Money On The Go - Mobile Banking Grows More Popular

A 2018 study found that 44% of Canadians use their mobile banking apps to make transactions and/or check account balances. With nearly half of the population firmly joining the digital banking revolution, it’s now clear that this technology is here to stay. In recent years, more established financial institutions allow users to transfer money online in a matter of seconds. With money going mobile, newer, more efficient banking technology seems to be on the horizon for consumers. 

Credit Card Revolution

Banks recently integrated digitized chips into their credit/debit cards to replace the swiping function of years past. While this method of payment is currently the latest trend in credit card technology, it looks as if it will be surpassed soon by even more digitization. The advent of virtual credit cards is still a relatively new trend gaining traction in the marketplace today, but it promises to have a bright future on the horizon. How virtual credit cards work is quite similar to the chip method, but can provide merchants with a one-use-only number after each purchase - providing the consumer with more security and a lower chance of fraud. Another trend in the financial world are prepaid credit cards. These work by loading a predetermined amount of money onto the card, and after each purchase with it, the balance of the card is deducted. These new credit card options give the user more control over how they choose to spend their money.

Third Party Apps 

One method of paying for goods that’s grown extremely popular in recent years are third party banking apps. Some major players like PayPal have existed for years, and this company alone sees over 7 billion transactions take place on their services every year. The idea behind PayPal and apps like it is that people can connect a bank account and/or load a certain amount of money onto their PayPal account, then transfer that money to other people, and even send invoices or pay bills.

The new kid on the block when it comes to third party money apps is called Venmo. This app allows users to send money to friends and family in a matter of seconds, all right from their phone. Much like PayPal, users create an account and can load money or a bank account onto it. However Venmo differs because it can give users access to anyone in their contact list who also uses the app. This makes splitting the dinner bill, or even paying shared utilities with roommates simpler and more efficient.  

Thanks to the internet and digitization of money, transactions and transfers are faster than ever before. And with more people adopting the technology every day, it will create a huge incentive for banks and app developers to come up with new and creative ways to let people manage their money with more speed and freedom. It seems as if the dawn of instant money is upon us.