Payment apps like PayPal, Venmo, and Cash App have surged in popularity, with nearly 75% of U.S. consumers using them in 2023, a notable increase from 68% in 2022. The payment volume on these platforms has quadrupled from 2018 to 2022, particularly among younger Americans who often treat these apps as substitutes for traditional bank accounts, receiving paychecks and storing funds [7fd1a8d8].
However, this growing reliance on payment apps comes with its own set of challenges. Users frequently face confusion regarding the insurance of stored funds and the varying regulations across states. For instance, Robin DesCamp, a lawyer from Bend, Oregon, shared her experience of encountering difficulties with customer service after a fraudulent charge, highlighting the importance of caution when using these services [7fd1a8d8].
In a related development, Google has introduced a new feature in Google Pay that allows Android users to request payments from friends or family members for app purchases. This feature aims to enhance flexibility and convenience in digital transactions, particularly for users without credit cards who wish to make purchases on the Play Store. The payment request can be sent to a contact, who can then complete the payment using their Google Pay account. This functionality is part of Google’s broader strategy to improve the usability of its payment systems [717b2fa5].
As Google rolls out this feature, Apple has announced the discontinuation of its buy-now-pay-later service, Apple Pay Later, which was launched in March 2023. Instead, Apple will allow installment loans through third-party app Affirm and will introduce new payment options that will enable users to access installment loans via credit and debit cards when checking out with Apple Pay [2391af1c].
In light of these developments, it is crucial for users to remain vigilant about the safety of the apps they use. The Washington Post recently provided three easy ways to check if an app is safe: searching for the word "sell" in the app's privacy policy, checking the popularity of one-star reviews in the app store, and reviewing app permissions in the Google Play store to see if the app requests unnecessary access to personal information [94fc0ce7].