We’ve all grown up knowing that the future would bring increased use of technology in our daily lives. However, I’m not sure we could have predicted just how much of that technology would be consolidated inside our telephones.

Smartphone applications, or apps, are booming right now. Apps are for more than playing video games or checking movie times. Consumers are using their telephones for activities such as boarding airplanes and submitting expense reports for reimbursements. That is why it comes as no surprise that some people now use their phone as a payment method.

According to an article published by MSN Money, a variety of Smartphone applications exist now that let people make a purchase simply by waving their phone or tapping a button at the point of purchase. Called mobile payments, these apps tie into a real account, either a bank account, credit card account, or the user’s account with the phone provider.

Each type of mobile payment has its pros and cons, which the MSN Money article outlines. For example, mobile payments tied to a credit card are often the most secure. They typically offer the same protections as paying by credit card directly, such as zero liability for fraudulent charges. However, like a credit card account, you have a specific window in which you can dispute any charges.

Mobile payment apps have not yet become mainstream, but are expected to with the impending release of Google Wallet. According to the Google Wallet homepage, consumers (and employees using a corporate credit card) will be able to store all their account information inside the app. When making purchases at participating merchants, you can make a payment by tapping a button within the app.

For more on the benefits, and risks, of different types of mobile payments, see the full MSN Money article. Also click here for more on Google Wallet.