How to pay with your phone or watch in Europe?
Contactless payment with a smartphone or connected watch is becoming increasingly common. You can use a mobile payment application from your bank or device manufacturer, downloaded to your phone or watch. The app then allows you to register your bank card numbers and to pay for purchases in France and abroad. But how does contactless mobile payment work? Is there a payment limit? What are the risks? Find out in this article.
- How does mobile payment work?
- In which shops can you pay with a smartphone or watch?
- No payment limit
- Is there a fee for mobile payment?
- Are there any advantages to paying with your smartphone or connected watch?
- Is it risky to pay with your smartphone or watch?
- Beware of fraud
- What to do if you lose your phone or watch?
- Tips for making your payments more secure
How does mobile payment work?
To pay with a smartphone or a connected watch in the EU, you must first check whether your device is equipped with an NFC (Near Field Communication) chip. This technology allows the exchange of data. All you have to do is bring your mobile phone or watch close to the payment terminal of the trader.
Please note that for travels to the USA, your device will need another technology using MST (Magnetic Secure Transmission).
Next, you must choose a payment application. All the major banks, online banks and neo-banks, both French and European, offer them. Smartphone and connected watch manufacturers also have their applications. Compare the offers and services before deciding.
Once you have installed the application, add one or more bank cards. Scan your bank card(s) or enter the numbers manually, and then select the card to make purchases. You must agree to the terms of use and accept the authentication request from your bank.
Before each possible contactless payment, you need to authenticate yourself (fingerprint, code, etc.). Then you can select the card in the application and bring your device close to the terminal. And it works even when the smartphone is not connected to a network or Wi-Fi.
Mobile payment by QR Code
In addition to NFC technology, there is contactless payment by QR Code. If your payment application provides this and if the merchant has a cash register or payment terminal that can display a QR Code, you can validate a payment by scanning the QR Code.
In which shops can you pay with a smartphone or a watch?
In principle, it is possible to pay with your smartphone or your connected watch in all shops, in France and abroad. The only condition is that they offer contactless payment by bank card. Do not hesitate to ask the shopkeeper before making your purchases. Restrictions may sometimes exist for watches.
No payment limit
Contactless payment by bank card usually has a limit of 50 euros per payment. However, payment with a smartphone or connected watch has no ceiling.
In fact, connecting to a phone meets the requirements of strong customer authentication imposed by Europe to secure payments. The phone used for the transaction is designated as a trusted device. It uses biometrics or a secret code to validate the payment via an application. It is therefore possible to pay with a phone or a watch for purchases of 100, 200 euros or more.
Be careful with large sums of money or operations considered risky by your bank! You may have to type your confidential code or a password in addition to your traditional authentication (biometrics, secret code....). Consult your bank's general terms and conditions for more information.
Is there a fee for mobile payment?
No. Mobile contactless payment often does not involve any fees.
But find out about :
- the fees charged by your bank, especially for purchases outside the euro zone.
- the number of payments authorised per day, per week and per month.
- any limits you have set yourself in the payment application.
Are there any advantages to paying with your smartphone or connected watch?
Mobile payment applications offer other associated services. This includes payment history, detailed purchase information, dematerialised tips, instant payments between individuals, promotional offers, etc.
Some phone manufacturers provide a "wallet" system where you can store your various payment cards as well as your loyalty cards, restaurant tickets, train tickets etc.
Compare the services included in each application before deciding.
Good to know
Since March 2024, The EU Digital Markets Act (DMA) applies to a number of major platforms designated by the European Commission.
Under these new regulations, these platforms can no longer impose certain services, such as payment services, on app developers.
For example, you may now use Google Pay on an Apple smartphone.
Is it risky to pay with your smartphone or watch?
Contactless mobile payment is secured by authentication methods that are difficult to reproduce (fingerprint, face shape, voice recognition etc.). It is therefore difficult for a person to pay with a smartphone that is not their own.
Beware of fraud!
Some scammers don’t hesitate to call or text consumers by masking their identity and pretending to be a trusted person. This is known as "spoofing" or "smishing" (phishing by sms). In such frauds, the victim believes that they are talking to their bank by phone or SMS, for example. Therefore, they agree to give their bank card numbers and authorise the coupling with a payment service. Once the scheme has been carried out, the fraudsters can pay large sums of money with their smartphone in which the victim's bank card is stored.
Tips:
- Never give out your card numbers, a password or a secret code over the phone. No bank advisor will call you to ask for this or to validate a transaction.
- If you are a victim of fraud, cancel your card. Also inform the payment service (ApplePay, Google Pay, Garmin Pay, Paylib, etc.).
- Ask your bank for a "chargeback" (refund) on your card for an unauthorised transaction.
- Dispute fraudulent debits and ask your bank for a refund in writing within a maximum of 13 months. The delay is 70 days for a fraudulent payment outside the European Economic Area.
- Keep as much evidence as possible to prove your good faith and to challenge your negligence. It will be useful if you have to take your case to court.
What to do if you lose your phone or watch?
While a connected watch is harder to lose than a phone, no one is immune to theft.
To prevent any fraudulent payments, cancel your bank card as soon as you realise the loss or the theft. Also inform your phone operator and the mobile payment service. In the event of theft, remember to report it to the police.
Tips for making your payments more secure
- Lock the payment application with a password or identification method separate from your phone.
- Always check the battery life of your phone and especially your connected watch. Especially if you are using it as your only payment method.
- Write down your credit card numbers and your bank's customer service number somewhere other than your phone.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.