Person-to-person payment options are nothing new. Western Union has been around for more than a century, and there were probably money transfer services before that.
With the advent of Internet technology, however, the ability to send and receive money became faster and more secure. With a smartphone or mobile device, users can transfer money to anyone they want to — regardless of time or distance.
How do you improve one's ability to instantaneously send cash to the other side of the globe?
PayPal believes that it may have found a way:
The company has just debuted a new person-to-person money transfer option known as PayPal.me — a technology that allows users to create personalized payment URLs that can be shared with friends, family and clients.
Yet what makes this payment option unique? What are the key advantages of this new approach to money transfers?
The Future of Person-To-Person Payment Options
As mentioned before, you can already send money to other individuals, with PayPal being one of the most recognizable names in the payment transfer industry. Though with this new upgrade, users benefit from a permanent URL that is specific to their banking account. Think of PayPal.me as a personalized invoicing service that doesn’t require users to generate unique statements for every transfer.
PayPal developed the underlying technology several years ago, and only recently decided to brand it as PayPal.me. This decision was likely prompted by the introduction of rival offerings from Snapchat, Square, Google and Facebook.
Yet when it comes to peer-to-peer money transfers, PayPal enjoys a substantial advantage over everyone else. It benefits from an unrivaled pool of users who are already familiar with the larger PayPal ecosystem. In fact, nearly 75 percent of U.S. adults who send and receive payments use PayPal’s platform. Migrating users to PayPal.me should be relatively easy.
However, what advantages does one receive by adopting this newer peer-to-peer technology?
The Benefits of PayPal.me and Other Person-To-Person Transfers
Arguably the biggest selling point is convenience. Users can send their personalized payment URLs via messaging app, text or email — without necessarily accessing PayPal directly.
This also means that one can send and receive money even when working on unsecured devices (like computer terminals at Internet cafés). Because there is no need to log in, you don’t have to enter personal details like usernames or passwords.
Cost is also a major benefit. PayPal.me is free when using U.S. bank accounts to send and receive money — and credit card transfers carry a low 2.9 percent fee.
The benefit to PayPal is that it can defend its territory from newer mobile payment options being offered by Google and Facebook.
What You Need to Know about Person-To-Person Payments
Like most other person-to-person payment solutions, PayPal.me is primarily targeted for the consumer market. However, as a business owner, this solution offers an affordable and convenient way to collect payments from customers. If you're tired of sitting to log in and create highly individualized invoices for each transaction, PayPal.me may be ideal for your business.
To learn more about person-to-person money transfers, contact our payment security team today for a free consultation.