Two ways to pay without a card number

You are at checkout and the online shop offers Apple Pay. Next to the usual fields for card number and expiry date, you see a single button that only asks for your fingerprint, your face or your screen lock. Apple Pay and Google Pay do not replace your card; they sit in front of it as an extra layer. In the background there is still a perfectly ordinary credit or debit card on file, you just no longer type it in when you actually pay.

For customers, the main difference is that it feels quicker. What actually happens behind the scenes, though, differs more from a classic card payment than that short moment at checkout would suggest.

How the payment works technically

When you add a card to Apple Pay or Google Pay, the real card number is not stored with the retailer. Instead, a so-called device account number is used, a stand-in value that is only valid on your specific device. On top of that, the device creates a one-time code for every payment, which only works for that single transaction. So the online shop never sees your real card number or a reusable code, only this one-off proof that an authorised payment has taken place.

That has a useful side effect: if a shop's database is ever compromised, there is no record in it that could be used later to trigger a new payment. An intercepted one-time code is worthless on its own, because it will not work a second time.

What this means at checkout

At checkout, the shop usually shows you a summary with the amount and the delivery address you last used, before you confirm the payment with your fingerprint, face recognition or device passcode. This biometric or device-bound confirmation completely replaces the usual entry of card number, expiry date and security code. You can store your address and contact details in both systems in advance, so that buying for the first time in a shop you do not know often comes down to this one confirmation step.

One difference between the two systems mainly concerns the devices they run on: Apple Pay is tied to Apple devices, while Google Pay works across Android smartphones and in supported browsers. Whether a particular shop offers either option at all is entirely up to the shop.

Buyer protection stays tied to the card behind it

A common misunderstanding is that Apple Pay or Google Pay come with their own buyer protection. In fact, your protection if something goes wrong with an order still depends on the card stored in the background. If you pay with a credit card, the same rules apply to a possible chargeback as if you had paid with that card directly. With a debit card, whatever generally applies to debit cards applies here too. So Apple Pay and Google Pay change how a payment is transmitted, but not which rights you have towards your bank if there is a dispute.

Worked example: the same basket, two ways to pay

Say a basket is worth 85 euros and a discount code brings the total down to 76.50 euros. Whether you then confirm that amount by entering your card details the classic way or through Apple Pay or Google Pay makes no difference to the final price, because the discount is applied to the basket before a payment method is even chosen. The only difference lies in how many fields you have to fill in at checkout, and whether you type your card details in again or simply give a confirmation on your own device.

Where the limits of both systems lie

Not every online shop supports Apple Pay or Google Pay, even though both have become far more widespread in recent years. If neither option appears at checkout, you are left with entering your card details the classic way or one of the other payment methods on offer. Both systems also need an up-to-date, supported device with a screen lock or biometric recognition set up. On an older device without these features, neither option can be set up, regardless of whether the shop offers it.

Another point concerns shared devices: if a card is stored in Apple Pay or Google Pay on a family tablet or a shared computer, anyone with access to the unlocked device can pay with it, unless the biometric lock is set up for one person only. With shared devices, it is therefore worth checking carefully whose fingerprint or face is actually registered.

How this fits into a wider comparison

A comparison of payment methods in online shops shows where Apple Pay and Google Pay sit alongside cards, PayPal and paying by invoice, especially when it comes to security and how quickly a payment goes through. What buyer protection when shopping online actually covers in a dispute still depends on the card behind it, as does the question of when a chargeback through your card issuer is an option at all. Some shops also tie a discount to a particular payment method, which can include digital wallets.

Frequently asked questions

Is Apple Pay safer than typing in a card number directly?

In practice, Apple Pay is considered safer, because the shop never receives the real card number, only a one-time code that is valid for that one payment. An intercepted code cannot be used again later.

Do I need a separate account for Apple Pay or Google Pay?

No. Both systems simply sit in front of a credit or debit card you already have and have added to your device beforehand. You do not need an extra account with its own balance.

What happens if my device is stolen?

Without the screen lock or biometric confirmation you set up, no payment can be made through Apple Pay or Google Pay. You can also block the stored cards through the provider's account settings as soon as you notice the loss.

Does the same right of withdrawal apply when I pay with Apple Pay?

Yes. Within the EU, the 14-day right of withdrawal for online purchases is attached to the order itself, not to the payment method you chose, so paying with Apple Pay, Google Pay or by typing in your card makes no difference. Outside the EU, for example in the UK, the US or Canada, the rules are set nationally and can differ.