DENVER (KDVR) — Mobile payment apps such as Venmo, PayPal and ApplePay continue to grow in popularity with consumers, but some question how safe and secure they really are.
Undoubtedly, a good number of Coloradans use these mobile payment apps to easily and quickly send money to others.
Consumer experts tell problem solvers that major players like Zelle, Cash App, Google Pay, etc. are going to be incredibly secure.
These are the off-brand randoms you need to look out for.
According to NerdWallet analysts, around 79% of consumers use at least one service.
Here’s the thing, though: While these platforms are considered safe, there are some things Coloradans should be aware of, like unexpected charges.
Take for example credit cards. They cost money to use, and when you slip one into a store, retailers usually pick up that cost for you.
But when you’re just doing a peer-to-peer payment app like Venmo or PayPal, there’s no retailer to shoulder that burden.
“So as a consumer you generally have to. Which means that you will have the option of paying with a credit card and repaying that credit card at a later date, but you will also have the additional costs,” explained Chanelle Bessette, banking expert at Nerd Wallet.
According to Bessette, the fees are usually 3% to 4%
It’s not a lot if you’re only sending $20, but if you’re sending $100 or more, it can add up pretty quickly.
The same goes for fraud protection.
According to experts, none of these apps offer this kind of security if you are a victim of a scam or fraud.
The thing is, it’s not up to the app provider to make sure you send money to whoever you want.
“It’s a good idea to make sure you don’t keep too much money in those accounts. Just for a temporary hold, then regularly transfer back to your accounts so you’re not just keeping hundreds or thousands of dollars in your Venmo or Cash App accounts because – just for your own sense of security and peace of mind that ‘it’s good to keep your money in an actual bank account,’ Bessette explained.
A NerdWallet survey found that around 68% of app users say they have maintained a balance in their mobile payment accounts.
The survey also found that, on average, users who have mobile payment apps kept about $287 in their accounts before transferring it to their bank accounts.
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