SAN FRANCISCO (CBS 5) — New cell phone applications are allowing consumers to pay bills with just a few clicks.

New pay-by-phone applications such as mPayy could easily save the embarrassment of forgetting to withdraw cash from an ATM.

According to Tim Michaud, with applications like Mpayy, you can make a payment by typing in the phone number of anyone you are going to pay back and the amount. By hitting send, you complete the payment.

The applications come handy for things like splitting dinner with friends. They let you pay for everything from coffee to utility bills without digging through you wallet or worrying about pricey overdraft fees.

As long as the apps have been well tested, pay-by-phone could be even safer than using your credit cards. “The next time you put your credit card inside of a bill fold at a restaurant, you essentially handing the waiter or waitress more than enough information to conduct an electronic transaction on he internet.” mPayy CEO, Conrad Sheehan said.

However, mobile security expert Robert Rachwald said it really depends on how well the app is built. “If somebody builds something quickly. For example, we’ve seen this with Facebook. In fact if you go back to the early days with online banking, they were riddled with problems. Then over time they had to go back and fix a lot of these issues,” Rachwald said.

MPayy is working with the Chicago Transit Authority, a big organization that’s likely done their diligence. However, keep in mind that anything hackers can do to a computer, they can do to your phone, such as uploading key-login software to snoop on your pay-by-phone passwords.

(© CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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