Building loyalty as a business means meeting your customers where they are, especially where payment options are concerned.
Thanks to smartphones and secure authentication, mobile payments continue to explode in usage. In fact, the global mobile payment market was valued at US $2.67 trillion in 2024 and is projected to grow to roughly US $10.48 trillion by 2033.
Mobile payment systems are revolutionizing how consumers pay for goods and services. The ubiquity of smartphones allows shoppers to make secure in-person and online transactions in real-time, without the need for cash or cards.
In this blog, we’ll explore the benefits of mobile payment solutions and what types of mobile payment systems are currently available on the market. We also share our top tips for what merchants should consider when choosing a mobile payment system for their business.
TL;DR
- Mobile payment services allow merchants to accept payments from consumers using mobile devices.
- Mobile payments offer a high level of convenience and security to both consumers and merchants, in-store and online.
- To choose the right mobile service provider, merchants should consider fees, integrations, security, and customer support.
What are Mobile Payment Services?
A mobile payment service is a payment solution that allows payments to be made or accepted using a mobile device. Mobile payments can occur within physical storefronts, via eCommerce websites, or in-app.
Mobile payments will typically involve one of several technologies, including Near Field Communication (NFC), QR codes, or SMS messaging.
Mobile payment solutions offer a high level of convenience and security to merchants and consumers. Shoppers don’t need to carry cash or physical cards on their person while visiting a store that accepts mobile payments, while merchants can reduce their reliance on expensive point-of-sale systems that offer slower payment processing.
What about mobile payment systems?
Mobile payment systems refer to the technologies and infrastructure that enable businesses to accept payments via mobile devices—whether in-store, online, or in-app. These systems include the hardware, software, and payment networks needed to process secure transactions from smartphones and tablets.
By contrast, mobile payment services are the platforms or apps—like Apple Pay, Google Pay, or Samsung Pay—that customers use to make purchases using stored credit card, debit card, or bank account information. In short:
- Mobile payment systems = the merchant-facing tools that process mobile payments
- Mobile payment services = the customer-facing apps that facilitate the payment
Why Do Merchants and Customers Need a Mobile Payment Service?
Mobile payments are growing in popularity
Consumers are increasingly using their mobile devices to handle everyday tasks — including payments. As contactless payments become the norm, not accepting mobile payments means potentially losing out on a growing audience.
The fact is, mobile payment solutions like digital wallets have gone mainstream. According to CapitalOne, nearly two-thirds of U.S. adults have used a digital wallet in the past month, and by 2027, digital wallets are projected to account for over 60% of online payments and nearly half of all in-store transactions worldwide.
Mobile payments allow you to accept payments anywhere
Traditional POS systems can be heavy and difficult to move around within storefronts, making sales channels such as tradeshows, events, or pop-up stores difficult to execute. A key advantage of mobile payments is that you only need a small plugin to turn your mobile phone or iPad into a payment processor for contactless payments. With this functionality, your business can process credit card payments virtually anywhere, without the burden of expensive hardware.
Mobile payments offer good security
Although there are concerns about the security of mobile payments, the right mobile payment solution can make these transactions far more secure than cash and checks, or even card transactions. In fact, mobile and digital wallets have a 99.6% lower chargeback volume than traditional credit cards.
Contactless payments using Near Field Communication (NFC) employ tactics such as secure encryption and fingerprint authentication to initiate transactions, which minimizes the risk of fraud. Because mobile payments are digital payments, this also avoids the loss or theft of revenue within storefronts.
Mobile payments improve customer convenience and satisfaction
With mobile payment options like Apple Pay, Google Pay, and Samsung Pay, customers can complete purchases quickly using their preferred app. These seamless, tap-to-pay experiences reduce friction at checkout—whether online or in store—and boost customer satisfaction.
Mobile payments support omnichannel business operations
Mobile payment systems let you accept payments across physical stores, eCommerce websites, and mobile apps. This flexibility makes it easier to offer consistent service and collect customer data across multiple sales channels, improving your operations and marketing insights.
