Transferring money is as simple as making a few taps on your mobile device.
In the 1990s, if you were in debt to a friend for $5, you would take a new bill out of your wallet, count it out, and hand it to them. Cash may still reign supreme in today's society when it comes to making modest payments in person; however, sending money digitally to friends and family is now simpler than ever before. These social payment applications have you covered in the event that you need to send money to a friend, relative, roommate, or anybody else for anything ranging from splitting a restaurant bill to your portion of the rent.
The 6 Finest Mobile Payment Apps of 2023
- Highly Recommended Overall: PayPal
- Highly Recommended to Use Amongst Friends: Venmo
- Highly Recommended for Straightforwardness: Cash App
- Highly Recommended for Banking: Zelle
- Highly Recommended for Google Accounts: Google Pay
- Highly Recommended for Social Media: Meta Messenger
Highly Recommended Overall: PayPal
- TRANSACTIONS: Domestic and international
- FEES FOR TRANSACTIONS: None (required for credit card and international transactions)
- TIME TAKEN FOR TRANSFER: No more than one day
Why do we recommend it?
PayPal is, in our opinion, the best payment app available overall. It features an intuitive user interface, high safety, and security levels, and no transaction fees are incurred while sending money to loved ones.
The advantages and disadvantages
PayPal advantages
- It is simple and cost-free to create an account.
- When you send money to a member of your family, there are no fees.
- Accounts are protected from potential threats by robust encryption technology.
PayPal disadvantages
- There is a cost associated with the receipt of payments for business owners.
- Your PayPal account may be placed on hold at any time by PayPal.
Overview
PayPal has become the industry standard for online payment processing. It first gained prominence as the digital wallet and payment provider of choice for eBay transactions; however, in recent years, it has expanded to become one of the most prominent names in the field of online payments.
PayPal enables users to move money to and from virtually any bank account in the United States, as well as numerous bank accounts in other countries. When sending money from a bank account balance or a PayPal balance to relatives or friends, there is no cost charged by PayPal; however, there is a fee charged when sending money from a credit card or when converting currencies.
Highly Recommended to Use Amongst Friends: Venmo
- TRANSACTIONS: Domestic only
- FEES FOR TRANSACTIONS: None (required for instant and credit card transactions)
- TIME TAKEN FOR TRANSFER: 1-3 days (or instantly for a fee)
Why do we recommend it?
Venmo eliminates the hassle of dividing up contributions, which is helpful whether you and your pals are going out to eat together or organizing a trip together.
The advantages and disadvantages
Venmo advantages
- A simple method for dividing the bill across family and friends
- Option for instantaneous transfers
Venmo disadvantages
- There is a cost of 3 percent when using a credit card to transmit money.
- The default level of privacy is public view.
Overview
Even though PayPal owns Venmo, the Venmo app couldn't be more different from the PayPal app. The primary function of the Venmo app, which also includes a built-in social component, is to send money to pals. And while you may log in and access your account using standard desktop computers, you won't be able to send money unless you use the mobile app or a mobile web browser.
Almost 85 million people are using Venmo. That's quite a few restaurant checks to be divided up. In addition, you can use Venmo to pay for purchases at a wide variety of different establishments. Sending money with your linked bank account or debit card is completely free of charge.
Highly Recommended for Straightforwardness: Cash App
- TRANSACTIONS: Only U.S. and U.K.
- FEES FOR TRANSACTIONS: None (required for an instant transaction)
- TIME TAKEN FOR TRANSFER: 1-3 days (instant transaction requires a fee)
Why do we recommend it?
The Cash App is a peer-to-peer payment application that is simple to use and enables users to purchase and sell bitcoin.
The advantages and disadvantages
Cash App advantages
- Simple to link your bank account using a debit card
- Provides customers with the option to buy and sell bitcoin
- Offers consumers a digital wallet
Cash App disadvantages
- You are only allowed to receive $1,000 every 30 days and transfer $250 every 7 days before your transaction needs to be verified.
