As the use of mobile payment apps continues to increase, it’s important to take into consideration how to use them carefully and wisely. While mobile payment apps certainly have their benefits, they also have some downfalls, too. Here are some points to consider when sending and receiving digital payments.
What are mobile payment apps?
Mobile payment apps are a way to send and receive money without having to get out your credit card or checkbook. With mobile payment apps, you can send and receive from your computer, phone, or even smartwatch. They’re sometimes considered a “digital wallet”.
Some of the most popular apps include Paypal, Venmo, Apple Pay, and Google Pay, among others.
Since the Covid-19 pandemic, mobile payment apps have become even more popular. As more people have stayed home and had less in-person contact, mobile payment apps have simply become more convenient. They also eliminate germs that some find concerning when passing around bills.
Should you use mobile payment apps?
The answer to this question is, “maybe”. If you use mobile payment apps safely, they can certainly be a convenient option in many situations. However, you should use them with caution. Here are a few important precautions to take before sending or receiving money electronically.
Know the terms and conditions of the app(s) you use
Don’t attach your bank account
We recommend that you don’t attach your bank account to these apps. This is because if you do get hacked (and have your account attached), the hacker can then empty your bank account.
Only send and receive from people you know
Additionally, it’s best to only use your mobile payment apps to send and receive money from people you know. There’s a lot of fraud out there! Take precautions and make sure you know and trust the person you’re dealing with.
Consider payment restrictions
One con of paying with an app is that it’s possible to find yourself in a situation where payment is impossible. If your phone dies, gets lost, or malfunctions, you will not be able to render payment unless you have another option available.
Be wary of overspending
You may think that credit cards encourage overspending, but in many ways, paying with a mobile app is even easier. App creators have incredible and creative ways of making mobile payments easy and quick with flashy buttons and attractive functions. Because it’s so easy to send a payment, it’s important to be extra careful about overspending when you’re using a mobile app. Creating and sticking to a budget is one way to keep tabs on where your money is going.
Popular mobile apps
Some of the most popular mobile payment apps on the market include these options.
- Apple Pay
- Samsung Pay
- Facebook Pay
Before choosing to use one or more of these apps, be sure to take a look the pros and cons of each one. Be aware of fees and security precautions. Check out what other users are saying about their experience with the app and with the customer service department.
It’s up to you to keep your money safe!
Mobile apps aren’t the only area in which you need to be wary about keeping your money safe. Bank security, debit card fraud, and identity theft are a few other areas in which we commonly see fraud happen. Check out our blog posts to stay informed about how to stay safe and prevent unnecessary headaches.
We know that it can feel overwhelming to make the best choices regarding how to spend, save, and invest your finances. Whether you have questions about security, investment, or retirement planning, we’re here to help. Book a meeting today!