With millennials, cash is no longer king. When its time to pay your portion of the bill, many are going different types of cash apps. Some even using Apple or Google Pay.
Mobile payments have changed the need to carry cash daily. But if you are deciding which app to download, have you thought about which service is best and which is safer? From the looks, at the apps, It all depends on who your friends are.
Many are very familiar with Venmo, which is owned by PayPal; it was the first and is the number one choice among the millennials. Whereas Zelle, which is owned by consortium of banks, seems to draw in the older crowd because it is built into many of the banking apps.
One massive advantage of Zelle is that it puts the money in your account instantly since it’s apart of your banking app. There is no delay in transferring money, not even five minutes late. Just as similar to going into the bank and making the transfer.
A new one to these services is the Cash app, owned by Square. They are growing at a rapid pace. One significant advantage is being able to use it when you shop or dine, which the other two are not always available to you. Especially when a business uses Square, it makes it much more effective to use the Cash app.
When looking at Venmo, it is more like a social network that you can see what your friends are doing, and who is sending money to whom, which seems a bit off to me if you are creeping on your friends and who they might be sending money too. One new improvement is you can turn off the sharing features.
Now, what happens if you accidentally enter the wrong phone number. Well, Venmo and Zelle, you end up wiring cash to a stranger. So it makes it imperative for you to confirm your friend’s phone number. And these apps don’t provide the same fraud protection as a credit card does.
At one point, Zelle was considered the safer option, just because major banks owned it, but it is now becoming a popular target for scammers. So there is some difference when it comes to safety.
Of course, the old dollar bill always works, but if everyone is using an app, it might just make it easier.