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A mobile payment service is a service that lets you use a mobile device to make or receive a payment. That can mean tapping a phone at a store terminal, buying on a merchant’s website, having a purchase billed through your wireless provider, or sending money to another person. The exact boundaries depend on who is using the term: a consumer regulator, a central bank, or a payment company may each draw them differently.
The broad definition
The US Consumer Financial Protection Bureau (CFPB) uses the term widely in its consumer guidance on paying with a mobile phone. Its examples include contactless payments at a point of sale, purchases on merchant websites, purchases billed through a wireless provider, and transfers to another person. The common thread is the device, not the technology underneath.
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Some national systems stretch the definition further. Jordan’s central bank describes its JoMoPay system, launched on 1 April 2014, as covering wallet-to-wallet transfers, payments, bill payment and cash withdrawals from ATMs using an e-wallet or bank account.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsMobile payment, wallet, NFC: how the terms differ
| Term | What it is | Relationship to mobile payment |
|---|---|---|
| Mobile payment | The act of paying or receiving money using a mobile device | The umbrella activity |
| Mobile wallet | An app or wallet that holds or accesses payment credentials or stored value | One route to a mobile payment, not a synonym for all of them |
| Contactless / NFC payment | A short-range payment in which the phone communicates with a compatible terminal | One method; website payments and person-to-person transfers don’t need NFC |
| QR or other readable codes | A code scanned or displayed at the point of sale | An alternative to NFC that the CFPB also describes |
| Remote payment | A payment initiated over the internet or another distance-communication device | Covers online and in-app purchases |
So “Is a mobile wallet the same as mobile payment?” is answered no. A wallet is a tool; a payment is what you do with it. Similarly, tap-to-pay is the best-known form, but it is only one of several.
#1 Best Overall
- Use the, easy-to-use, and customizable POS to get started.
- Accept contactless payments, chip cards, Apple Pay, and Google Pay from anywhere, with improved connectivity, extended battery life, and enhanced security. Pay one low rate for every tap or dip.
- No long-term commitments or contracts, no monthly fees- and with offline payments, keep taking payments for up to 24 hours.
- Safely and securely accepts payments anywhere. Plus, get data security, 24/7 fraud prevention, and payment-dispute management at no extra cost.
- Use the, easy-to-use, and customizable POS to get started.
Common types of mobile payment
In-store (proximity) payments
You pay at a physical terminal, typically by NFC contactless or by scanning a code.
Online and in-app payments
You pay a merchant’s website or app remotely, using credentials stored on the device.
Rank #2
- Get your money as soon as the next business day.
- Get set up quickly with no long-term commitments. Download the Square Point of Sale app for free, create an account, and start taking payments anywhere.
- Run your business all in one place with the free Square Point of Sale app. Track your sales, manage inventory, accept tips, send receipts digitally, and more.
- Works with Apple devices with a Lightning connector.
Carrier billing
The charge is added to your wireless bill, as the CFPB notes for some purchases.
Person-to-person transfers
You send money to another individual from an app, bank account or wallet.
Rank #3
- With Square Terminal, you can ring up sales, accept payments, and print receipts, all with one device. Use it at the counter or ring up customers anywhere in your store.
- Accept all major credit and debit cards and pay one low rate with no hidden fees and no long-term contracts.
- Process chip cards in just two seconds.
- Get your money as soon as the next business day.
- Use it cordlessly with the built-in battery, designed to last all day.
Bill payments and cash-out
In systems such as JoMoPay, a wallet can also pay bills and withdraw cash at ATMs.
“Payment service” as a legal term
In regulation, “payment service” has a defined meaning that varies by jurisdiction. There is no single worldwide legal definition, so any legal statement needs a place and a framework attached.
Rank #4
- Pay one transparent rate per swipe for Visa, Mastercard, Discover and American Express.
- Works in conjunction with most downloadable Square point-of-sale apps on your device. Customers can pay, tip and sign directly on your device. Track payments in cash, gift cards and more. Also lets you send receipts via e-mail or text message, makes it easy to apply discounts, keeps a data and sales history log and more.
- Accepts magstripe credit card payments, including those from Visa, Mastercard, Discover and American Express (fees apply).
- App sends deposits to your bank account within 1 to 2 business days, or enjoy instant deposits (fees apply).
- United Kingdom: The Financial Conduct Authority summarises payment services under the Payment Services Regulations 2017 (alongside the Electronic Money Regulations 2011) as including account operations, payment transactions, issuing payment instruments, acquiring, money remittance, account information and payment initiation. The FCA page was last updated on 17 December 2025, according to its listing.
- European Union: The Payment Services Directive (Directive (EU) 2015/2366, “PSD2”) defines a remote payment transaction as one initiated via the internet or a device usable for distance communication. The European Banking Authority discussed how this applies to contactless transactions in Q&A 2019_4594, with a final answer dated 21 January 2022. It would therefore be wrong to say every tap-to-pay transaction is legally “remote” or “not remote” without reading that guidance.
- Kenya: The Central Bank of Kenya defines payment service providers and describes mobile phone money transfer operators as providers authorised under the National Payment System Act 2011 and its 2014 Regulations.
In everyday usage, then, “mobile payment service” means the consumer-facing service. In law, it means a regulated activity that depends on local rules.
What varies by provider and country
Which services exist, which phones they support, what fees apply, what consumer protections cover a transaction, and which authentication steps are required all differ by location and provider. Check the current guidance of your own regulator or provider before assuming a protection or fee applies. No single provider, phone model or accessory defines the category.
Quick Recap
Best Value
- Accept all major credit and debit cards and pay one low rate
- No hidden fees and no long-term contracts
- Mobile card reader that accepts payments anywhere & anytime
- Use the free SumUp App on your smartphone or tablet to start accepting transactions
- Simply pay 2.6% +10 per in-person transaction
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