Payment Apps: Making Payments Easy

What are Payment Apps?

Payment apps allow you to make payments using your phone. These apps can make paying at the store easier by allowing you to link your credit cards or bank accounts to the app. Then, you can make payments directly from the app without having your credit card, debit card or checks present. Depending on the app you download and your phone, you may be able to pay by tapping your phone at a point of sale rather than swiping a credit card. Other payment apps or phones could allow you to pay by displaying a code that the cashier can scan.

Payment apps allow you to send money to friends and family. The apps generally allow you to send money to an email address or a phone number but other apps let you send money to your friends through social media, too. Most payment apps allow you to make and receive payments for free if you’re using a bank account or an in app balance. However, if you use a credit card, you may have to pay a fee to send or receive money.

Additionally, apps may charge other fees if you want to move the money out of your app account and into your bank account. Apps may also have limitations as to how much money you can send within a given day, week or month.

Payment apps can make your life a lot easier. Rather than worrying about carrying around multiple credit cards or other payment methods, you could store them all in a payment app. Another nice perk is you don’t have to worry about cancelling a bunch of cards when you lose your wallet or purse. Even if you lose your phone, as long as your phone is properly secured, you shouldn’t have to worry about someone else accessing your payment information.

If you don’t have a compatible phone, there’s no way to use some payment apps. Thankfully, there are plenty of payment options that don’t involve apps. You can still swipe your credit card, pay by check, through PayPal.com or through your bank’s bill pay service.

When you’re looking for a payment app, you should consider multiple factors. First, you’ll want to make sure the payment app is compatible with your phone. For instance, Apple Pay won’t work on Android devices. You’ll also want to consider how much the app costs to use. Some are free, others may charge fees to send or receive money.

INSTRUCTIONS

The uncontrolled proliferation of payments apps in this country will become a major concern. It comes with a set of promises and perils.  

a) There will come a time when we have to download so many payment apps into our smartphones (SETEL, E-Wallet, etc) that it becomes unmanageable.  Give your views on this.

b) Every trader would like to develop their own payment apps which simplifies payments for purchases and also store security (less cash collection by the store).

c) Suggest national policy changes that are necessary to control the number of payment apps in the market so that it will not burden the consumer.

d) Do a complete search of the literature and conduct some expert interviews on the future of payment apps in Malaysia – its promises and perils. Come up with workable solutions that the government should consider.

e) Write a research article on this topic (Malaysian case).