Mobile payments are here to stay. An estimated 4.5 billion consumers worldwide used digital wallets in 2025, and 111.8 million U.S. smartphone owners used contactless mobile payments in 2024. The total transaction value of US contactless mobile payments is expected to reach $1 trillion by 2027.

This shift is creating more opportunities for businesses to engage with customers and adapt to their transaction preferences. Professionals across various sectors—including independent businesses, freelance consultants, fitness coaches, and home service providers—are turning to mobile payments to provide an easier, more convenient transaction experience for customers. And for platform businesses enabling in-person payments at scale, accepting mobile payments can yield exponential benefits for their bottom line by improving operational efficiency.

Understanding how to accept payments on your phone—and getting started right away—is important to stay competitive in today’s fast-paced, digital-first environment. Businesses can use a mobile payment app that turns your phone into a point-of-sale (POS), enabling contactless tap to pay directly on your device using near-field communication (NFC) technology, or by connecting a small card reader for chip/swipe payments. You can also send payment links or generate QR codes for customers to scan. Here’s a short guide to help you assess your options and get started.

What’s in this article?

• Can you accept credit card payments using a phone?
  
• How to accept customer payments on a phone
  
• When to use: SoftPOS vs. reader vs. virtual terminal vs. QR code
  
• Which types of businesses need to accept payments on a phone?
  
• How much does it cost to accept payments using a phone?
  
• Benefits of accepting payments with a phone
  
• How Stripe Payments can help
  

Can you accept credit card payments using a phone?

Yes, you can accept credit card payments using a phone. Mobile-payment services, such as Stripe, offer businesses this capability. Typically, these platforms have a versatile app that handles the transaction process and helps with additional tasks such as issuing customer receipts and tracking sales.

An important part of this system is the card reader, which pairs with your phone and allows you to accept transactions. A card reader can also work with or be a component of a physical POS terminal.

This reader gives you the flexibility to process payments in different ways: you can swipe the card, insert it, or tap it (if the credit card is equipped to make contactless payments).

When you’re not using a physical card reader attached to your phone, many of these apps can use your phone’s NFC technology, enabling you to accept contactless payments from cards and digital wallets.

How to accept customer payments on a phone

Accepting credit card payments on a phone can happen in several ways. Customers can physically tap cards, or—when paying remotely or without their card—key in card details or use an app-based POS interface on the phone. Below we explain how to accept mobile payments from customers, broken down into two payment categories: in person and remote.

In-person payment methods using phones:

Stripe Reader

Stripe Reader is Stripe’s signature card reader, and you can directly attach it to your phone to create a mobile POS experience. Stripe also offers other card reader options, such as countertop readers and multilane readers with PIN pads. Here’s how it works:

• Order Stripe Reader from the Stripe website.
  
• Once you receive the reader, connect it to your phone via Bluetooth.
  
• Open the Stripe app and follow the instructions to set up your reader.
  
• When a customer is ready to pay, enter the payment amount into the app and then swipe, insert, or tap their card on the reader.
  
• The payment will be processed through Stripe, and the funds will typically be deposited into your bank account within a couple of business days.
  

Stripe Reader is compatible with iOS and Android devices and supports EMV chip cards, NFC technology, and digital wallets. It’s designed for use in the US only. To learn more about how to get started with Stripe Reader to enable in-person payments on your phone, go here.

QR Code-Based Payments

A QR code allows customers to pay from their own devices. Here’s how to do it:

• Download the Stripe app.
  
• Create a Stripe account.
  
• Navigate to Stripe’s QR code generating feature.
  
• Input your payment details, and tap “generate” to create the code.
  
• Test the new code by scanning it on your phone.
  
• When customers scan the QR code, they’ll be directed to the payment process or URL of your choice.
  

Stripe QR codes are compatible with iOS and Android. To learn more about QR code payments, go here.

Tap to Pay

Stripe’s Tap to Pay on iPhone and Android is a version of SoftPOS. It allows businesses to use NFC to accept contactless payments directly on their phones, without any additional hardware. Here’s how to use it:

• Ensure your device is compatible with the Tap to Pay feature. To be compatible, the device will need to be either an iPhone XS or newer or an Android 13 or newer. Users must have the latest operating system, and a WiFi or mobile data connection to process payment.
  
• Customers can pay by holding their card or Apple Pay–enabled device near the top of your iPhone.
  
• Tap to Pay on iPhone will automatically process the payment.
  

To learn more about Tap to Pay with Stripe, go here.

Remote payment methods using phones:

Payment Links

Payment Links is a convenient option for businesses that want to accept payments remotely. It allows businesses to create a full payment page in a few minutes without any coding. Businesses can send the payment link directly to customers and complete transactions with just a few clicks. Here’s how the process works:

• From your Stripe Dashboard, you can create a payment link for a specific product or service.
  
• You’ll receive a URL that you can send to your customers via SMS or email.
  
• Customers click on the link and pay directly from their phone or other device. They can enter their card details or use a digital wallet, such as Apple Pay or Google Pay.
  

To learn more about Stripe’s Payment Links, go here.

Mobile websites or apps

Customers can also use their phone—or yours, if you’re at the same location—to pay directly on your mobile-optimized website or through your business’s app. Below is a brief overview of the steps involved:

• Ensure your website or app is set up to accept mobile payments. If you work with Stripe to accept payments online, you’re already equipped with what you need. If you’re just starting, Stripe provides easy-to-use APIs and SDKs that your developers can use to integrate Stripe’s payment processing capabilities into your website or app.
  
