerce

Mobile ecommerce, or m-commerce, is buying and selling through a phone or tablet, including mobile browsers and apps. It’s a subset of ecommerce, and mobile payments are how those purchases get paid for. Shoppers can pay with a saved wallet or accelerated checkout instead of typing card details on a small screen.

QR code payments

QR code payments let a customer scan a code with their phone to pay, leading them to a payment portal on their mobile device’s browser. These can be useful for pop-up events or when the internet or processor is down in-store.

Shopify POS supports QR code payments through local payment methods. To turn them on, open the Point of Sale channel, go to Settings, and select Payments. At checkout, tap the payment method to generate the QR code. You can then use a customer-facing display, like your POS terminal, so shoppers can see and scan the code.

Peer-to-peer apps

Peer-to-peer (P2P) apps move money from one person’s account to another. Common payment apps include PayPal, Venmo, and CashApp. 

Zelle is another popular peer-to-peer payment method that is accessed through banking apps rather than its own standalone app. Some of these services enjoy wide acceptance from small business retailers. This means you can pay a business owner using PayPal or Venmo instead of using a credit card.

Point of sale (POS)

Point-of-sale mobile payments can happen at the checkout counter, on the sales floor, or at a market stall. Shopify POS can be set up for use in any of those instances. 

Current options for accepting payments in person with Shopify POS include:

• Tap to Pay on iPhone. Works on iPhone XS or newer on every plan and accepts contactless cards and all digital wallets. In the US, it requires Shopify Payments.
• Tap to Pay on Android. Accepts contactless payments on a compatible Android phone.
• Tap to Pay in the Shopify app: Supports Quick Sale for taking a payment without setting up a full POS.
• Verifone Victa Mobile. Connects over Wi-Fi and runs on a 6.7-inch screen with up to 12 hours of battery. Requires Shopify Payments.
• Shopify POS Terminal and Tap & Chip Card Reader: Reads cards at the counter or on the go with dedicated hardware.

SMS and carrier billing

SMS payments let people make payments through a text message exchange, with the charge tied to the card or account linked to their phone number.

Carrier billing adds the charge to the customer’s phone bill or deducts it from a prepaid balance. The mobile carrier takes a share of the revenue, so the merchant receives less than the full sale amount.

Benefits of mobile payments

• Customer convenience
• Secure payment
• Speed of transaction
• Popularity among consumers

Whether you’re accepting mobile payments online, contactless payments at a point of sale, or Apple Pay or Google Wallet, there are several advantages for both you and your customers:

Customer convenience

Customers who’ve saved their payment details to a mobile wallet or accelerated checkout portal can complete purchases without typing in a card number. 

Baymard Institute lists a long or complicated checkout as a reason 17% of shoppers abandoned their cart, and too few payment methods as a reason for 9%. Wallets and accelerated checkouts work to improve both of those problems.

Secure payment

Due to the way mobile payments are authorized, they’re among some of the more secure forms of commerce. However, the way that security works depends on the payment method. Here are the frameworks for some of the more popular mobile payment types:

• Tapped payments. The phone sends a token to the terminal over NFC instead of the card number, and the customer approves the payment with Face ID, Touch ID, or a passcode.
• Accelerated checkouts. Apple Pay and Google Pay at checkout rely on the same device tokens, with the customer authenticating on their own device. Shop Pay adds protection for the store, since Shopify Protect has free chargeback protection against fraud on eligible orders.
• P2P transfers. A P2P transfer doesn’t involve a card at all. The sender authorizes it in their bank’s app, and the money moves from one bank account to another.

Tap, wallet, and P2P payments all avoid the exposure of a keyed-in card payment because no card number is exchanged with the merchant.

Speed of transaction

Financial institutions process mobile payments within seconds, making them a fast and convenient payment method for your customers. Note that just because the transaction speed itself is fast doesn’t mean the money actually moves to your account faster. Settlement tends to take the same typical processing time regardless of payment method.

Popularity among consumers

More customers are spending more money using mobile payments. Federal Reserve data shows the share of US consumers making mobile payments in stores more than doubled between 2021 and 2025, from 8.9% to 21.3%, while the share of all in-store payments made with a mobile device nearly tripled, from 5.6% to 15%.

Mobile payment risks and how to reduce them

While mobile payments can present a new level of security, there are still risks involved depending on how the payment is taken. The main variable is whether or not the card is physically present, but you can reduce some of the risk with smart habits.

Here are a few risks to consider:

Card-present vs. card-not-present

A card-present transaction happens when the customer taps, inserts, or swipes their card or device at your checkout counter. A card-not-present transaction happens when the store can’t see or read the card, as with online orders, phone orders, and payments typed in by hand. Because card-not-present transactions carry more risk, fees tend to be higher than in-person and encrypted methods.

