UNDERSTANDING
PEER-TO-PEER
MOBILE PAYMENTS
There are many options to send money without having to find an ATM or bank to withdraw cash. Many
of these payment options are called “mobile payments” which are done through a mobile device
where the individual downloads a mobile payment app and send money immediately. Within mobile
payments, a segment of payment options is called peer-to-peer mobile payments. These payments
options allow customers to transfer funds from their personal account (bank or credit card) to another
person’s account via the Internet or a mobile device. This method of transferring funds eliminates the
need to find an ATM or branch to withdraw cash or even writing a check.
Mobile payments have been around since 1997 when Coca-Cola introduced a limited number of
vending machines where consumers could purchase drinks through a text message process. Since
that time, the number of mobile payment vendors has increased drastically which allows consumers
to send and accept money without their financial institution involved.
Peer-to-Peer Options
PayPal is one the most well known mobile payment companies, today; however, Google Wallet, Venmo,
Square Cash and financial institution’s peer-to-peer payments have grown in popularity. So, which of
these mobile payment services should you use to send money to family, friends, and others? The answer
depends on what your preference are, so let brief look at each of them.
PayPal is the most established provider in the mobile payments space and can provide you an all-in-one
solution, from online shopping payment options to lines of credit. PayPal offers consumers the ability
to connect via their debit card, credit card, or bank account.
For avid Google fans, Google Wallet may be a better option as it offers a consumer the same capabilities
as PayPal; it is free compared to PayPal, which charges 2.9% + $0.30 per transaction.
Venmo is a mobile payment application where users can send money by using a bank account, debit
card, credit card or prepaid card. Sending money via Venmo using a credit card will apply a 3% fee
to the transaction. Receiving money using the Venmo app is free. Venmo takes a different
approach for consumers, by allowing individuals within your social network to see whom you are paying
and how much.
Member FDIC
Square Cash provides end users similar capabilities as PayPal, Venmo and Google Wallet. However, it
allows you to request and send money from contacts using an email message, the Square Cash app,
the Square Cash website, Snapcash, or Apple Watch. With transactions linked to a bank account, the
transactions are free while transactions using a credit card will be charged 3% of the amount.
Many financial institutions, such as KleinBank provide person-to-person payments through their online
and mobile applications that automatically connect to your account. This process seems easy, when
compared to all the other mobile payment solutions, they request you input your checking account
number or debit/credit card number to send and receive money. So the question remains, why should
you choose a different payment method? See page 3 for a handy chart that provides a comparison of
the different payment options. All offer similar security and compliance regulation standards. All offer 24-hour fraud and risk protection teams, comply with Payment Card Industry Security Standards (PCI) and many offer multi-factor
verification prior to sending the payments.
The one major benefit that your financial institution has over the other mobile payment solutions is
that you are not providing your checking account number, debit, or credit card information to another
payment provider. At KleinBank or other financial institutions, that information stays secure to you.
For any additional information, please check out KleinBank.com, or contact our Solutions Center at
888-553-4648.
References:
NFC (nd). History of Mobile & Contactless Payment Systems. Near Field Communications. Retrieved from http://nearfieldcommunication.
org/payment-systems.html
Member FDIC
Popular Person-to-Person (P2P) Payment Methods
KleinBank Popmoney
PayPal
Venmo
Google Wallet
Square Cash
Ways to Access
Android, Apple and
Web
Android, Apple and
Web
Android, Apple and
Web
Android, Apple and
Web
Android, Apple and
Web
Payment Types
Credit, Debit and
Bank Transfer
Credit/Debit Cards
and Bank Transfer
Credit/Debit Cards
and Bank Transfer
Credit/Debit Cards
and Bank Transfer
Credit/Debit Cards
Credit Fee
$3.00 - 3 day
$5.00 - next day
2.9% + $0.30
3%
Free
3%
Debit Fee
$3.00 - 3 day
$5.00 - next day
2.9% + $0.30
Free
Free
Free
Bank Transfer Fee
$1.25
Free
Free
Free
N/A
Withdrawal Speed
Next day & 3 day
3-5 business days
1 business day
3 business days
1-2 business days
Transfer Limits
$2,500 - 3 day
$1,500 - next day
$10,000
$3,000
$9,999
$2,500
What Sets it Apart?
Ability to send via
PayPal.me shareSMS, email, and bank able links (personal
account.
link). International
payments.
Quick transfers to
banks. Social feed of
your friend’s recent
transactions.
Can attach a
payment to a
Gmail message.
No account required
for a user receiving
money. Only need
to input debit card
to receive money.
A $5 referral for
anyone who sends
over $50.
Compliance/FDIC
Insured
Comply with online
and digital security
standards from the
FFIEC and FDIC for
P2P payments. All
Credit and Debit
card transactions
comply with Payment Card Industry
Security Standards
(PCI-DSS). 24-hour
fraud and risk
protection teams.
KleinBank App has
security with fingerprint authentication
and one-time passcode protection.
Comply with the
Payment Card
Industry Security
Standards (PCI DSS).
Has a 24-hour fraud
and risk protection
teams. App is PIN
protected.
Comply with the
Payment Card
Industry Security
Standards (PCI DSS).
Has a 24-hour fraud
and risk protection
teams. App is PIN
protected.
Comply with the
Payment Card
Industry Security
Standards (PCI DSS).
Has a 24-hour fraud
and risk protection
teams. App requires
security code from
debit/credit card
prior to payment.
10/16
Comply with the
Payment Card
Industry Security
Standards (PCI DSS).
Has a 24-hour fraud
and risk protection
teams. App is PIN
protected