Different Types of Mobile Payment Solutions
Mobile wallets
A mobile wallet is a digital wallet that allows consumers to store credit and debit card information on their mobile devices. This information can then be used to make in-person payments using credit card readers enabled with NFC technology. The consumer simply has to open their mobile wallet, choose the appropriate debit or credit card, and hold it near the contactless card reader until the payment is accepted.
Card numbers and other payment information are securely encrypted to prevent theft, in the case of the loss of a device. Popular mobile wallets include Apple Pay and Samsung Pay.
Peer-to-peer payment apps
Due to the sometimes restrictive nature of bank transfers, peer-to-peer mobile payment services have sprung up to make it easier for consumers to make money transfers between friends and family. These apps work by linking a user’s account with a bank account or credit/debit card, allowing them to receive or request transfers in real-time with minimal transaction fees. Some services also allow consumers to make online payments using their account balance. Popular peer-to-peer apps include PayPal, Venmo, and Zelle.
SMS mobile payments
An SMS mobile payment service, also known as Text to Pay, allows a merchant to invoice a customer using their phone number. First, the merchant sends a secure payment link to facilitate a transaction. The customer then enters their payment information, often using a prepaid card or mobile wallet.
SMS payments are widely used in developing nations, where many consumers don’t have access to traditional financial institutions or major credit cards. Other benefits are that SMS payments can support multiple payment types, and offer merchants an all-in-one payment processing and invoicing solution.
QR codes
QR code payments are a contactless payment method where a customer scans a QR code generated by the merchant with their smartphone. This directs them to a unique payment page. The customer then enters their payment details or chooses a mobile wallet and completes the payment.
Although not widely used within Western countries, QR code payments are very popular in Asia, especially in China and Japan. QR codes work well within storefronts because more than one customer can scan a code and complete the payment at a time, which frees up staff time and reduces queues at the checkout.
Mobile payment readers
A mobile payment reader attaches to a smart device, such as iPhone or Android, to enable businesses to accept card payments without needing a full POS system. Mobile payment readers can accept a combination of contactless, magnetic stripe, and EMV chip card payments, depending on the provider. This liberates retail employees from the checkout and allows them to meet customers wherever they are in a storefront or event.
How to Choose the Right Mobile Payment Services Provider
Choosing the right mobile payment service is a critical step in making sure your business runs smoothly—whether you’re selling online, at events, or in a physical store. The ideal provider will help you accept mobile payments, process secure transactions, and improve the customer experience across all touchpoints.
Below are key factors to consider when evaluating a mobile payment service provider:
Evaluate the types of mobile payment methods they support
Not all providers accept the same mobile payment options. Look for one that supports a wide range of digital wallets, including:
- Apple Pay, Google Pay, and Samsung Pay
- Contactless credit or debit card payments via NFC-enabled devices
- QR code payments and mobile applications
- Support for carrier billing, SMS payments, or peer-to-peer platforms (depending on your audience)
Understand the payment process and integrations
Your provider should integrate seamlessly with your existing point of sale system, eCommerce platform, and mobile devices. A smooth setup helps you avoid friction in:
- Processing credit card payments
- Syncing with inventory and accounting software
- Managing monthly payments, transaction fees, and reconciliation
Consider transaction fees and cost structure
Affordability matters—especially for small business owners. Ask:
- What are the transaction fees for each payment method?
- Are there monthly service charges or hardware rental fees?
- Do they charge extra for online payments, international cards, or refunds?
Look at customer support and service reputation
Finally, choose a service provider known for fast, reliable customer support. This ensures you’re never left hanging when issues arise with payment systems or mobile network operators. Check:
- Availability of live chat or phone support
- Onboarding and training resources
- User reviews or merchant testimonials
Final Words
As smartphone penetration continues to grow, more consumers are becoming aware of the convenience and security they provide as a payment option. For merchants, implementing a reliable mobile payment service provides a more efficient, streamlined payment process that improves the customer experience both online and in-store.
With mobile payment acceptance fast becoming an expectation by shoppers, staying ahead of the curve ensures you can keep delivering the service your customers expect. Check out Stax to find the ultimate all-in-one mobile payment solution.
