Yahoo Finance Apple Pay, Samsung Pay and Google Pay: How They Stack Up
You probably use your phone for just about everything -- texting, gaming, shopping -- but what about as a replacement for your wallet? Mobile payment apps such as Apple Pay, Samsung Pay and Google Pay allow you to use your debit or credit card in stores and online without ever having to pick up a piece of plastic.
"Mobile payments make for more streamlined, convenient and secure payments than conventional credit card or debit card purchases," says Attila Tomaschek, a researcher at digital privacy resource ProPrivacy. Though adoption of the technology has been relatively sluggish, mobile payments could make traditional payment methods obsolete. Here's a closer look at how each of the three major mobile payment apps works.
Apple Pay is a mobile payment app designed for Apple devices. It allows users to make purchases in stores with their phone or Apple Watch at contactless payment terminals by employing near-field communication, as well as in apps and online. Users in the U.S. can send payments via Apple Cash through the Messages app using their iPhone or Apple Watch. The new Apple Card is also deeply integrated with Apple Pay.
"Apple Pay is really only beneficial for Apple device consumers," says Jared Weitz, CEO and founder of small-business lender United Capital Source. "Apple Pay is a great option for payments based on its versatility and security. Not only can you make in-store purchases, buy apps and perform web transactions, but you can also send and receive money from family and friends."
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How to Pay With Apple Pay
To pay with Apple Pay using your iPhone's Face ID function, double-click the side button and then look at your iPhone's screen to authenticate the transaction. Or, you can enter your passcode instead. Next, hold the top of your phone close to the contactless reader. When the transaction goes through, the display will say "done" and show a check mark.
To use Apple Pay with your iPhone and Touch ID, rest your finger on Touch ID and then follow the same process of holding your phone near the reader. To pay with an Apple Watch, double-click the side button and hold the display of your Apple Watch near the contactless reader. You'll feel a tap when the transaction goes through.
Note that all of these steps will result in paying with your default card. If you want to switch to another card, you'll need to manually change it before holding your device to the reader. You can also use Apple Pay as an in-app payment method when you see it listed as a payment option.
Where Is Apple Pay Accepted?
In addition to being able to make payments to Apple services such as iTunes and the App Store, Apple Pay is accepted at millions of retailers. A few of the major companies that allow you to pay with Apple Pay include Best Buy, Costco, Macy's, Starbucks and 7-Eleven.
Additionally, Apple Pay is used by certain transit systems in the Chicago; Portland, Oregon; and Vancouver, Washington, metropolitan areas, as well as transit apps, including those from Caltrain in San Francisco, Massachusetts Bay Transportation Authority in Boston and Metrolink in Los Angeles. You can also use Apple Pay on a few college campuses, including the University of Alabama and Duke University. Finally, it's possible to make donations to many charities using Apple Pay, such as the American Red Cross and Save the Children.
Use Apple Pay wherever you see the Apple Pay or contactless payment symbol. You can also search for Apple Pay in Apple Maps for nearby stores that accept it.
How Samsung Pay Works
Samsung Pay is for Samsung device users, specifically the Galaxy. "Samsung Pay has a similar security set up to Apple Pay in that it uses a token system for transactions and requires an iris scan, fingerprint ID or PIN to complete a purchase," Weitz says.
Samsung Pay also has an advantage over other mobile payment apps because in addition to using NFC technology, it also uses magnetic secure transmission technology, which emulates the magnetic strip of a credit card. This allows it to be used on conventional magnetic strip credit card readers at the point of sale.
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How to Pay With Samsung Pay
To make an in-store purchase using the Samsung Pay app, open the app on your phone, tap "pay" and choose the card you want to use. Next, select "PIN" to enter your passcode, or use iris authentication. Alternatively, you can use the fingerprint scanner if you have it set up.
Once the transaction has been authenticated, hold the top of your phone close to the contactless reader and follow any prompts to complete the transaction. If you have your "favorite cards" set up, you can access Samsung Pay even faster by swiping up and then authenticating the transaction using your PIN, iris or fingerprint.
Where Is Samsung Pay Accepted?
