The finance industry has changed a lot over recent years. What used to be the golden standard of making payments is quickly becoming obsolete. Gone are the days of checkbooks, cash, and loose change. Now, anyone can send money to practically anywhere in the world with the quick tap of a few buttons.
Thanks to our mobile devices, we can almost instantly access bank account balances, pay back a friend, or explore investment options without ever leaving the comfort of our own homes. Needless to say, we hold a lot of power in our pockets.
Not only does this allow for more widespread access, it’s also much more convenient to split the cost for something without having to get separate bills from the vendor. For example, you can split a restaurant tab, pay rent, or send gas money without ever having to involve the business.
So what are these apps that are making life so much easier? You’ve probably heard of Paypal, Venmo, and Apple Pay, but there are actually many more apps that function in a similar manner. From Cash App by Square to Zelle, it seems like everyone wants to get in on this industry.
These apps became even more of a game-changer when COVID-19 hit and changed the way we live life. With their ability to initiate contactless payment, cash apps quickly became even more convenient as we work to reduce touchpoints that could further spread the virus. Additionally, these apps are a method to send aid to family, friends, or businesses in need that may have seen significant financial impacts from the virus. In fact, a survey published by SimpleTexting found that 81% of respondents feel that they’ve used cash apps more since the pandemic began.
That survey also investigated how people are using money transfer apps. They found that baby boomers transfer the largest sums of money through cash apps. Nearly 40% of this generation has made a single transfer worth up to $1,000 at some point. Gen Z is more modest in this category, with most of their respondents saying their largest transfer is under $500. Approximately 5% of respondents have made transfers upwards of $5,000 through these apps.
While some may be hesitant to send a large sum of money through their mobile devices for fear of scams, it’s clear that these apps are for the most part widely accepted. “Per survey responses, 77% of respondents feel either “comfortable” or “very comfortable” transferring money through cash apps like Venmo,” according to SimpleTexting.