Peer2peer Payments Apps- Key to Effortless Transactions
A few decades ago, it may have been difficult to imagine that you could send money anywhere in the world using your mobile phone. But thanks to peer2peer payment apps, you can send money to friends and loved ones with a single click of a button. So, what is peer2peer payment apps? Let’s find out.
What is a Peer2peer Payments App?
Peer2peer payments apps allow users to transfer money using the phone number, banking details of the recipient, making payments easy and painless. Moreover, you don’t have to pay to use some of these apps. These payments are becoming popular among the masses because of the seamless experience they provide, and they save the number of trips one had to make to the ATM.
How to Set Up a P2P Payment Account?
If you think that it is difficult to set up a peer to peer payment account, then you are wrong. Anyone can easily set up these accounts. Whichever platform you choose as a p2p payment app, sign up on it and link your bank account or credit card to it.
On some apps, you may need to provide further information for verification. It is done to provide you with added security. Once you have set up your account, you can find other users by phone number, username, or email address.
How Peer to Peer Money Transfer Works?
Gone are the days when one had to stand in long queues in the banks to transfer money. Now you can transfer money quickly with the click of a button. Choose the recipient to whom you want to send money, put in the amount you wish to transfer, add a remark (not mandatory) then make the payment. Depending on different p2p payment providers, the time taken to transfer money will vary. For example, it may take anywhere between a few seconds to three business days.
Now that you know how peer2peer payments apps work let us talk about the top 7 peer2peer payment apps.
Top 7 peer2peer apps
- Zelle: With Zelle, you can send and receive money quickly and safely using email or mobile numbers, irrespective of where you bank. If you send money to recipients who are not currently Zelle users, they will receive instructions on accessing the funds. If your bank has partnered with Zelle, then setting up is just a cakewalk. But if it is not a Zelle partner, then you need to download the app.
- PayPal: A perfect alternative to traditional payment methods like money orders and checks, Paypal is yet another peer2peer money transfer app that is incredibly popular with people. Most people are familiar with this peer2peer payment provider, making it one of the dominant players in the online payment app market. You can send money to your family and friends for free from your linked bank account or your PayPal account balance. However, PayPal will charge a fee equal to 2.9% of the transaction value when you fund your money transfer with a debit or a credit card. Recipients should have a PayPal account to receive the money quickly.
- Venmo: Owned by PayPal, this app is limited to people in the US. People having a Venmo account can transfer money to their friends and family via their mobile phones. When you send money from your linked bank account, debit card, or Venmo balance, there will be no charge. Recipients can either leave the funds in their Venmo account or transfer them to their bank.
- Cash App: Owned by Square, Inc., Cash App allows users to make digital payments using credit cards or debit cards without paying any additional fees. The app is available on the App Store and Google Playstore.
- Google Pay: When it comes to sending and receiving money conveniently using the p2p payment app, Google Pay is second to none. Its integration with other Google products like Gmail has made it quite popular. After linking your account or debit card with Google Pay, you can transfer money to family, friends, store merchants, etc.
- Apple Pay: The tech giant Apple Inc offers its own mobile payment and digital wallet service called Apple Pay. It uses your Apple Cash balance or linked debit card to send payments and allows users to make payments in person, in iOS apps, and on the web using Safari. You can send money to your friends and family having an iPhone, iPad, or Apple Watch, provided they have a valid Apple ID. Collected money can remain in the app that can be used to make future purchases, or you can transfer it to a linked bank account.
- Popmoney: To make contactless purchases, you can use another peer2peer payment app called Popmoney. You can sign up for it by visiting their website. Like Zelle, Popmoney moves money directly from bank account to bank account, so there is never a Popmoney account balance.
Bonus: 6 Tips to Use Peer2peer Apps Safely
- Avoid sending money to someone you’ve never met in real life.
- Never let strangers borrow your phone.
- In case you suspect fraud, freeze your card immediately and inform your bank.
- Before sending money, confirm the username or phone number of the person you are transferring money to.
- Make sure your P2P apps are updated as updated apps contain the latest protection and security features. In addition, you can turn on auto-updates for your phone.
- Set up transaction alerts, so you get notifications immediately anytime your account is used. Consider linking your credit card to the P2P app instead of your debit card.
Deciding which cash transfer app to use to make payments online can be an arduous task. While some may charge little to no money for transactions, others may not be compatible with your device or may not be user-friendly. But don’t worry. You don’t have to stick to a single app. Peer to peer money transfer app market does not appear to be slowing anytime soon. So, you have plenty of time. Try them all and choose the PSP service provider that works well for you.