Overview
The parent company of mobile credit card processor Square, Block Inc., recognized the rising demand for peer-to-peer payment options and developed Cash App as a solution to meet those needs. Cash App performs essentially the same function as Venmo, albeit without the latter's built-in social features. You can request money from friends and send money to them, and there is no fee associated with the transfer of funds from a linked bank account or debit card.
In 2018, Cash App launched the capability to purchase and sell Bitcoin, which distinguishes it from other popular payment apps by providing a service that is not available in other apps.
Highly Recommended for Banking: Zelle
- TRANSACTIONS: Domestic only
- FEES FOR TRANSACTIONS: None
- TIME TAKEN FOR TRANSFER: In a matter of minutes
Why do we recommend it?
Zelle is a user-friendly payment service that allows consumers to transfer money between partner institutions in a short amount of time.
The advantages and disadvantages
Zelle advantages
- A wide variety of significant banks offer Zelle
- Transfers on the same day
- The app does not charge any fees for sending or receiving money.
Zelle disadvantages
- You are only permitted to transfer money from the bank account that has been specifically designated.
Overview
Zelle provides a novel method for sending money directly to friends or family members from your bank account. You can send cash using same-day transfers if you have an account at a bank that participates in the program. The list of collaborating banks is continuously growing. It already includes colossal financial institutions like Chase, Bank of America, Citi, and Wells Fargo, as well as the industry leaders in online banking, Ally and Capital One.
Even if your financial institution is not a Zelle partner, you can still utilize the service by downloading the Zelle app and adding your debit card to it. In the event that your financial institution is one that takes part in the Zelle program, you will not only be able to use the Zelle app but also the website or mobile application that your financial institution offers.
Both sending and receiving are entirely free. At this time, you can only connect one bank account to your Zelle profile. If you want to use Zelle, you should make sure that the account you use to sign up is your primary account.
Highly Recommended for Google Accounts: Google Pay
- TRANSACTIONS: Domestic and international (the U.S. to India and Singapore)
- FEES FOR TRANSACTIONS: None (required when using a debit card)
- TIME TAKEN FOR TRANSFER: Instant to 5 days depending on payment amount
Why do we recommend it?
You should consider adding Google Pay to your toolkit if you already make extensive use of the other products in Google's product suite. Using this user-friendly and flexible tool, it is simple to both send and receives monetary payments.
The advantages and disadvantages
Google Pay advantages
- There are no costs charged when you send money to loved ones and friends.
- Compatible with Google services and products, including Gmail
- Simple to operate from a desktop computer or a mobile device.
Google Pay disadvantages
- Transfers to your account can take anywhere from three to five days.
- Charges associated with withdrawals made with a debit card are equal to 1.5 percentage points or $0.31, whichever is larger.
Overview
The transmission of money is just one of the many things you can do online, and Google provides a tool to help practically all of them. Google Pay's synergies with other Google products, such as Gmail, make it an offering unlike any other. You can send and receive money to and from friends and family members with Google Pay by entering their name, email address, phone number, or a QR code. If you already have a Google account, you are effectively enrolled in Google Pay without needing to do anything further.
It has a clean look and is simple to operate, just like the majority of Google's other products. It can be used using the app that is only dedicated to Google Pay or through other Google services that are integrated. There are no fees required when making use of Google Pay at this time, except when money is transferred to a debit card.
Highly Recommended for Social Media: Meta Messenger
- TRANSACTIONS: Domestic and international
- FEES FOR TRANSACTIONS: None
- TIME TAKEN FOR TRANSFER: 3 to 5 days
Why do we recommend it?
Users of Facebook can utilize the quick payment facility {Meta offers to send money to other social networking service users.
The advantages and disadvantages
Meta Messenger advantages
- Transfers are kept confidential, in contrast to a number of other apps that offer a public alternative.
- Simple to use based on your previous experience with Meta chat
Meta Messenger disadvantages
- To make use of it, you need to have a Facebook profile.
