Today technology has allowed consumers and businesses who are embracing mobile app usage to increasingly go cashless. Square, a credit card reading technology, allows businesses and entrepreneurs to accept credit card and debit card payments from consumers when they don't have cash on hand. Now PayPal, Venmo, Apple Pay and more technologies have developed allowing people to pay or send money to other users more easily, eliminating the need for cash, credit cards and checks.
Many young adults have embraced the use of Venmo to settle payments between friends or pay rent when they don't have cash on hand. Venmo is an app that allows consumers to send and receive various forms of payments from credit cards, PayPal, Apple Pay and more. One of the perks of using these new technologies is convenience. Whenever consumers forget their wallet they don't have to run to the ATM to get cash, carry large amounts of cash on hand or have to wait for a check to clear. It's instant.
In an article on Yahoo! discussing Apple Pay and PayPal, it stated that about $260 billion worth of transactions have taken place in the past year (since November 2014) through PayPal. According to an article discussing Venmo is Businessweek, Paypal acquired Braintree for $800 million in 2012, and through this acquisition PayPal also owns Venmo. Venmo is a more social way to pay, which can be attractive to people who often share money between friends or close acquaintances because users are required to fill out a reason for the transaction taking place which can pop up on your friends feeds who also use the mobile app. Although there is a feed used by Venmo, users also have the option to make transactions public or private depending on their preference.
This year Apple Pay was released in October allowing new iPhone 6 users to make in store purchases via finger print reader and the credit card connected to their iTunes account. The new technology uses near field communication making meaning Apple Pay users must simply wave or tap their phone to the payment terminal and they can make their purchase with a credit card linked to American Express, MasterCard or VISA. A month later, Snaphchat, a popular messaging app, introduced Snapcash allowing people to send each other money through the mobile app as well.
With the emergence of these new mobile applications forgetting your wallet, waiting for checks to clear and having to run to the ATM for cash, may be a problem of the past. It'll just be a matter of time for consumers to become familiar with these technologies and get over the security hurdles that many people have when it comes to mobile payments. Similarly to how the Uber and Lyft apps have made taxi services easier for people in large cities to get around, these mobile apps may change the way people pay, share and receive money in the future if these apps can gain more trust by consumers.