You can take credit card payments on your phone by downloading a mobile payment app and either using a small card reader that pairs with your phone or using your phone’s built-in NFC chip to accept contactless tap payments with no extra hardware at all. Most people can be set up and processing payments within minutes.
Two Main Ways to Accept Cards on Your Phone
There are two approaches, and you can use both simultaneously depending on the situation.
The first is a portable card reader, a small device (usually about the size of a domino) that connects to your phone via Bluetooth. You plug it in or pair it, open the provider’s app, and your customer can swipe, dip a chip card, or tap a contactless card against the reader. This handles every type of card transaction, including customers who still carry chip-only cards without contactless capability.
The second is Tap to Pay, which uses your phone’s built-in NFC antenna to accept contactless payments directly on your screen. No extra hardware needed. Your customer holds their card, phone, or smartwatch near your device, and the payment processes through the app. This is the fastest way to get started since there’s nothing to order or charge. The tradeoff is that it only works with contactless-enabled cards and digital wallets, so you can’t accept a traditional chip-insert or magnetic swipe payment this way.
Which Phones Support Tap to Pay
iPhones from the XS and later (running iOS 16.4 or higher) support Tap to Pay on iPhone through most major payment providers. On the Android side, your phone needs to be running Android 9 or higher and have an NFC chip, which most phones released in the last several years do. Square notes that a few older Samsung models like the Galaxy S8, S9, and Note 9 are not compatible even if they meet the software requirement.
The easiest way to check is to download the payment app you want to use and look for the Tap to Pay option in settings. If it appears, your phone is compatible. Make sure developer options are turned off in your device settings, as that can interfere with the feature.
Popular Apps for Phone Payments
Several providers offer mobile payment processing, and they all follow a similar model: free app, no monthly fee on the basic plan, and a flat percentage taken from each transaction.
- Square: One of the most widely used options. The app is free, and Square offers a free magstripe card reader to new users (chip and contactless readers cost around $50 to $60). In-person transaction fees are typically 2.6% plus 10 cents per transaction. Square also supports Tap to Pay on both iPhone and Android, invoicing, and payment links you can text or email to customers.
- PayPal Zettle: Works similarly to Square with a free app and a card reader you purchase separately (usually around $30 to $80 depending on promotions). In-person processing fees run about 2.29% plus 9 cents per transaction. Good if you already use PayPal and want funds flowing into the same ecosystem.
- Stripe: More commonly used for online payments, but Stripe also offers in-person processing through its Terminal product. It’s a strong choice if you already run a website or app that uses Stripe and want everything under one account.
- Shopify POS: If you sell products through a Shopify online store, the Shopify POS app lets you take in-person payments on your phone and keeps your inventory synced across both channels. Processing rates start around 2.6% plus 10 cents for basic plan users.
All of these deposit funds into your linked bank account, typically within one to two business days. Some offer instant transfers for an additional fee (usually around 1% to 1.5% of the transfer amount).
What You Need to Get Started
Signing up is straightforward and doesn’t require a traditional merchant account from a bank. Here’s what the process looks like with most providers:
- Download the app from the App Store or Google Play.
- Create an account using your email address.
- Provide business details including your business name (or your own name if you’re a sole proprietor), your business type, and what you sell. If you have a registered business, you’ll enter your EIN. Sole proprietors can typically use their Social Security number.
- Link a bank account where your processed funds will be deposited.
- Verify your identity. Payment processors are required to verify who they’re doing business with, so expect to confirm your name, date of birth, and address. Some providers may ask for a photo of your ID.
Most people complete the entire setup in under 15 minutes. Approval is usually instant for basic accounts, though the provider may place temporary limits on transaction volume until your identity is fully verified.
Processing Fees to Expect
Every provider takes a cut of each transaction. For in-person payments (card reader or Tap to Pay), the standard rate across major providers falls between 2.29% and 2.75% plus a small fixed fee per transaction, usually 9 to 10 cents. On a $100 sale, that means you’d pay roughly $2.40 to $2.85 in processing fees and receive the rest.
Payments you key in manually (typing in the card number because the customer isn’t present or their card won’t read) cost more, typically around 3.4% to 3.5% plus 15 to 30 cents per transaction. This higher rate reflects the increased fraud risk when the physical card isn’t verified.
Most basic plans have no monthly subscription fee. You only pay when you process a sale. Premium tiers from providers like Square and Shopify offer lower per-transaction rates in exchange for a monthly fee, which can make sense once your sales volume reaches several thousand dollars per month.
Beyond Card Swipes: Other Payment Options
Once you have a payment app installed, you’re not limited to face-to-face card transactions. Most providers also let you send invoices by email, generate payment links you can text to a customer, create QR codes that customers scan to pay, and set up recurring billing for repeat clients. These all process through the same app and the same account, so your sales reporting stays in one place.
If you’re a freelancer, service provider, or small vendor at a market, the combination of Tap to Pay for in-person sales and payment links for remote customers covers nearly every scenario without needing separate tools.
Card Reader vs. Tap to Pay: Which to Choose
If most of your customers pay with contactless cards, Apple Pay, or Google Pay, Tap to Pay alone may be all you need. It’s free, requires no hardware, and works immediately. The experience feels seamless for both you and the customer.
A physical card reader is worth the $30 to $60 investment if you regularly encounter customers who still insert chip cards or if you process a high volume of transactions. Card readers also tend to have slightly more reliable connections in noisy wireless environments like outdoor festivals or busy retail spaces. Many sellers start with Tap to Pay and add a reader later if they find they need one.