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People don’t carry cash around like they used to. So let’s say you go out to eat with friends and you don’t have the cash to pay your part of the bill, if your friends pay for you how do you pay your friends back? It’s easy to do using your smartphone. It is called a peer-to-peer payment (P2P) and they are on the rise, especially among young consumers.
According to an article in Forbes, here are 5 quick, easy and secure ways to send money to a friend:
- Venmo: PayPal owned Venmo lets you pay anyone, even those without a Venmo account. You can transfer money from a linked bank account or debit card for free, but you’ll pay a 3% transaction fee when you use a credit card. Using the app you can also request money from a friend.
- PayPal: This one is the most commonly used, even by online businesses. It works like Venmo, but charges a fee for using a debit card. You also are charged a fee if someone pays you with a debit or credit card.
- Google Wallet: Send money to friends using a linked bank account or debit card using their email address. Money you receive goes to your Google Wallet account which you can then use to pay someone or transfer to your bank account. You can also get a Google Wallet Card to use in stores or at an ATM.
- Popmoney: Unlike the other services mentioned above, transferred money goes straight into your bank account, rather than a separate account that you then have to transfer to your bank account. They charge $.95 per transaction and have limits on how much money you can transfer per day. It is a subsidiary of Fiserv, a company used by many banks to process online bill pay.
- Chase Quickpay: This is free as long as one party in the transaction is a Chase customer. Can also be used for recurring payments.
Other peer-to-peer companies not mentioned in the Forbes article are Square Cash, SnapCash (through SnapChat) and Dwolla. Facebook has also added it as a feature in Messenger. In addition, other banks besides Chase offer P2P payment services.
For the full article from Forbes click here.
