Last year, payment app Venmo released its Venmo Teen Account, which allows kids as young as 13 to start sending each other money through their phones. But while cutting out the paper cash might seem more convenient, is it really safe for kids? In this article, we’ll let you know the pros and cons associated with mobile payment platforms and what to look for when monitoring your teen’s activity.
FIRST OFF … WHAT IS A MOBILE PAYMENT APP?
A mobile payment app links to your bank account or debit card to an App on your phone, so you can pay for things with your mobile device instead of using cash. You could use the app for:
- Sending money or receiving money from another person (called “person-to-person,” “peer-to-peer” or “p2p” payments).
- Buying something online with just the tap of a button.
- Buying something at a participating brick-and-mortar store with just a wave of your phone.
Digital payments can be super convenient and keep you from having to carry cash around, which is one reason kids like to use them. But the most important rule to remember is this: If you send someone money using a Payment App, it’s just like handing someone cash.
TIPS FOR USING MOBILE PAYMENTS SAFELY:
You should remember these safety tips when using a mobile payment app:
- Only use payment apps to send money to people you know (family and friends).
- Only make approved purchases from stores you trust.
- And never, ever use digital payments for items found on social media that you haven’t received yet.
It’s hard enough for grown-ups to remember some of these rules, let alone teenagers. That’s why if your child is using a payment app, you should be sure to use the standard parental oversight features, like spending alerts and controls, to stay informed about your child’s spending and to help them avoid overspending or falling victim to fraud.
VENMO VS. GOOGLE PAY VS. APPLE PAY VS. CASH APP
Apple Pay and Google Pay are effective ways to monitor your child’s purchases as part of a larger “family account.” They won’t let children under 18 send money to a friend, but they will allow them to make purchases online, or from certain brick-and-mortar stores that accept digital forms of payment. Meanwhile, social payment apps like Cash App and Venmo will allow more freedom to your child to send and receive money from friends, but they have more fees and privacy risks (since friends can see and comment on transactions unless you lock down the settings). They are also less widely used for actual store purchases.
AN ALTERNATIVE: JUST USE YOUR BANKING APP!
For anyone over the age of 16, all of the features offered by the mobile payment apps above are also readily available in the SNB Mobile App. There, you can:
- Send money to friends and family.
- Upload your debit card to your Mobile Wallet for contactless payments.
- Link to your children’s bank accounts for monitoring.
In addition, there are no fees and fewer privacy risks, along with easier ways to monitor your children’s financial activity. So, if you’re looking for an alternative to mobile payment apps, consider the app already offered by your banking institution. Of course, no payment app is completely safe. It is most important to talk to your teenagers about the potential dangers of using any payment app and to teach them how to use digital money responsibly.
ABOUT THE AUTHOR
Zach Ambrose is a Personal Banker at Security National Bank’s Northside location in Sioux City. A graduate of Morningside University, Zach has been with SNB for nearly four years, starting his career as a Customer Service Representative.
SNBonline.com