• Customers select their desired products or services and add them to their cart, and then they proceed to checkout.
  
• At checkout, customers can enter their card details or select a digital-wallet option to complete their purchase.
  

Each of these methods is suitable for different business models and customer preferences. Whether you want to enable payments on your phone to simplify your customer transactions or add mobile-payment capabilities as part of a comprehensive global-payment approach, Stripe’s suite of customizable payment solutions is a good place to start. To begin crafting the ideal approach based on your business’s current and future needs, get in touch here.

When to use: SoftPOS vs. reader vs. virtual terminal vs. QR code

Which types of businesses need to accept payments on a phone?

Accepting payments on a phone offers flexibility and mobility for a wide range of businesses and professionals. Here are several common use cases in which mobile payments offer notable advantages:

• Pop-up stores and market vendors businesses often operate in temporary or unconventional locations, such as outdoor markets and event spaces, where it might be impractical to use traditional payment processing equipment. Taking payments on a phone allows these businesses to process transactions wherever they operate.

• Food trucks and street vendors are another group that can thrive with mobile payments, given their small physical spaces and mobile locations. A mobile-payment system simplifies the payment process and enables these businesses to accept card or digital-wallet payments in any location.

• Consultants and freelancers often work remotely or meet clients at various locations, making traditional payment methods less convenient. The ability to take payments on a phone empowers these individuals to take control of their billing and receive payments instantly for their services, without relying on invoicing and bank transfers.

• Home service providers—such as plumbers, electricians, and personal trainers—perform their services at client homes or other offsite locations. Accepting payments on a phone allows home service providers to complete transactions swiftly, reducing the time spent on billing.

• Transportation services, such as ride-hailing apps and private taxis, can create a simple cashless experience for both the driver and passenger by integrating phone-based payments into their systems. This allows them to keep pace with customer preference for contactless payments.

How much does it cost to accept payments using a phone?

The cost of accepting payments using a phone can vary widely based on the provider you choose, the volume of transactions you process, and the types of transactions (in person, online, or over the phone). Here are some typical costs associated with popular mobile-payment providers:

• Setup fees: Many mobile-payment providers do not charge an up-front fee for setting up your account or providing a card reader that connects to your phone. But some providers offer more advanced equipment for an additional cost.

• Transaction fees: Transaction fees are based on a percentage of each sale.

• Card-not-present (CNP) transaction fees: Card-not-present transactions, also known as “keyed-in transactions,” are completed remotely without processing a physical card via a card reader or terminal. If you need to manually type in a card number instead of swiping, dipping, or using a contactless payment method, the fee is typically higher due to increased fraud risk.

• Monthly fees: While many providers charge per transaction, some use a monthly fee model. This could cost $20–$100 or more per month. Providers that charge a monthly fee usually offer additional features such as advanced analytics, inventory management, and customer loyalty programs. Stripe doesn’t charge a monthly fee.

• Chargeback fees: If a customer disputes a charge and it results in a chargeback, the provider might charge the business a fee—usually around $15–$25 per incident.

• Fees for additional services: If you opt for add-ons such as payroll services, ecommerce integration, appointment scheduling, or subscription management, you may incur additional costs.

Each provider’s pricing structure is different, and fees can change. Make sure you review the pricing details extensively before choosing a provider. And while negotiating rates with mobile-payment providers can be challenging, it’s not impossible. In particular, high-volume businesses might have some room for negotiation, depending on the provider.

Benefits of accepting payments with a phone

Accepting payments with a phone offers numerous advantages for businesses that want to simplify transactions and create flexible payment setups. Here are some of the reasons why accepting credit card payments can be beneficial:

• Accepting payments anywhere: Mobile-payment systems allow businesses to accept payments anytime, anywhere. They often require less expensive hardware than traditional POS systems, and some providers even offer free card readers to new customers. This flexibility and affordability is particularly valuable for businesses without a fixed location, such as street vendors, freelancers, and home service providers.

• Get paid faster: Payments processed through mobile devices are typically settled quickly, sometimes within one business day. This can improve a business’s cash flow—especially compared to traditional methods such as paper checks, which can take days to clear.

• Offer a smoother checkout experience: Many customers appreciate the ease of paying with a card or digital wallet instead of cash. Offering a variety of payment methods, including mobile payments, can cultivate the kind of payment experience customers want and lead to repeat business.

• Increase operational efficiency: By integrating with a business’s other systems and infrastructure, mobile-payment systems can streamline operations. They can also automatically update inventory and sales records, reducing manual data entry and the potential for errors. Many mobile-payment systems offer built-in analytics. Businesses can use this data to track sales trends, identify bestselling products, and better understand their customers to inform business strategy.

• Protect customer data: While no system is immune from security threats, mobile-payment providers typically offer robust security measures to protect card information, including encryption and tokenization.

• Contactless transactions: Accepting payments on your phone also means being able to accept contactless NFC payments using enabled cards and digital wallets. Software such as Stripe’s Tap to Pay on iPhone allows businesses to use just their phone—with no additional hardware—to accept and process customer payments in person.

Incorporating mobile payments can offer many advantages for businesses and customers. However, businesses should evaluate their specific needs, customer preferences, and the potential return on investment when choosing a payment system.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.