Three questions to ask before choosing a payment app

What do you need the payment app for?

Are you looking to seamlessly manage your money, set up recurring payments, leverage a digital wallet, or even send money internationally?

Who are you sending money to?

Are you looking for a convenient way to send money to friends and family, or do you frequently complete transactions with businesses or merchants?

When will you use the app?

When choosing an app, it's also essential to think about how often you plan to use it. For instance, do you expect to send or receive money daily, or will you use it occasionally, such as when splitting expenses or paying for a group gift?

Potential benefits of mobile payment apps

Mobile payment apps can offer a range of potential benefits, from simplified transactions to convenient payment options. Here are some examples of what payment apps and e-wallets can offer:

• Easy to keep track of funds: Mobile payment apps can provide users with a convenient way to monitor their finances. It is normally quick to view transaction history and some apps can send real-time notifications when transactions are made.
• Safety and security: Many e-wallets use encryption and advanced security measures such as two-factor authentication and biometric authentication (fingerprint or facial recognition) to protect personal and financial information.
• Fraud reporting: There are normally ways for users to quickly report any unauthorised transactions or suspicious behaviour directly through payment apps.
• Convenient payments: Users may be able to make payments with just a few taps on their smartphones, potentially eliminating the need for carrying physical cash or cards. Whether it's paying for purchases at stores, splitting bills with friends, or sending money to family members, mobile payment apps can help to simplify the process.

Potential cons of mobile payment apps

It’s important to remember that there are potential drawbacks, too. One of the biggest watchouts of payment apps? Potential fees. This will normally vary depending on the payment app provider.

While many payment apps offer free basic services such as sending and receiving money, there are instances where fees may apply. For example, if users link their payment app to a credit card, they may be subject to transaction fees. Additionally, some payment apps charge fees for expedited transfers, international transactions, or converting currencies.