Mobile Payment Tools: What You Should Know

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Photograph Courtesy Of PayiGo Group
Photograph Courtesy Of PayiGo Group

The popularity of mobile payment tools is rising as more people discover the benefits of using these tools. Since 2011, the number of payments made using mobile payment tools has doubled. As more consumers become aware that the tools are available, many have questions about how to use them and what their benefits are. Here is what you should know about mobile payment tools.

Mobile Payment Tools Allow You To Pay Others Quickly

Many of the people that regularly use mobile payment tools use them because they are a good way to pay others quickly. A parent can transfer money to their kid in college or friends can settle up with the one that paid the group’s tab with a few clicks on any internet connected smartphone, tablet, or computer. The person receiving the money can have the funds transferred to their bank account or can obtain cash through a debit card linked to a mobile payment provider like PayPal. This type of money transfer is often quicker than bank transfers, which can take around three days and requires that you know the bank account number of the recipient.

Mobile Payment Tools Are Easy To Use

Most mobile payment tools are streamlined to be user-friendly and simple to navigate. After you have created your account and linked your bank account, all you need to be able to send money to another party is their email address or cellphone number. Once you have keyed in the recipient’s information and the amount you want to send, the tool will ask you to verify your decision and then debit the amount from your account. The recipient will receive an alert by email or text message that a payment has been sent to them and they can receive the payment using the method of their choice. Transfers from bank accounts or available funds are typically free, but sending a payment from a credit card can be expensive.

Mobile Payment Tools Are Secure

Many consumers wonder if their information is safe when using mobile payment tools. They will be happy to know that the rules governing mobile payments are the same ones that apply to any other bank or credit card transaction. The companies that facilitate the payments use some of the most secure encoding methods to ensure that your information is not stolen during transfer. It is recommended to make financial payments over secure networks only, not open public Wi-Fi networks, to reduce the chances that your information could be intercepted by a third party.

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