5 Ways To Pay With Your Phone in Canada

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With digitalization comes different means of executing transactions away from the conventional methods. There are different ways you can make payments with your smartphone in Canada, and this article will be recommending five of them.

Mobile Payment in Canada

Paying with your smartphone or other mobile devices is known as mobile payment. It is an easier and more convenient way to make payments but is not without its risks. You can make payments with your phone in Canada in the following ways:

1. Mobile Payment Applications

There is a wide range of mobile payment applications you can use to make payments on your phone. You can use these applications to make payments conveniently and remotely.

Mobile payment applications may be from your financial institution or mobile wallets like Google Pay or PayPal. However, not all mobile apps are accepted everywhere, and they have their limitations. It is best to make use of your financial institution’s mobile app, if available.

To access these applications you have to download the mobile payment application and link your account or your card (credit, debit, or prepaid). There are different ways to use mobile payments apps, and we’ll discuss some of them below.

2. Tap Payment

Tap payment is also known as contactless payment and involves the use of near-field communication (NFC) technology. You can make a contactless payment with your phone through payment applications from your financial institution or mobile wallets.

The payment application needs a storage feature to store your card information (credit, debit, or prepaid) on your mobile device. Also, payments are charged or deducted depending on your choice. Your payment application can have your payment;

  • Charged to your bank account
  • Billed to your credit card account;
  • Deducted from your prepaid card; or
  • Added to your monthly cell phone bill.

However, tap payment is only possible in stores or places with payment terminals with the tap payment feature. When you want to make a tap payment, you have to launch the app and hold your phone close to the payment terminal until the payment is completed. Some transactions may require you to enter a password or scan your fingertips.

 3. e-Transfer

Also known as text message transfer, email transfer, or Interac e-transfer, e-transfers can be accessed through your financial institution’s online banking website (if available). It allows you to send money to people with Canadian bank accounts.

Although it is a convenient way of payment, it is risky, and you are highly prone to email fraud. Hence why it is advisable to know the mobile number and email address of the person you want to send a money transfer to before initiating the payment.

Also, you must set a security question for the person to answer (you should discreetly send the answer to the person, preferably not via email). The person will then receive an alert by text or email.

If you are receiving money through an email transfer, you should follow the instructions carefully. If the transfer is unexpected, reach out to the sender to confirm the transfer to avoid fake transfers and scams.

Alternatively, some financial institutions have the Interac e-transfer Autodeposit feature that automatically deposits the money into your account without the need to answer any security question.

It is important to note that you can’t cancel an e-transfer that has already been deposited. Also, there may be limits to the amount you can transfer.

4. Quick Response Payment

With this form of payment, you need a quick response code (QR code). The QR code consists of tiny black squares in a pattern unique to each payment. To make a QR payment with your phone, you will need to display a QR code on your phone screen, and the merchant will scan it with their barcode scanner or any other scanner.

Once the code is confirmed, it will link you to the payment information you need to make the payment. You can get QR codes from payment applications or gift cards for the merchant you want to purchase from.

 5. In-app Purchases

You can use your phone to buy things or pay for services within an application. An ideal example will be games that require you to pay for extra features for a better gaming experience.

To initiate this kind of payment, you will link the application to a payment source to make the payment. The payment source can be your;

Risks Involved in Mobile Payment

There are risks involved in using your phone to make payments, not just in Canada but in other parts of the world. These risks include identity fraud or malicious software (malware). To avoid fraud and/or financial malware, you should take the following steps:

  • Update your phone regularly for improved features, which include security.
  • Don’t click on links in suspicious messages or call unknown numbers even if they claim to be from your financial institution. The links can be malicious, and hackers will use the opportunity to get your account details or personal information. It is advisable to steer clear of suspicious applications.
  • Avoid using texts or emails to send personal or sensitive information like your account details and passwords.
  • Beware of public and unsecured WiFi. You should avoid using them for transactions or accessing the details of your account. Connect to public WiFi you can trust. This also applies to Bluetooth connections because hackers prey on weak and insecure connections.
  • Lock your phone by protecting it with a strong PIN or password. Alternatively, you can use a fingerprint or face ID to lock your device if it has the feature.

Conclusion

Mobile payments are very convenient and easy to do, but they come with risks. However, if you take extra care to ensure security, you can make payments with your phone with no stress at all. Still, a lot will depend on the extent to which your financial institution or the merchant you are purchasing from allows such payment methods.

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.