Activating Your Credit Card? Don’t Skip the Mobile Wallet Step

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 another brand — commonly offer instant card access and can be used immediately on in-brand purchases.

Credit cards typically take seven to 10 days to arrive after approval, so instant access to your credit line can be particularly useful if you need to make an urgent or unexpected purchase. Plus, they allow you to start spending toward a card’s sign-up bonus right away.

Convenience and safety

As issuers push toward mobile payments, a growing number of merchants and businesses are similarly adopting the payment method. The percentage of U.S. businesses that used digital wallets increased to 62% in 2023, compared to 47% the previous year, according to a 2023 survey commissioned by the Federal Reserve Financial Services.

Wider acceptance is potentially good news for the average American, who according to Experian has about four credit cards. While that won’t necessarily weigh down your wallet, it can be hard to manage multiple cards and rewards categories at once. Mobile wallets offer a more efficient way to store and organize all of your workhorse cards, while not having to carry around ones that you don't use often.

They can also help you more easily monitor your spending and rewards, and some even track your orders' status and arrival time.

Plus, paying with a digital wallet offers added security. That’s because it uses technology called tokenization when you pay, which masks your real credit card number and instead sends an encrypted "token" that’s unique to each payment. This is unlike swiping or dipping a physical card, during which your credit card number is more directly accessible.