By Funto Omojola, NerdWallet
Mobile wallets that allow you to pay using your phone have been around for well more than a decade, and over those years they’ve grown in popularity, becoming a key part of consumers’ credit card usage. According to a “state of credit card report” for 2025 from credit bureau Experian, 53% of Americans in a survey say they use digital wallets more frequently than traditional payment methods.
To further incentivize mobile wallet usage, some credit card issuers offer bonus rewards when you elect to pay that way. But those incentives can go beyond just higher reward rates. In fact, mobile wallets in some ways are becoming an essential part of activating and holding a credit card. For example, they can offer immediate access to your credit line, and they can be easier and safer than paying with a physical card.
OK, but let’s start with bonus rewards
From a rewards perspective, it can make a lot of sense to reach for your phone now instead of your physical card.
The Apple Card offers its highest reward rates when you use it through the Apple Pay mobile wallet. Same goes for the PayPal Cashback Mastercard® when you use it to make purchases via the PayPal digital wallet.
The Kroger grocery store giant has a co-branded credit card that earns the most when you pay using an eligible digital wallet, and some major credit cards with quarterly rotating bonus categories have a history of incentivizing digital wallet use.
But again, these days it’s not just about the rewards.
Instant credit access
Mobile wallets like Apple Pay, Samsung Pay and PayPal can offer immediate access to your credit line while you wait for your physical card to arrive after approval. Indeed, most major issuers including Bank of America®, Capital One and Chase now offer instant virtual credit card numbers for eligible cards that can be used upon approval by adding them to a digital wallet.
Additionally, many co-branded credit cards — those offered in partnership with…
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