Electronic money transfers have undergone intense changes since their inception over 50 years ago. It’s hard to believe that their primary function was to transfer funds between financial institutions. While that's still in their wheelhouse, they've expanded into acts as simple as sharing a cab to the airport or splitting the check at dinner. Put those check books away, folks. “Just Venmo me.” Many players have stepped up to the plate to take advantage of this lucrative market. Do you know about all of them?
Check out the most popular and newsworthy apps that have jumped on the electronic money transfer bandwagon.
We all remember the elementary methods of electronic money transfers popularized by PayPal. You might not know it, but PayPal still exists today. Venmo has left PayPal in the dust by gaining popularity throughout the country as the digital IOU. Working as a virtual checking account, users can connect their bank to a personal profile and then sync those with Facebook friends.
Venmo's new profile feature allows its users to connect on a more personal level than simply sending payments between acquaintances. And with over $700 million in transactions in Q3 2014, clearly the C2C market is certainly worth pursuing. Those numbers certainly haven't been ignored.
Snapchat, a Facebook owned photo sharing platform, introduced a new money sharing feature in November. It has seen limited success in comparison to Venmo. The irony lies in that both Venmo and Snapchat are attempting to combine previously segmented market shares of young Millennials that use multiple social channels and apps
Uber is a cab alternative marketing towards the same younger demographic. Users can request a driver based on their geographic location and often at rate less expensive than a traditional cab. The accounts are attached to the user’s debit card, eliminating the traditional cash transaction required. Most appealing of all, tip is included.
Many apps have breached the surface of wireless payments for it’s users and getting positive feedback as a result. As technology continues to improve with the introduction of Apple Pay, online banking and other methods, retailers will soon be forced to conform with these standards in hopes of acquiring a greater market share from the traditional payment methods. That will mean big things for many of the companies listed above.
Although advertising has yet to infiltrate these apps on par with major social networks, you can bet that will be the end goal for these up and comers. What is the world coming to? Will marketers begin requesting Venmo payments from their clients to pay for social media ads all while they take Uber cabs to attend digital marketing conventions? You get the idea: like social media, mobile payments seem to be the fad that won't die off any time soon.
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