According to some estimations, by 2024, less than 9% of all POS transactions in North America will involve cash. Hence, we are amidst a digital payment revolution with mobile software leading the way. Smartphone applications, popularly called cash apps, appeared on the scene almost a decade ago and now are the preferred money transfer method for many.
Services like PayPal, Zelle, Venmo, and the aptly-named Cash App have user pools of millions and are spearheading this charge. They are financial platforms that provide banking-like services and debit cards via their bank partners. Moreover, these apps have robust features that go outside of the scope of them getting used simply as a tool to send money. Below, we explain ten of their uses and why they may be the perfect money transfer solution for you.
Naturally, the primary purpose that software in this mobile app category got invented was so that its users could send and receive funds to friends and family. The terrific thing about doing this through these apps is that peer-to-peer payments are free. The software usually charges no fees, as they earn money by offering additional services.
Affiliate marketing is big business nowadays, and in hopes of growing their user bases quickly, most cash apps provide bonuses for those who get friends and acquaintances to sign-up with one of these services and send money through them to others. The referral systems implemented by Venmo and Cash App yield a $5 bonus for every referral that makes a qualifying payment and fulfills a set of other criteria. Remember, cash apps often limit the number of eligible referral bonuses to ten.
While most mobile payment software does not support peer-to-peer crypto transfers, many allow users to buy, sell, and hold cryptocurrencies in their app wallets. Only those with verified accounts have access to this feature, and varying exchange rates, plus fees, apply to each app crypto purchase. Furthermore, if you use your debit card or bank account as a funding source to buy digital coins, your bank may enforce its fees.
Though everyone associates mobile stock trading with Robinhood and eToro, cash apps also introduced this option to US residents around 2018/2019. Beginning investors will see the most value from these, as they allow users to invest small amounts through fractional share purchases and no-commission trading.
In 2022 a new US tax requirement got enforced that mandates that all income above $600 received on a cash app is taxable. Third-party payment networks now must provide their clientele with the necessary tax paperwork. Some have taken things a step further by supplying handy options that help users calculate and file taxes through these apps for free.
Betting on casino-style games of chance over the internet is becoming a more popular pastime with each passing year. Top-end platforms that house interactive gaming products have a reputation for supplying a long list of payment methods to their virtual patrons. Recently, mobile money transaction software has entered this mix. So, with some help from Google, anyone can stumble upon a high-quality cash app casino or two today.
Online stores like those run by giants such as Amazon, Target, and Walmart accept Venmo. Usually, most high-end brands in the retail Web space will seek to offer at least one mobile cash payment option. By far, Venmo is the most established choice in the US.
Since clearly, nothing will get in the way of the contactless payment craze, and it will soon become the norm, stores such as those operating under Walmart’s, Target’s, Poshmark’s, Foot Locker’s, and Forever 21’s umbrellas have begun accepting cash app transfers. Some do so via QR codes, while others only allow cash app card purchases. Food delivery companies like Uber Eats and Grubhub have also gotten with the times and now accept Venmo and Cash App.
Here is a nifty gem that few people know. Venmo, PayPal, and Cash App have integrated a tipping feature into their apps that allows users to receive gratuity through QR code transfer. All parties who wish to send a tip to someone must do is scan the presented QR code with their app’s scanner, and the payment will get facilitated automatically.
Okay, this does not apply to all US states, as each has different raffle laws. For example, Utah, Hawaii, and Alabama do not permit gambling. In other states, you should have no issue accepting and verifying raffle reservations/tickets through Cash App or Venmo.
This article was written in collaboration with iGaming analysts from OUSC.