Hi Taylor: Any tips on money sending apps? It feels like everyone’s always asking me to use something different and I’m wondering if there are some that are obviously better than others. – Kevin
Hey Kevin: Solid question. Remember when you couldn’t send money instantaneously from your phone? Now not only can you do it, but you have to decide which platform is the best option. Since there are too many choices to cover in-depth, I’m just going to hit four big ones.
- PayPal. If there’s one reason to use PayPal, it’s that this option has been around forever and is probably the most popular. There are a bunch of the frills that aren’t particularly useful; you don’t need a PayPal credit card, and you don’t usually need to pay a fee to get money into your bank account faster. However, the default use by online retailers, international recognition, and sheer size of the company makes it pretty universally useful.
- Venmo. Fun fact: Venmo is owned by PayPal. So if you hate PayPal and want to make sure the company never gets your business, using Venmo isn’t the solution. That said, this is the number one choice for most people looking for an easy-to-use mobile money app. If you transfer money a lot to friends and family when you split a tab, Venmo has you covered. It tries a little too hard to be a social media app, but who doesn’t enjoy the occasional emoji when sending money?
- Cash App. Newer than the other two, Cash App got popular in a hurry with the backing of its parent company Square. Square delivered the little card reader that could turn anyone into a merchant, and now the app lets you send and receive, use funds for debit card purchases, and even invest what you’ve got in your Cash App account. Since Cash App is still trying to build up its user base, you can also get a kickback when you refer a friend who starts using the service.
- Zelle. This one is used for speed and feels more like a direct connection through bank accounts instead of a third-party app that holds the money. You can send money to someone who doesn’t yet have Zelle, as long as you know they have a bank account and an associated email. You just need to be darn sure you get their email address right!
I’ve used all of these and feel like each is useful with its own pros and cons. I’d say the number one factor should be avoiding fees you don’t need to pay and trying to do what’s most convenient for your lifestyle and needs. Hope this helps!