Blog

How P2P Payment is Changing Personal Finance

by rapid! PayCard

Emerging Peer-to-peer payment technology is growing in popularity, and will soon make back-of-napkin IOUs obsolete. Peer-to-peer payment, also known as P2P payment, is online technology that allows users to transfer funds from a bank account or credit card via the internet or mobile phone.

One study found that nearly a quarter of mobile users sent money to another person from an app in 2016 — this statistic nearly triples when it comes to the millennial generation. The growing trend of P2P payment is just another chapter in 21st century technological augmentation of traditional services. Whether it’s ridesharing, online shopping, or P2P payment, consumers are foregoing tradition, and choosing digital alternatives in pursuit of immediacy and convenience. Naturally, Silicon Valley is taking notice.

In June, Apple1 announced they would throw their hats into the P2P payment market with Apple Pay Cash1. Apple Pay Cash1 is a P2P payment service that will automatically integrate into iMessage1 when the new operating system rolls out in the fall. To send or request funds, users will tap a button in the redesigned app drawer in iMessage1, provide a fingerprint for identity verification, and then the transaction is approved. All transactions are encrypted, and come with no additional charges for debit card users.

After a transaction, funds will appear on the Apple Pay Cash1 card, which will be stored in the Wallet App1 along with debit and credit card information. The Apple Pay Cash1 card is the first of its kind, virtual card developed by the electronic payment company Green Dot. The card will essentially act as a virtual bank account, and funds can be spent online or anywhere that accepts Apple Pay1. From the Apple Pay Cash1 card, funds can then be transferred into a bank account electronically or better yet DIRECTLY INTO YOUR rapid! PayCard by simply texting2 DD to your rapid! PayCard short code or looking in your rapid!Access2 App in order to obtain your Bank Routing Number and your card Account Number. Remember, to fintech systems once that information is entered they recognize your rapid! PayCard as a bank account.

There will be no registration process for the Apple Pay Cash1 card. When money is transferred to you, the virtual card is automatically generated. This card will go where you go, and money is stored in an encrypted account within the Apple iCloud1. This means funds can be accessed from an IPad1 or Apple Watch1, and money will be secure in case of a lost or stolen phone.

Apple Pay Cash1 is one of many advancements in FinTech/electronic payment. Consumers are turning to emerging payment alternatives, like P2P, in pursuit of added convenience and versatility. A 2017 Bank of America1 report found that 51 percent of respondents were annoyed by the hassle of writing checks, while 68 percent were drawn to P2P options due to the convenience it offered. In fact, cash isn’t in any better shape — the same report found that the number of daily cash users has declined nearly 10 percent since 2011.
Numbers don’t lie; electronic payment is growing in popularity due to it’s simplicity, security, and expedience. Contact rapid! PayCard to learn how you can upgrade to SimplyPaid – an electronic corporate disbursement system, and save time, money and improve payday efficiency by ditching paper checks.

1 All trademarks and brand names belong to their respective owners. Use of these trademarks and brand names do not represent endorsement by or association with this card program. All rights reserved.
2 While rapid! PayCard does not charge for this feature and service, standard text messaging, data and cellular rates may apply. Please check with your cell phone carrier and inquire about fees your carrier may associate with these services.
The rapid! PayCard® Mastercard® is issued by MetaBank®, Member FDIC, pursuant to license by Mastercard International Incorporated. Prepaid card can be used wherever Debit Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
The rapid! PayCard blog and any information contained within do not reflect the views of MetaBank or Mastercard, nor are they endorsed by MetaBank or Mastercard.

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Close