Paying using your smartphone: how does it work?

Mobile payments with smartphone, wallet and card

You can pay using almost all newer smartphones. That’s because they have a feature known as Near Field Communication (NFC). That means they can make a contactless payment connection at the cash register using radio waves. 

How each mobile payment method works is dependent on the financial service provider offering the service. Most banks offer card-based payment methods. The means that you can save a digital debit or credit card from your bank in a “virtual wallet”. Your digital wallet may be an app provided by your bank, but you may also be able to use other digital wallets, such as those offered by Google Pay or Apple Pay. 

Your bank will inform you which wallets will work with which cards. Once you have decided on the combination you plan to use, you will receive step-by-step instructions on how to set up the wallet on your smart phone.

Paying wirelessly

If you see a wave-symbol like the one used for wifi at the cash register in a shop, that means you can pay using your phone. The symbol means that the shop accepts contactless payments by debit or credit card. 

Here is a detailed description of the process: the person at the register puts the payment into the point-of-sale terminal, which activates the NFC connection – for your transaction only. You hold your smartphone up to the terminal; it can communicate with the terminal over a distance of up to four centimetres. 

To ensure the payment is secure, you authorise the payment with a biometric safety measure, either fingerprint or face recognition (Face ID). Your bank will provide information on the specific options you have with your wallet and how they work. 

If your payment is successful, you will get a message from your smartphone and see confirmation on the point-of-sale terminal. And of course, you can use some digital wallets to pay online as well as in the shops.

If your smartphone is stolen: freeze your card

If you lose your smartphone, or if it is stolen, it is very important that you freeze your digital card. Your bank has information on how to do this, usually via telephone, online banking or an app. In an emergency, you can also use Germany’s national card freezing numbers, such as 116 116. You will also have to deactivate the card on your smartphone if you are planning on switching devices. 

One final tip: If your smartphone is lost or stolen, remember to contact your mobile provider and have them deactivate its SIM card. This protects your data and prevents nasty surprises once payment is due!