[The New York Times] Easy to Use, Mobile Payment Apps Are Also Easy to Misuse

While they have taken steps to help prevent mishaps, a new report finds they offer few protections if, for instance, users accidentally send money to the wrong person.

View the full article on the New York Times

The use of mobile payment services has surged — along with worries about financial risks.

Services like Venmo and Zelle let people pay others or receive payments almost instantly, with a few taps on their phone. To use them, you typically download the app and link it to a bank account or credit card. Well over half of Americans use the payment tools, according to a 2022 survey by Consumer Reports.

But while they’re fast and easy, the apps can have serious drawbacks. Users can lose money if they accidentally pay the wrong person, mis-type a dollar amount or succumb to a fraud or a scam that tricked them into making a payment. About a quarter of bank customers in an October survey by J.D. Power said they or a close relative had experienced fraud via a peer-to-peer service. And according to Consumer Reports, 12 percent of frequent payment app users reported sending money to the wrong person (more)