In an era of immediate gratification, waiting for a check to clear or even arrive in the mail may seem like a lifetime. Waiting for a friend or family member to pay you back may seem even longer…especially if days or months have passed.
Technology has improved this process by creating apps and services known as “Peer-to-Peer Services.” While large banks may have created portals to transfer money electronically be-tween same-bank customers, apps such as Venmo, Square Cash, and PayPal allow individuals to transfer money between each other via same day transfers just by using an email or a phone number.
These apps are very common among millennials who demand instant payment and convenience, but they can also be very convenient for parents or grandparents who want to send money to their children while away at college. This could be a way to monitor their spending and to give the “stamp of approval” before sending money blindly.
The large banks are not too far behind in technology either as they are currently in the process of allowing the same types of transfers that the above-mentioned apps provide.
With the creation of these apps and adoption by the larger banks, money transfers have become much more convenient and standardized. However, it is always important to keep your guard up for potential cyber security and identity theft. If you plan to use these types of apps and services, do your due diligence on the service provider and always try to maintain strong passwords to keep your information secure and monitor your transactions to scan for unauthorized payments.