Whether you are paying the bill at a café, sending money to your parents, or purchasing some French fries at a sports event, it is hard to underestimate the comfort of the use of peer-to-peer payment applications like PayPal or Google Pay.
Moreover, if you need some money urgently in case of any emergency, you can always apply to the payday loans app.
If you have these apps on your smartphone, you may forget about carrying a pack of cash with you or looking for an ATM. Your peer-to-peer app is linked to your personal bank account and allows you to get and receive your money instantly.
However, please always keep in mind that such convenience is followed by some pitfalls that would be nice to know about in advance to avoid while using your P2P apps.
Once You Send It, It is Gone
When you want to use a peer-to-peer app, the only things you need to know are a recipient’s username, his/her phone number, or email. Neither you nor your recipient know each other’s account details. As a rule, all transfers are free of charge and lightning-fast.
Before you send your money, be sure that the recipient is somebody you trust and know. There is almost no protection against fraud when it comes to P2P apps, and if you send anything incorrectly. consider it is gone forever.
Think Before You Click
We are sure that you have heard the rule — measure twice, cut once. It is still easy to confuse the recipients despite knowing them in real life — for example, is it SusanBrown96 or SusanBrown69? Think twice whether they are the right one to whom you are about to send money.
Scammers often aim at P2P apps since they are easy targets. Pay special attention to claimed or requested payments. Even if you know a person, double-check everything since swindlers may impersonate anyone.
Keep Track of Your Fees
Most P2P applications have no charge for receiving and sending money, but this is not the case with additional services. For example, such apps may offer you a freebee balance transfer to your personal bank account linked to the app within the first three days. However, if you decide to make it instantly, you will be eligible for a surcharge.
Usually, P2P apps withdraw money from your balance account. Nevertheless, if you link your payment app to your credit card, you will have to pay an extra fee. In the beginning, it may seem rather small, but over time, the overall amount may become substantial.
Use Mother Wit and Sound Judgment
Be convinced that your payment application is attributed with a password or any other similar protection, including Face Identification. Thus, you will be sure that if you lose your phone or somebody steals it, nobody will be able to use it through a P2P application to withdraw everything from your balance leaving you with a hole in your pocket.
Do not consider peer-to-peer apps as a complete alternative to your bank account. P2P is not a relevant place to keep and save your finances, so try to keep your running balance comparatively low. Consider it another option for quick and convenient settlements and look out when you use it.