You use your phone to do just about everything, from sending emails to watching your favorite sports team. You can also use it in lieu of pulling out cash, inserting your credit or debit card or manually typing in your payment information online. With a digital wallet or payment app, you can simply tap your phone on a store’s payment terminal or click a button on an e-commerce site, and voila! The transaction is complete.
Digital wallets and payment apps are becoming increasingly popular. The Consumer Financial Protection Bureau estimates tap-to-pay transactions from digital wallets will soar by 150% between now and 2028. But which one should you rely on? Read on to learn more about some of the best digital wallets and payment apps that can change the way you pay.
Best digital wallets and payment apps
To determine the best digital wallets and payment apps, we looked at a wide range of mobile tools with a focus on their specific features, customer reviews in both Google’s and Apple’s stores, rewards and fee structures.
It’s important to note that true digital wallets do a bit more than standalone payment apps. However, depending on your lifestyle and preferences, you may need more than one app to manage your information and make your payments.
| App | Available for | Pros | Cons | Best for |
| Apple Wallet | iOS and web | Apple enthusiasts | ||
| Google Wallet | Android and web | Non-Apple enthusiasts | ||
| Zelle | iOS, Android and web (but check your banking app first to see if you have access) | Sending money to friends instantly | ||
| Venmo | iOS, Android and web | Bigger spenders | ||
| PayPal | iOS, Android and web | Earning online rewards | ||
| Cash App | Android, iOS and web | Sending stocks and bitcoin |
Apple Wallet
- Available for: iOS and web
- Pros:
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- Simple setup for existing iPhone users
- Ability to earn up to 3% cash back if you open an Apple Card and use Apple Pay
- Ability to send money to other Apple Wallet users
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- Cons:
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- Only available for Apple users
- In-store checkout can be a bit clunky
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If you use an iPhone, you don’t need to do anything to get an Apple Wallet -- it’s already there. The app combines convenient mobile payment services with digital wallet capabilities like storing your hotel key, public transit card and concert tickets.
Plus, if you’re looking for a new credit card, the Apple Card offers up to 3% cash back at major retailers like Uber and Walgreens and 2% cash back at other merchants when you use Apple Pay. (You’ll earn 1% at merchants that don’t accept Apple Pay.)
The biggest downside with Apple Wallet is it’s only available to Apple users.
Google Wallet
- Available for: Android and web
- Pros:
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- Syncs with your Google accounts to help track data for boarding passes and hotel check-in dates
- Ability to send money to non-Google Pay users
- Simple in-store payment experience
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- Cons:
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- iOS version (Google Pay) is limited
- Only works with select banks and credit card issuers
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Google Wallet feels a lot like Apple Wallet but for Google lovers instead. This digital wallet app has a few extra bells and whistles, such as Google Map-enabled receipt tracking, which can be handy for reimbursements, and even the ability to start your car if you drive a vehicle that offers a digital key. It also recently announced new features, including the ability to store passes like your gym membership, library and health insurance cards.
Google Wallet incorporates Google Pay features, such as tap to pay, but you can only add a credit card or debit card if your bank or credit card issuer offers contactless payments. And while iOS users can use the Google Pay app, they won’t have access to the full capabilities of Google Wallet.
Zelle
- Available for: iOS, Android and web (but check your banking app first to see if you have access)
- Pros:
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- Already part of 2,000+ banking apps
- Real-time payments mean your money arrives in a flash
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- Cons:
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- Daily transaction limits vary by bank
- Target for scammers
- Inability to cancel payments
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One reason Zelle stands out: You probably don’t need to download the app to start using it. Zelle has already been integrated into more than 2,000 different banking apps, and sending and receiving money with the service is super simple. You just need the recipient’s phone number or email address, and you can send cash to their bank account.
Zelle’s downsides include payment limits -- which vary from bank to bank -- and a lack of fraud protection. Other mobile payment apps, such as PayPal, offer reimbursement policies to protect you from scams. You also can’t cancel Zelle payments if the recipient already has a Zelle account. Apps such as PayPal and Venmo offer cancellation or refunds in certain situations.
Venmo
- Available for: iOS, Android and web
- Pros:
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- Ability to send up to $60,000 per week
- Extra rewards options with a Venmo Debit Card and Venmo Credit Card
- Ability to buy and sell crypto
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- Cons:
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- Transaction information is publicly visible by default
- Social media features like likes and emojis may irritate some users
- Target for scammers
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If you’d feel limited by Zelle’s transaction limits, Venmo may be a better fit for you. With identity verification, you can send up to $60,000 per week using this service. In addition to sending money and making payments, Venmo also lets you dabble in crypto investing. Keep in mind, though, that crypto is risky.
It’s worth noting that Venmo transaction information is public by default. The transaction amount is private, but anyone can see the sender and recipient names, timestamp and any payment notes. You can set this information to private, but you must do so manually.
