Millions of Americans are paying each other without actual paper cash ever changing hands. It’s all done through peer to peer payment services, like Venmo, Zelle, and Square Cash. But are they secure? Do they protect your privacy? Consumer Reports put these P2P services to the test to see if they can be trusted to transfer your money and keep your data safe.
It’s a convenience that’s growing in popularity. From millennials to baby boomers, an estimated 79 million Americans will use a mobile peer to peer payment service this year. But with consumers worried about data breaches and hacks, can P2P services be trusted?
Consumer Reports rated 5 of them, focusing on privacy and security.
Although there are differences consumers should know about. Apple Pay, for instance, was the only one to score top marks for data privacy.
"They try to take the least amount of data and keep the least amount of data to keep your privacy protected," Stanger explained.
However, it’s only available if both the sender and the receiver use an Apple smartphone, watch, or tablet—and a newer version at that. In fact, that’s one thing to note with P2P in general. You have to use the same service to exchange funds.
"So, I have to have Zelle, you have to have Zelle. I have to have Venmo, you have to have Venmo," Stanger said.
Depending on which service you use, accounts are linked to your bank account, credit or debit card, prepaid card, or PayPal account. So if you do sign up for a P2P service, Consumer Reports recommends you opt for the highest app privacy and security settings possible. adding, for instance, a PIN or fingerprint authentication.
"You should really only pay people that you know," Stanger said.
Also, you want to keep your app up to date. Hackers are always trying to find new vulnerabilities so make sure you are using the most recent version available.
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