An electronic device and a method for providing a payment service in the electronic device are provided. The method includes receiving a first user input through an input device of the electronic device, receiving information on at least one of the transaction merchandise or a payment card through a second communication circuit, selecting, after receiving the first user input, one of a plurality of payment cards based on, at least in part, at least one of the received information or a payment history, displaying the selected card on the display, receiving user authentication information through a authentication device, and transmitting, after receiving the authentication information, a magnetic signal, which is generated based on token information, to an external payment device through a first communication circuit and a conductive pattern of the electronic device.