PCI considerations

The Payment Card Industry Data Security Standard (PCI DSS) sets rules for handling card data. Shopify is certified as a Level 1 PCI DSS compliant service provider, and Shopify stores are PCI compliant by default. If your store also takes payments outside of Shopify, such as through a third-party terminal or gateway, you’ll want to confirm PCI compliance through that provider.

Fraud that targets customers

The FTC reports a record $16 billion lost to fraud of all kinds in 2025, up about 25% from 2024, with $3.5 billion of it lost to imposter scams. The FTC says costly scams often start with a fake bank security alert that convinces people to move money, which is one reason direct transfers carry extra risk and should be made with more caution than card payments.

These risks can be reduced with a few smart habits. Use this store owner security checklist:

• Turn on two-step authentication. Shopify Payments requires it, and payouts can be held without it.
• Take payments by tap or chip whenever possible. Keyed entry sees higher fees and a higher fraud risk.
• Use a customer-facing display for QR payments. The customer can see the amount and the code before scanning.
• Check eligibility for Shopify Protect. It offers free chargeback protection against fraud for eligible Shop Pay orders.
• Know where to report fraud. Customers and store owners can file reports at ReportFraud.ftc.gov.

Accept mobile payments for your business

If you want to accept mobile payments, you first need to turn on Shopify Payments, which supports all of the wallets and accelerated checkout options covered in this guide. 

Set up Shopify Payments

Follow these steps to get started:

1. In your Shopify admin, go to Settings, then Payments, and select Activate Shopify Payments.
2. Enter your personal and identity information, business information, and the phone number for your card statements.
3. Review the details and submit for verification.
4. Connect the bank account where you want payouts to go.
5. Set up two-step authentication, which is required for payouts.

Which setup fits which business?

If you’re not sure which mobile payments your business should accept, use this quick comparison to decide:

• Online-only store. Use Shopify Payments with accelerated checkouts like Shop Pay and Apple Pay.
• Market seller or pop-up. Opt for Tap to Pay on iPhone or Android, or a Tap & Chip Card Reader for portable selling. You may also want to consider P2P apps.
• Brick-and-mortar retail store. Use a Shopify POS Terminal or Verifone Victa Mobile with Shopify POS. You may also consider local payment methods with QR codes on Shopify POS.

What wallet fees and processor fees cost

Wallet and processor fees also need to be considered. Note that these two fees are applied at different points of the transaction. For example, Apple Pay passes a token to your processor, and you pay the processor’s card rate on the transaction.

Shopify’s pricing on yearly billing shows how these rates vary:

Payment type	Basic	Grow	Advanced
Online card, wallet, or Shop Pay	2.9% + 30¢	2.7% + 30¢	2.5% + 30¢
In person tap, chip, or swipe	2.6% + 10¢	2.5% + 10¢	2.4% + 10¢
In person, manually entered	3.5% + 10¢
PayPal wallet	Starting at 3.49% + 49¢

Mobile payments FAQ

What is a mobile payment?

A mobile payment is a contactless way of paying that involves a mobile device such as a mobile phone, a smartwatch, or a tablet. Mobile payments are completed using a digital wallet or mobile app, and can be linked to bank accounts, credit cards, debit cards, and other payment methods. The payment process involves scanning a QR code or tapping a mobile device on an NFC reader to securely initiate the payment.

How do you use mobile payments?

Mobile payments can be used to purchase goods and services in person or online. In person, a customer can pay with a mobile wallet app or mobile payment service on their smartphone by scanning a QR code or tapping their phone against an NFC-enabled payment terminal. Online payments can be made by entering your payment information into a website or app. You can also use mobile payments to send money to friends and family or to pay bills.

Do mobile payments cost more to accept than credit cards?

Most mobile wallet payments cost the same as the card attached. Apple doesn’t charge merchants, so the processor’s card rate is the only fee that applies. On Shopify, in-person tap payments cost 2.6% + 10¢ on a Basic plan, while online wallet payments cost 2.9% + 30¢.

What are the downsides of mobile payments?

The downsides depend on the method. QR payments carry online rates and higher retail chargeback risk, and direct P2P transfers lack the buyer and fraud protections cards have. Customers also need a compatible device, and store owners need compatible hardware or a supported processor.

What is the best mobile payment service?

No single service fits every store. Apple Pay and Google Wallet are the wallets many customers already have, and Shop Pay speeds up online checkout for returning shoppers. Offering more than one service covers more customers, and Shopify Payments supports all three (Apple Pay, Google Wallet, Shop Pay) plus more.