Thanks to Samsung Pay's use of both NFC and MST technology, it's widely accepted. "Samsung Pay is great due to its availability of use, since it can be used at virtually any payment location," Weitz says.
Additionally, Samsung Pay continues to partner with various apps to facilitate in-app payments, including Samsung Cloud, Galaxy Apps, Raise and Exxon Mobil Speedpass+.
How Google Pay Works
Google Pay, formerly Android Pay, is for consumers with an Android device who are looking to make peer-to-peer payments or payments for items at purchase locations that support NFC, according to Weitz. In addition to in-store and peer-to-peer payments, Google Pay can be used for online and in-app purchases.
Because Samsung phones run on Android technology, it's possible to use both Samsung Pay and Google Pay. However, you'll need to select one as the default payment method.
How to Pay With Google Pay
To make an in-store purchase using Google Pay, wake up your phone screen and then unlock your phone. You don't need to open the Google Pay app -- simply hold the back of your phone near the contactless payment reader until you see a blue checkmark on the screen. If prompted, follow any additional instructions displayed. Note that you need to turn on the NFC payment function in your phone's settings to use it in stores.
To pay with your smartwatch, open the Google Pay app and then hold your watch close to the contactless payment terminal until you feel a buzz or hear a sound. If prompted, enter your PIN if paying with a debit card, or select "credit" to complete the transaction.
You can also select Google Pay as a payment method on websites and apps that accept it. In addition to using Google Pay to make purchases, you can request and send money.
"Google Pay really stands out in its peer-to-peer payment capability, as you can send money to a number or email address on iOS or Android," Weitz says.
[Read: Best Balance Transfer Credit Cards.]
Where Is Google Pay Accepted?
Google Pay is accepted at millions of locations around the world. Among Google Pay's featured merchants are McDonald's, Trader Joe's, Chevron, JetBlue and Nike. Google Pay is also accepted by many websites and apps, including Airbnb, DoorDash, Kayak and Starbucks. Certain transit agencies, such as the Chicago Transit Authority and the Las Vegas Monorail, also accept Google Pay.
You can pay with Google Pay anywhere the Google Pay or contactless payment symbols are displayed.
Are Mobile Payment Apps Safe?
One of the most convenient features of Apple Pay, Samsung Pay and Google Pay is that there is no need for consumers to verify their identity to the merchant by providing photo identification alongside their card, since the authentication process takes place directly on the user's device, Tomaschek says. That also makes these mobile payment methods highly secure -- as secure as your phone is, anyway.
With Apple Pay, users authenticate purchases using a PIN, Touch ID or Face ID. Similarly, Samsung Pay users use a PIN number, fingerprint or iris scan to authenticate purchases. With Google Pay, the device simply needs to be unlocked in order to verify a purchase, "so users would need to be vigilant and use a secure method to lock their device, like a PIN number, pattern, password or fingerprint," Tomaschek says.
He adds, "What's more, in the event that a user's device gets lost or stolen, each of the three services allows the user to remotely disable the payment apps and wipe financial information off the device. This means that there is no need for the user to call their bank to cancel their credit or debit cards in case of loss or theft of a device."
Additionally, when you make a purchase using a mobile payment app, the merchant never gets any access to your credit card details. This is because the app generates a unique token for each purchase, which is then verified by the card network. "This effectively protects the consumer from credit card skimming tactics or other risks of data theft," Tomaschek says.
Apple Pay vs. Samsung Pay vs. Google Pay: Which Is Best?
At the end of the day, whether you choose to use Apple Pay, Google Pay or Samsung Pay depends on which device you primarily use. For example, Apple users can only use Apple Pay, and non-Samsung Android users can only use Google Pay. Samsung users, on the other hand, can use either Samsung Pay or Google Pay.
"In any case, all three options provide consumers with fast, convenient, streamlined and, most importantly, secure payment options," Tomaschek says.
He added that all of these factors should add up to significantly faster adoption rates for mobile payment technology soon. "More and more consumers will soon begin to realize the security and convenience advantages over traditional credit card payments that mobile payment technology affords. More and more merchants will surely, in turn, be quick to update their point-of-sale systems to adapt to and cash in on the evolving payment landscape," he says.
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