In the world today, everyone is looking into shortcuts for everything from cooking to driving and now for payment methods. The world as a whole is becoming a paperless society. According to a Business Insider report, more than one trillion dollars are exchanged through peer-to-peer (P2P) payments applications such as Venmo and PayPal. This number is expected to grow exponentially in the next couple of years.
Currently, there are 6 major competitors in the P2P payment game. First is Venmo, which was established in 2009 and has flourished with the millennial generation. The fees are limited to transactions including credit cards however the money will not reach one’s account for about two business days. PayPal is another application in the game, who was originally connected with eBay however they branched off in 2015. Through PayPal one can receive money with phone numbers and email addresses in 25 different currencies; however, there are multiple fees associated with using this platform. Additionally, Zelle is a new competitor in the paperless exchange realm. Zelle is currently associated with 34 banks in America and is looking to expand worldwide. This platform is the closest to a wire transfer in the bank with zero fees associated and instant access to the exchanged money. It also is more user-friendly for older generations wishing to send money. Square Cash, Apple Pay, and Google Wallet are the last three competitors with smaller user bases and narrower availability to exchange money.
All six competitors have their pros and cons, and all are making major changes in the process of exchanging money. Worldwide the use of paperless payments both through the applications and debit and credit cards have been increasing. This is leading to people carrying less cash and a lower mugging rates due to the muggers getting less out of an attack. Also, money is simply exchanging hands quicker leading to a more lucrative economy. One receives the money they were owed from a friend instantly which leads them to turn around and spend it on another object quicker. On the other hand, fraud is a big topic in relation to P2P payments. Technology is constantly changing to try and stay on topic of the countless ways people produce to steal money. However, it is hard to keep up. Overall, the paperless world we live in is helping the economy flourish in more ways than one.