August 28, 2019
Studying the properties and composition that make up the FinTech ecosystem
Welcome to this week’s industry analysis with the FinTech Chemist. While I may not be literally mixing solutions and preparing reagents, I am studying and testing out the latest and greatest in FinTech. One of my favorite sayings is “there’s an app for that.” Heck, you can even download mobile apps that give you full access to the periodic table! But, I digress… Last week, I experimented with Cash App and its Boost feature, but Cash App isn’t the only player in the market. We live in a time where it has never been easier and more efficient to send money digitally. So, what other options are available to consumers?
According to eMarketer, a market research company, “An estimated 79 million adult Americans will use P2P payment services this year, an increase of 24% over last year.” For any effective scientific analysis, it’s critical to identify the key elements necessary for success. In this case, let’s compare five of the most popular payment services in the United States.
Here’s the reality: all of these services are great options. Choosing a P2P payment service is a bit like trying on shoes. You have to pick the app that best suits your needs and lifestyle. For instance, PayPal is a superior all-in-one service for online shopping and even a line of credit. However, Google fans and Android users may gravitate towards Google Pay. Venmo is a bit confusing because it’s owned by PayPal, but operates separately. Consumers love the social aspect, and you can even “like” and comment on payment transactions from users within your network. Here’s a recent transaction I made to pay for dog food!
However, even with all these great options, users should be aware of the risks when using P2P payment services. It’s kind of like safety goggles in a chemistry lab – you should always follow protocol when testing unknown substances, or in this case, a new app. While these apps are all generally very safe to use, there’s always a risk of fraud and data security breaches. An article in Consumer Reports said it best, “It’s almost impossible for consumers – even the rare ones who read user agreements – to understand their rights and obligations in the event of an error or financial fraud.”
Fortunately, all of these companies are heavily investing in resources and security to give consumers peace of mind. So, don’t stress too much next time you need to send money for drinks, dinner, or even dog food. Now, onto my next scientific… I mean FinTech hypothesis adventure. And, as always, remember to take your vitamins!
Read the previous edition of The FinTech Chemist.