Apple Pay: How to make a digital payment on your iPhone or Watch

• You can make mobile payments with Apple Pay by adding credit or debit cards to your Apple Wallet.
• You should always have a backup plan in case stores don't accept mobile payments like Apple Pay.
• If you don't have a compatible credit card, you can use Apple Pay with a prepaid debit card.

Apple Pay is a service that lets you make mobile purchases using your existing credit cards. Just load your credit cards into the Apple Wallet app on your iPhone, and you can complete purchases in seconds without ever pulling your wallet or credit cards out of your pocket.

Don't confuse Apple Pay with Apple Pay Later, a similarly named buy now, pay later loan program that's built into Apple Pay. Here is everything you need to know about using Apple Pay, as well as Apple Pay Later.

How do you use Apple Pay?

Apple Pay works in conjunction with the Apple Wallet app, which you can find on most Apple devices, including the iPhone, Apple Watch, and Mac computers. After loading your Apple Wallet app with one or more credit cards, you can use Apple Pay to complete purchases at point-of-sale terminals in many restaurants, grocery stores, and retail stores. Often, there will be a sign indicating that the terminal accepts Apple Pay or tap-to-pay credit cards.

To make a payment, double-press the side button of your phone and use Face ID or Touch ID to authenticate yourself. This keeps a stranger from using your phone to make purchases with your credit cards.

Your default credit card will be selected automatically. If you want to use a different one, scroll through the list and select a different card.

Finally, hold your phone near the terminal's credit card reader until you see a checkmark appear. Your transaction is complete.

How can I access my Apple Pay account?

You can check your Apple Pay account balance and transaction history anytime by looking in the Apple Wallet app. Apple Pay tracks the account information for each card you use with Apple Pay separately.

On your iPhone, start the Wallet app and tap the card you want to review. You should be able to see details like your balance and transaction history.

Is Apple Pay Later a credit card?

No. Apple Pay Later is technically a one-time loan, not a credit card.

In practice, Apple Pay Later is a buy now, pay later (BNPL) financial service that works with your existing debit card.

Apple Pay Later allows you to spread out the cost of an item over a series of payments. You make the first payment when you purchase the item using any debit card already loaded in your Apple Wallet. Then, you make three additional payments — one every two weeks — over six weeks.

What is the difference between Apple Pay and Apple Pay Later?

Apple Pay is a mobile payment system that leverages your existing credit or debit cards to make contactless payments in retail stores. Apple Pay also works in apps and online at select stores. Apple Pay Later, on the other hand, is a loan option you can choose while making a payment within Apple Pay.

Unlike Apple Pay, Apple Pay Later only works with a debit card and is only available when making a purchase within apps and online when making purchases in Safari. If you select Apple Pay Later when making a purchase, you must apply for a new loan each time you use the service.

How do I set up Apple Pay without a card?

As a general rule, Apple requires you to use a traditional credit or debit card with Apple Pay. But if you don't qualify for a card or don't have one that works with Apple Pay, there's an alternative: You can add money to Apple Cash from a reloadable, prepaid debit card.

To set it up, start by purchasing a prepaid card that's compatible with Apple Pay. (Visa and Mastercard offer them). Register the card and load some money onto it.

Next, add it to your Apple Wallet by tapping the Plus sign at the top right of the app. Then, choose Debit or Credit Card and follow the instructions to add the card.

After you've added the card, tap the Apple Card card, tap the three-dot button at the top right, and then choose Add Money. Choose the amount you want to add from your debit card, and you can now use Apple Cash to make Apple Pay purchases.

Who takes Apple Pay?

While support for Apple Pay varies, Apple Pay is commonly accepted at many retail stores.

Look for contactless payment terminals at checkout at many popular retail chains like Best Buy, Bloomingdales, GameStop, Kohl's, Office Depot, Staples, Trader Joe's, Walgreens, Safeway, Target, Costco, Whole Foods, and CVS.

Fast food restaurants like Dunkin, McDonald's, and Taco Bell take Apple Pay as well, and you can use Apple Pay with many transit systems in cities like LA, New York, Portland, Boston, and San Diego.