A payphone (alternative spelling: pay phone) is typically a coin-operated public telephone, often located in a telephone booth or in high-traffic outdoor areas, with pre-payment by inserting money (usually coins) or by billing a credit or debit card, or a telephone card.

Prepaid calling cards also facilitate establishing a call by first calling the provided toll-free telephone number, entering the card account number and PIN, then the desired telephone number. An equipment usage fee may be charged as additional units, minutes or tariff fee to the collect/third-party, debit, credit, telephone or prepaid calling card when used at payphones. By agreement with the landlord, either the phone company pays rent for the location and keeps the revenue, or the landlord pays rent for the phone and shares the revenue.

Payphones are often found in public places to contribute to the notion of universal access to basic communication services. One thesis, written as early as 2003, recognized this as a digital divide problem.

In the 20th century, payphones in some countries, such as Spain, used token coins, available for sale at a local retailer, to activate pay phones, instead of legal tender coins. In some cases, these were upgraded to use magnetic cards or credit card readers over the years.

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