Apple Passbook (iOS): Instead of focusing on e-payments, Passbook - included in iOS 6 - serves as a digital repository for traditionally paper based documents such as boarding passes, movie tickets, gift cards, and coupons. The app collects information from participating partners and displays that to you, based on your location. For example, it will notify you of a gate change when you arrive at the airport, or of an about-to-expire coupon as you enter a store. It doesn't serve as a point-of-sale or online payment processing tool, but you can use it to, say, buy movie tickets through Fandango; the ticket seller can then scan your code in Passbook instead of generating paper tickets at the theater.
Google Wallet (NFC enabled Android devices): The idea behind Google Wallet is simple. Just install the free app on your smartphone and set up a PIN activated account that includes your credit, debit, and loyalty card information. You are now ready to pay in stores by simply tapping your phone on the retailer's NFC (near field communications) terminal, or online by clicking a single button. But the app has some big limitations.
For starters, Google Wallet works only with a modest list of retailers. In addition, it requires you to use a device with an NFC chip currently, the Samsung Galaxy S III (Sprint), Galaxy Note II (Sprint), Galaxy Nexus (Sprint, or unlocked), Nexus 4, and a few others are eligible. A competing app, Isis, which uses NFC technology but offers different partners, was also recently launched, with plans to expand.
LevelUp (Android, iOS): This app combines e-payments with rewards. Install the free app, link a credit or debit card to your account to get a personalized code, and scan the code at participating vendors to pay. You'll earn rewards to spend at each new vendor you visit, and savings for repeat visits. The biggest drawback is the limited number of participating vendors.
PayPal (Android, iOS): True to the company's origins, PayPal's free mobile wallet app serves primarily as an easy way to send cash to a friend or settle small transactions. But PayPal is getting more serious about the payment processing arena; it has beefed up services and retailer partnerships. You can use the app to send and request money, add cash to your account by photographing checks, and pay for purchases at the limited number of vendors that participate in the PayPal Here program.
Square (Android, iOS): This free app allows you to pay for items at participating vendors merely by giving the clerk your name or, at participating Starbucks stores, by scanning a QR (quick response) code. Download the app on your smartphone, set up an account that includes your credit card information and photo, and check out the list of vendors in your area. When you're ready to pay, tap the 'Pay Here' button and tell the checkout clerk your name to verify your identity. Your payment will process automatically. This app also integrates with Passbook for iPhone users. The downside? The number of participating vendors is still quite small.
