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RESEARCH: Person-to-Person Payments

According to NerdWallet, peer-to-peer payment systems — also known as P2P payments or money transfer apps — allow users to send one another money from
their mobile devices through a linked bank account or card. They make splitting bills with friends and family painless.

Complete this activity to learn more about P2P payments.

Part I: How does P2P work?

Read the How Peer To Peer Payments Work section of this Discover article and answer the questions that follow.

1. How do you set up a P2P payment account?

Using your social security number and putting basic information about yourself

2. How do you find a user to send them funds using P2P?

Find other users by their username, their email or your phone contacts

3. The day they go on sale, Beth forgets her money to buy season tickets to the high school basketball games. Randall has extra cash in his wallet and pays
for her ticket. How is P2P useful for Beth in this scenario?
Beth can easily pay Randall back on the spot instead of waiting a couple of days

Part II: What companies provide P2P payment apps?

Use this Magnify Money website to learn a bit more about which companies offer a P2P service and key details you should understand about their services.
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 4. For each P2P app reviewed in this article, place a checkmark on the chart with your familiarity for their service.

I know someone who

I’ve used it myself I’ve heard of this before I’ve never heard of this
uses it

PayPal
X

Venmo X

Google Pay X

Apple Pay Cash X

Zelle X

Square Cash App X

Popmoney X

Part III: Research

Use the resources in the article above to select 3 apps you want to research in more detail. Then, conduct your own research to access additional resources and fill
out the table for each app. While doing your research, think about the following questions:

● Does the tool work with specific banks/accounts only? Or can you use it regardless of your bank?
● Who am I allowed to send money to?
● Is there a fee for my transactions?
● What security or anti-fraud measures does this company take to protect their users?

App #1 Name: Popmoney

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Primary Purpose & How the App Works: online banking company that also provides financial services to banks and credit unions

Who can you pay? Fees to send money Fees to cash out Pros Cons

 Funded from debit  All transfers are payments funded by debit Fee is 0.95 cents per
card or bank made to and from cards are delivered as early transaction
account: $0.95 per users’ bank as the next business day,
transaction accounts
while payments funded by
bank accounts can take up
to three business days to
 Friends and family
process.

App #2 Name: Google Pay

Primary Purpose & How the App Works: Android devices, users can send or request money via Gmail, in the Google Pay app or via Android messages

Who can you pay? Fees to send money Fees to cash out Pros Cons

Android Users ● Funded from ● Standard bank Allows debit card and credit Google Pay account must
bank account, transfer (up to card to be linking claim the funds within 14
debit card or five business days or funds will be
Google Pay days): No fee
returned to the sender.
balance: No ● Standard debit
fee card transfer

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 ● Credit cards (up to 24
(only allowed hours): No fee
for paying ● Instant
merchants): transfer
No fee (within
minutes when
using Google
Pay balance):
No fee

App #3 Name: Venmo

Primary Purpose & How the App Works:

Venmo permits payments between family and friends, and allows users to make purchases at selected merchants onlin

Who can you pay? Fees to send money Fees to cash out Pros Cons

● Friends and ● Funded from ● Standard no charge when you send Charges 3% when money is
family bank account, transfer (next money from your linked bank sent through a credit card
● Select online debit card or business day): account, debit card or Venmo
merchants Venmo No fee balance
● balance: No ● Instant
fee transfer: 1%
● Funded by a of balance
credit card: (max fee $10)
3% fee ●
●

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Part IV: What Do You Think?

5. Which of the apps you researched would you use? Why this one?
Venmo because there is no charge when money is sent from a debit card which I use

6. Compare your answer to #5 with a partner. Which app did they choose and why?

7. What top 3 criteria would you recommend someone use to evaluate an app they are thinking of using? Explain your reasoning.
They should look at the fees they might have because they may be draining, also who you can pay because it may be a time where might need to pay in
store or online, and how fast can you receive/get money from and individual which can be useful when knowing how much to spend before making a
transaction

8. Why do you think P2P apps have become so popular?

I think the apps have become so popular because you do it online when you don’t have the cash in person sometimes you can do it instantly

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