The evolution of technology has pushed away hard cash since there is a goal to turning the world as cashless as possible. It began by adapting to credit cards which have helped many people since it saves the worry and hassle of carrying around bulk cash from place to place. However, slowly the card system seems to go away since the introduction of cash transfer apps.
As simple as it sounds, these are mobile apps available in Google Play and Apple Store that deal with money transfers. They help send funds from one individual to another without having to go to the bank or physically deliver in cash. It sells on convenience as you can make the transactions from your smartphone wherever you are as long as you’ve got an internet connection. So how does send money app work?
How do Cash Transfer Apps Work?
Well, let’s take, for instance, a bank. If you have a bank account, you can transfer money from your account to another, but you have to go through the bank system to do so. However, a send money app is built differently. It is a form of direct transfers and purchases from one account to the other at ease. Here are some of the requirements for a transaction to be completed.
- Source of funds– you need to have an account where you are channeling your money from. In this case, this is your bank account, or you can deposit money from your bank account to the app balance.
- Recipient of the funds– you have to know where you are channeling the money to. In most cases, these transactions are usually complete if the recipient has an account in the same app. That will facilitate the easy transaction.
- Available balance– available balance is the amount of money that you have in your app account. This is not money in your bank but the money in your respective app account.
When making purchases or transfers, you need to specify your fund source, either the available balance or bank account. While it seems so easy to use these platforms, the primary worry for users is their safety. So are these cash transfer apps safe?
Are they safe?
They ought to be! For an application that is entrusted with personal details of its users, there is a high level of security measures takes. For this case, a send money app will have your personal information from bank account details, names, residential areas, and email addresses. These are details that are critical if leaked out. Most of these apps have multiple security measures to ensure your rights are protected and your credentials.
Most of the well-performing cash transfer apps serve users to the best of their abilities. However, there is always an exception. Scam trends show that cybercriminals follow up on customer purchasing behavior such as P2P platforms. These platforms offer immediate and irreversible money transfers. Some naughty characters can create an account, get your money and disappear without delivering what you had agreed on.
Some of the scam approaches include
- Fraudulent sellers
- Ticket scams
- Malicious emails
- Romance and puppy scums
Tips To Keep Your Money Safe
Some safety tips that you should take note of include
- Keep the connection between friends and family
- Avoid any transfers using public WiFi
- Always lock your application
- Go through the disclosures
- Verify the details of all transfers
- Don’t use these apps for business
- Adjust your privacy settings
While cash transfer apps are good news to many people, they come with potential risks, especially if they are not reputable. Ensure you counter-check your security measures to avoid any incidences.