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You could use card or cash like a normal person
I don't think normal people use cash over the phone. I think you're thinking Star trek teleporters?
Why are you ordering stuff over a phone call and what does a smartphone app have anything to do with it lol
If you mean ordering from a phone shopping app, 1) you can just enter credit card details into the app, you don't need your bank's software, 2) you can just use a website on a computer
Why would you pay over the phone? Maybe I'm missing something but you can enter your card info or you can go in person and pay.
At least that's what I do personally. I've always found mobile phone based payments problematic. However, if there is ever some sort of Foss payment system I'm ready to give it go. (Taler)
Is it that common to pay over the phone? Do you give them some sort of code? How does that work?
Online shopping.
How do you use mobile payment apps for online shopping?
Is some sort of digital credit card?
You can check card info and see if your order went through, get notifications and etc.