- In order to use your debit card or PayPal account with your Meta account, you will need to link them.
Overview
Since Meta now knows all there is to know about you, you might as well give them your debit card so they can integrate money transfers into your chat experience. You can send money to nearly anyone as long as they have a Facebook account because you don't have to wait for them to open an account elsewhere in order to do so. They need to add a debit card or a PayPal account in order to start receiving payments.
The details of each transaction are kept confidential. Transactions involving the sending of money are kept private and will not appear in your feed. The money will be deposited into the bank account within five business days when a payment is approved. It can be summed up like that.
Comparing the Best Payment Apps of 2023 for You
COMPANY
|
CATEGORY
|
FEES
|
DOMESTIC OR INTERNATIONAL TRANSFER
|
TIME TAKEN FOR TRANSACTION TRANSFER
|
| PayPal |
Highly Recommended Overall |
None (required for credit card and international transactions) |
Domestic and international |
No more than one day |
| Venmo |
Highly Recommended to Use Amongst Friend |
None (required for instant and credit card transactions) |
Domestic only |
1-3 days (or instantly for a fee) |
| Cash App |
Highly Recommended for Straightforwardness |
None (required for an instant transaction) |
Only U.S. and U.K. |
1-3 days (instant transaction requires a fee) |
| Zelle |
Highly Recommended for Banking |
None |
Domestic only |
In a matter of minutes |
| Google Pay |
Highly Recommended for Google Accounts |
None (required when using debit card) |
Domestic and international (U.S. to India and Singapore) |
Instant to 5 days depending on payment amount |
| Meta Messenger |
Highly Recommended for Social Media |
No |
Domestic and some international |
3 to 5 days |
Frequently Asked Questions (FAQs)
What exactly is a payment app, anyway?
An application for paying for goods and services and sending money to business partners, friends, and family is called a payment app. These days, people don't carry around as much cash as they used to, so using a payment app is a great way to quickly refund a buddy for a concert ticket, assist a family member with their bill, or even pay for anything in a store when you don't have your wallet on you. It's the same as having a digital wallet on your phone at all times with you.
What is the function of a mobile payment app?
A payment app operates as a digital wallet. When you link your bank account and credit card information to the app, it will safely store that information for you so that you may use it to send and receive money straight through the app. You don't need to carry your wallet on your person; in some cases, you can even use the app outside of the country. It is a speedy and straightforward method of sending and receiving money and paying for products online and in physical stores.
How much does it cost to use a payment app?
Some payment applications are totally free, while others only charge for certain features, such as receiving money or transferring it to friends and family. There is a possibility that specific payment applications will levy costs for the following: receiving money faster than the typical amount of time, currency exchange and processing fees, and credit card fees. These costs may fluctuate depending on the nature of the transaction, its size, and the place it takes place.
You may be subject to credit card processing costs of between 2.5 and 3 percent of the total transaction amount when utilizing certain payment apps. If you own a small company, you can include these costs in the price of your products and services and charge additional fees to clients who pay with a credit card.
Is it worth it to use a payment app?
It is worthwhile to make use of free payment applications because there is no fee involved, they are convenient, and they are simple to operate. However, if you have to pay in order to use the payment app, it is debatable whether or not the expense is justified. It is typically worthwhile for a small company to take credit cards as a means of payment because doing so will likely result in an increase in the total number of customers that are patrons to the company.
If you need to transfer your funds to another country or need access to your cash on the same day, you will need to find out the fees, consider your options, and then decide whether or not it is worthwhile to spend a little bit more for the convenience of having your money sent faster.
Our methodology to determine the best payment apps for you this year, 2023
In order to pick the best payment applications, we investigated various popular options and compared the features offered by each of those apps. As part of our study, we took into account a variety of aspects, including but not limited to reputation, functionalities, the convenience of use, platforms on which they operate, how money may be sent and received, and more. The applications presented here are the ones that made it to the top of our list after much deliberation.
