Our heart rates and other health indicators will be monitored by wearables, we’ll be able to control the temperature of our showers via our phones, and much more. And, of course, in this world of modern convenience, we’ll be able to make electronic payments directly from our bank accounts to our friends, our favourite mobile casinos and anyone else. This isn’t a prediction for the future anymore; it is possible right now and there are multitudes of banking apps that make sending money anywhere in the world as simple as a tap of the screen.
Understanding Peer-to-Peer Payments
Peer-to-Peer, or P2P, payments are what make it possible for apps to transfer funds from your account to the accounts of anyone else, anywhere in the world. In some cases the person making the payment and the recipient of funds are required to have the same app installed, but not in every scenario.
Money moves directly from your account to wherever it needs to go, with a few simple actions from within whichever app you have chosen. This type of financial transaction is becoming more and more popular, especially among millennials, although many people are still wary of the security that these apps provide.
In reality, thanks to the sandbox architecture that keeps these apps quite isolated, your funds are probably safer with mobile app transfers than they are with standard online transactions. The applications are usually also owned or backed by established names in the world of finance, so it’s all as safe as it is convenient. Many banks have created their own apps, and there are other e-Wallet or mobile Wallet apps such as Apple Pay, Android Pay, PayPal and Gyft that make transacting safe and convenient.
Making an Informed Choice
While P2P apps tend to be very secure, it goes without saying that you still need to be cautious. Find out which apps are most highly regarded and read thorough reviews of each one before you make up your mind. Weigh up the pros and cons, check that your confidential information will be encrypted and your transfer guaranteed, and find out what the fees are.
You should also apply your usual online and mobile precautions; use a different password for each app and never let your device remember your password. If your password falls into the wrong hands you could be cleaned out, and this is harder to reverse with P2P systems because they are analogous to cash payments. The best advice is to be vigilant while you enjoy all the convenience that banking apps have to offer.