PayPal
- Available for: iOS, Android and web
- Pros:
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- Ability to cash in credit card points while shopping online
- Additional cash-back rewards with certain retailers and with PayPal credit card
- Easy ability to send money to friends
- Ability to buy and sell cryptocurrency
- Buy now, pay later option
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- Cons:
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- Long list of fees for business transactions
- Account freezes
- Numerous offers for more PayPal services
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There are loads of reasons to use PayPal, but the biggest reason it’s on our list is the ability to automatically cash in your credit card reward points when you’re shopping online. PayPal Rewards syncs with major credit card issuers like Chase, Capital One, Citi and American Express to allow you to put your points toward online purchases. Plus, PayPal also offers extra cash-back rewards with certain retailers, so you can rack up extra points for your shopping.
PayPal does charge fees for certain business transactions and instant access to payments. It also has strict fraud protections that could result in your account being frozen.
Cash App
- Available for: Android, iOS and web
- Pros:
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- Ability to send cash, stocks and bitcoin to anyone with a phone number or email address
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- Fee-free sending to recipients in the UK
- Helpful savings goals trackers
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- Cons:
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- Picking stocks isn’t simple, no matter what the app tells you
- Top target for scammers
- Recipients must create a Cash App account to accept payment
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You’ll often read about Cash App in the same sentence as many of the other names on this list, most notably Venmo and PayPal. But the big difference with Cash App is the ability to send stocks and bitcoin to your friends and its fee-free international transfers to recipients in the UK.
You may want to pair Cash App with one of the first two names on this list, though. Using Cash App for in-store purchases is best done by adding your Cash App debit card to Apple Pay or Google Pay.
What are payment apps?
Mobile payment apps are designed to help you pay for things without using physical cash or cards. Many merchants accept payment apps in their stores and on their websites. Payment apps also allow you to send and receive money from individuals like friends and family.
What are digital wallets?
Think of everything that’s in your physical wallet -- your credit and debit cards, health insurance card, the gift card your parents gave you as a holiday gift and more. A digital wallet is designed to store those kinds of items without having to carry anything besides your phone.
In some cases, a digital wallet serves double duty as a payment app. For example, Google Wallet and Apple Wallet are digital wallet apps that also include mobile payment services.
Pros
Convenience: Many payment apps and some digital wallets make it easy to pay for purchases and send money to friends and family without having to carry multiple cards.
Safety: As long as your phone has a hard-to-crack PIN or additional security measures, it’s tough for a thief to steal any of the data in your app. Reputable digital wallets and payment apps come with top-notch encryption to protect your information.
Simplicity: Digital wallets let you leave your physical wallet at home and avoid dealing with crumpled boarding passes, physical hotel keys and other items that can weigh down your pockets.
Cons
Ease of spending: The downside of fast, convenient payment is that it makes it easier to spend without thinking twice. If you start using one of these apps, make sure you stay focused on budgeting.
More big tech in your life: If you’re tired of relying on tech giants like Google and Apple, payment apps are just one more way for them to keep you tethered to their services. Plus, some of them have restrictions that only allow you to work with similar devices. For example, Apple Wallet’s peer-to-peer payments only work with other Apple devices.
Potential phone issues: Remember the last time you were heading home and your phone’s battery was dangerously low? If it drains too quickly and you can’t access your transit card, you might be walking instead.
Security isn’t foolproof: Although you can keep your data safe with a strong PIN, passcode or other security measures, if someone gains access to your phone and digital wallet, you might find yourself on the phone with your bank and multiple credit card companies trying to freeze your accounts.
Are mobile wallets and digital payment apps safe?
Yes, reputable mobile wallets and digital payment apps are generally safe. Their enhanced encryption standards offer even stronger protection than you might find with physical cards, so you can feel comfortable using them. However, phones get lost and stolen, so be sure you have the ability to remotely wipe your device and/or cancel your payment information if you find yourself in this situation.
FAQs
A payment app stores your payment information and allows you to make payments online, in person and often to send money to friends and family. A digital wallet offers the tools of a payment app but with more features so you can safely store documents you need, such as your health insurance card, AAA card and boarding passes.
You can use your phone to pay for in-store purchases at many retailers. However, there are still stores that don’t accept mobile payments. For example, Apple Pay is accepted at more than 85% of retailers in the US, which means there are still plenty of businesses that require you to take cash or a card out of your physical wallet.
While your phone may be the most common device to use for digital payments, some digital wallets and payment apps work with other smart devices, including smartwatches and Fitbits.
Methodology
We looked at a wide range of established and emerging digital payment services with a focus on positive customer ratings (at least a 4 out of 5 stars in the Google Play Store and/or Apple Store). Additionally, we focused on services with widespread acceptance that offered the ability to use them in as many places as possible.