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The US is fast catching up with the rest of the world when it comes to mobile payments. Many banks and credit unions now include mobile payment options as a standard feature of their banking apps, and more of us are taking advantage of the convenience.
Mobile payments allow you to move money between you and your contacts, other mobile numbers and even retailers with the help of your cell phone. Unlike standard bank transfers, you might not even need the payee’s bank account details for delivery.
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Today, you can easily send money to bank accounts using only your cell phone. You might see this service referred to as SMS mobile payments. SMS stands for short message service, and it’s a term used more widely outside the US to refer to texting.
Whether sending money to a friend or paying for a purchase, these payments require only your recipient’s phone number. Depending on your bank’s payment system, funds are either transferred from your bank account or charged to your mobile phone bill.
For a successful mobile money transfer, both ends of the transfer must sign up for mobile payments by:
After signup, your financial institution provides instructions on how to transfer money by phone. After completing your payment request, your recipient receives a text explaining how to claim your money.
Some institutions and retailers also allow customers to make purchases by text. In most cases, the retailer texts a payment request to your phone — usually in the form of a link or code. The link or code acts as mobile checkout, allowing you to pay for goods or services on the spot.
Mobile wallets are another way to use your cell phone for purchases and transfers. Offered by banks and third parties, these wallets requires only your credit or debit card number and a mobile device to get started.
In most cases, you download a wallet app, enter your credit or debit card information and set up a PIN or fingerprint for security. From there, your wallet takes care of transactions without you having to dig for your card.
Some cell phones are equipped with near-field communication technology. It’s a tech-heavy way of referring to contactless payments, whereby you pay for purchases by waving or tapping your device on a contactless terminal.
You must sign up for a mobile wallet, and only select US retailers participate in contactless payments. But access is growing, with big-name brands like Costco and Walmart on board for tap-and-go payments.
Read our pros and cons on contactless payments.
Google Pay is a mobile wallet that offers a multiple payment methods supported by most major US banks. You simply sign up for a Google account, add your credit or debit card as a payment and send or receive money in minutes.
Google Pay allows users to transfer money and pay for purchases by:
If you’ve got an iPhone, Apple Pay helps you get paid and send cash to phones through similar payment methods. You set up and verify your debit, credit or Apple Pay Cash card in the built-in mobile wallet app to transfer money and buy through:
If you aren’t quite ready for mobile payments and mobile wallets, other third-party payment services make it easy to store your sensitive payment details for future mobile transactions.
These services often require only a phone number or email and bank account for on-the-go transfers and payments.
The popular PayPal helps you send and receive mobile payments directly to phone numbers and email addresses. You sign up for a free account, linking your credit or debit card to send money. Your recipient doesn’t need a PayPal account for you to initiate the transfer.
Use PayPal to send payments with your cell phone in three ways:
After you confirm your payment, your recipient receives an email or text allowing them to create an account and claim the money. Because funds are stored in your PayPal balance, you don’t even need a bank account.
Use your balance to send money to loved ones, withdraw money to your linked bank account or pay for goods and services at millions of retailers who accept PayPal at checkout.
Square is a mobile payment system that allows you to accept sales payments and send invoices. But it’s recently jumped into the mobile payments market with the Square Cash app.
Square Cash enables peer-to-peer payments directly to and from debit cards through:
Zelle is both a standalone app and integrated into bank systems for peer-to-peer payments with only an email address or phone number.
Both parties of the transaction need a bank account to use the service. But once your email or phone number is linked to your account through Zelle, you can start sending money. Your recipient receives notification explaining how to claim money, setting up an account, if necessary, to receive the funds.
The peer-to-peer Venmo also makes sending and receiving money easy, even allowing for purchases at select retailers. You download the app and link your credit, debit or prepaid card to immediately send money to other Venmo users.
Payments and requests are sent directly to others using their username or email — or by phone, if your recipients don’t have a Venmo account. After you confirm a payment, they get instructions on how to create an account or complete the transaction.
More widespread is mobile banking, which helps you manage your accounts using only your cell phone and an Internet connection. The majority of today’s banks and credit unions offer mobile banking apps linked to your bank account.
Depending on your bank, you sign in to the app to manage your account and:
With hacking and data breaches in the headlines, you might be concerned about the safety and security of mobile banking and payments. But digital payments are more secure than you might think, employing tools like:
When it comes to offline safety, most people know not to share their PIN or card information. Similarly, here’s what to keep in mind when sending money through your cell phone.
Your cell phone is for much more than chatting with loved ones. Today, you can not only monitor your bank accounts but also transfer money across them and pay at retailers worldwide. But you’ll want to find a service that best fits your lifestyle, accounts and shopping habits.
Learn more about flexible payment services and making the most of your money in our comprehensive guide to bank accounts.
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I do I upload money from moneygram so I can get my payment
Hi Amy,
Thank you for reaching out to Finder.
Though your question is a bit unclear, you may want to check our Finder page on Moneygram. This page provides us with an overview of how Moneygram works as well as tips and guides specific to transferring payments via Moneygram. Hope this helps!
Cheers,
Reggie