The Use of Mobile Money Transfer Apps Soar During Pandemic – PayPal and Venmo Top The List!

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Although there has been a general increase in the number of users opting for mobile money transfers over the past few years, the US remains the leading name in adopting the trend. Various surveys have pointed out that there has been an addition of at least 14% in the number of money transfer app users.

A side to side comparison in some prominent names like PayPal, Venmo, Cash App, and Zelle may not be enough to provide a descriptive picture since each platform has its own pros and cons. Nonetheless, insight into which app has more followers makes it obvious that PayPal and Venmo are somehow our favorite since it allows for easy transfer to other apps.

Needless to say, Cash App isn’t so far behind either. In fact, Square’s app was the leading name in 2018 before other banking apps became popular.

Later on, further studies revealed that although the post-pandemic situation meant that most businesses would resume and people will be able to visit the banks physically, the use of peer-to-peer payment apps like Venmo and PayPal is not slowing down at all.

Similarly, apps that supported cross-border transfers like TransferWise, WorldRemit, and MoneyGram also experienced substantial increase in use.

It would be a completely different scope to study how the use of such apps surged when the world was altogether facing a huge economic decline.

However, it can be deduced that since these platforms simplified even day-to-day money transfers like online shopping, their use became inevitable when physical restrictions were placed. With many stores adopting easier payment methods, grocery shopping and everyday purchases through apps are a major reason why there was a surge in the number of mobile money transfer apps downloaded over the past two years.

Let’s take a pause!

When the trends are so obvious, a question must arise amidst mobile companies who will wonder what can make these customers stick around longer?

Well, the most important factor would be pricing. There are fees associated with different types of transfers. Moreover, some apps come with additional charges whereas others offer cheaper alternatives. Eventually, customers tend to stick to options that are lighter on their pockets!

Another important aspect is the speed of transfer and its reliability. The biggest anxiety for a client is to wonder whether the digital money is through and if not, how long will it take?

A solid edge that digital and mobile transfers have over conventional means is that they are supposed to be quicker. If the company is not able to handle that expectation, it would definitely lose clients quicker than its making new ones.

This factor may be even more crucial than many businesses thought. Since pandemic created more anxiety around the customers, they were likely to stick to digital apps that assured trust and reliability.

Before You Go

 When physical restrictions were suddenly imposed and people were not able to go to stores that they visited twice every day, exchange of money was deemed a serious problem.

This situation was felt by almost everyone around the globe and it was definitely the major driving force behind the increase in use of digital money transfer apps.

The surge that followed in just two months was comparable to growth that had previously happened over a window of at least four years.

Initially, companies were confused whether this unexpected growth would continue after the pandemic or not. However, as the time passed, it became more and more obvious that the majority of the changes were here to stay.

Nonetheless, the convenience and security of the apps do not impose that clients become reckless with their use. With digitized accounts and online transfers, now it is more important to be careful about safeguarding our transactions so that access to useful information does not fall into wrong hands.

There is no surprise that online banking has paved the way for frauds and scams over the internet. New users who are less aware of technology are automatically more prone to falling as victims to such illegal activities.

Where the apps are supposed to make it easier to transfer your money, a portion of security lies in your hands and must be taken care of responsibly.

 

The post The Use of Mobile Money Transfer Apps Soar During Pandemic – PayPal and Venmo Top The List! appeared first on Eminetra.

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