Sending money through messaging apps

Messaging Apps For Sending Money: Are They Safe?

What makes messaging apps so important nowadays? Perhaps it’s their built-in capability to let you connect with someone a thousand miles away. Whether it’s via text chatting or video chatting, you can instantly be closer to that distant person with messaging apps. Or maybe it’s their relevance to the changing needs of the world, where relationships form from nothing into something just by a few words spoken with one another.

Wait, there’s more…

Or maybe it’s the myriad of activities that one can do in them. A smiley or emoji lover can have tons of fun sending quirky faces to friends or loved ones. Captured images and videos can be easily send through such apps. That’s not all though, recently, messaging apps have been changing, incorporating even more complicated and unrelated tasks into them. For instance, did you know that many messaging apps can enable you to send payments to friends or family members within a few clicks?

Not just for texting or video calling, but also for sending money Think about it, if you’re a user and you can do everything in one app, wouldn't that make you a loyal client? Say you’re talking to your mother and you need some money for your school project, instead of going outside the chat to send money, you won't need to do so. Ultimately, these are what the messaging app developers want, because the more time the client stays in the app, the more beneficial it is for the owners.

It works the other way around too. If someone isn't too well-versed in the world of online payments or sending money, what better way to get introduced to it than a messaging app? The user-base of such apps are very huge, think about Facebook Messenger or even Skype. Thus, if a messaging app introduces this feature, chances are, even some of that user-base percentage would try this out, even if they don't known much about it.

Who started it all?

If you can remember, it was Snapchat who first introduced this sending money feature.

While the official app was launched in 2011, it was in 2014 when the owners partnered with Square and launched Snapcash. Thereafter, giants like Facebook Messenger, WeChat and Viber followed suit. Of course, if we’re playing the first card here, we can’t dismiss Venmo and Square, the original peer-to-peer money transfer applications in the world.

Many options when it comes to messaging and sending money but…

While this feature is still not that extensive or comprehensive, you can usually find it in popular and well developed apps in the market. If we have to take note of one thing is that these messaging apps and their send money feature is usually for personal transactions only. Splitting bills for movie dates, sending money to your loved one residing in the same country or paying for a small debt to a friend, these scenarios are perfectly acceptable for using the send money feature of these apps.

But if you’re a business or merchant wanting to find ways to pay your suppliers, sending money via messaging apps won't be feasible. The same goes for workers working abroad and wanting to send money to their loved ones. Remember that these platforms were created for social interactions mainly. The added functionality of being able to send money usually works for small cash transactions within the same country only.

Finally, this functionality of being able to send money is not yet available on all countries. Perhaps you’re residing in the US and you want to send money to someone in Thailand, then it’s better to choose the more conventional ways of sending money like using banks or money transfer companies. Don't sweat it out though, in the near future, more and more messaging apps would be including Asian countries within this send money feature.

Known messaging apps for sending money It is always important to know which are the most reliable apps when it comes to sending money. A messaging app should have the basic features of security, user friendliness and trust worthiness before you make use of them for sending money. The truth is, sending money online is never risk free. How many times have you heard of people losing their money through transactions made through the internet? And just how many times have you heard of people being successful in recovering their money? You know the answers to these questions and so you should always let them guide you.

1. Snapchat (Snapcash) Claim to fame: When Snapchat was first launched in 2011, it was a big hit to users because of the novelty and uniqueness of the messaging app. Instead of the usual text chats or video chats, Snapchat allowed for the sharing of photos or short videos, known as snaps. These snaps can be seen for a short-time by friends or followers of the user.

It then expanded its features, including text messaging, video chatting and sending money via Snapcash.

Reach: Snapcash is only available for users residing in the US. Further, one must have a working debit or credit card. He or she must be 18 years old and above to be able to register for an account in the messaging app.

How it works: Simply sign up for a Snapcash account, link your debit card or credit card, which is done via Square, and you’re good to go. To send money to a friend or

family member, just type in the dollar ($) sign to the chat box and the app would recognize that you are trying to send money. Continue typing the required amount and click Send which is the green Snapcash button. The recipient must also have a working Snapchat account and must link his or her debit or credit card to receive the money.

Not so good stuff: Snapchat has had many security issues over the past years. It has been hacked several times, with the important information and photos of its users having been exposed to the internet world by the hackers. While Square is the main encryptor for the send money feature of Snapchat, it’s still important to exercise caution when using Snapcash. Another downside is that once you sent the money, there’s no way to get it back, especially if you have sent it to the wrong person or you have entered the wrong amount.

2. Facebook Messenger Claim to fame: Facebook is the king of all social media platforms. Within the social media giant, you can post your own status, pictures or even videos. You can see what your friends have been up to as long as they update their profile page. One aspect of Facebook is its messenger app which was met with reluctance at the beginning of its launch. Yet today, Facebook Messenger is no doubt an all-in-one messaging app, for chatting, video calling or recently, sending money, as it partnered with foreign exchange company, TransferWise.

Reach: In 2015, sending money via Facebook Messenger was only available in the US. But a new update in 2017 revealed that those residing in Australia, Britain, Canada and Europe can also now send money with one another using the messaging app. So for residents of these countries who have a Facebook Messenger app and account plus a working debit card, they can make use of the send money feature.

How it works: If you want to send money using the Facebook Messenger app, you need to link your debit card to your profile. Once done, you can open a chat with your friend or family member whom you want to send money to. Click on the three little dots on the side of the chat box and click on Payments. Enter the amount you want to send and hit on Send.

Not so good stuff: There are two downsides to sending money via Facebook Messenger. First is that only debit cards are accepted as funding and receiving sources. Sec-

ond is that it can take around three to five days before the money can show up in the recipient’s debit card.

3. WeChat Claim to fame: WeChat was launched in 2011 and its main user base is of the Chinese population. It is one of the most widely used messaging apps in Asia. Its very easy user interface, along with its many features such as text chatting, video calling and emoticon addition, has made it a fun and novel way of messaging for the young or old. Its one feature is WeChat Pay, available in some Asian countries and of course, China, which enables users to pay for goods or services or send money to loved ones or friends while in the app.

Reach: WeChat Pay is only available in China, Hong Kong, Thailand, Indonesia and some more Asian countries. You need a WeChat account, along with a working debit or credit card to be able to use this feature. WeChat is planning to expand its send money feature to Western and European countries in the following years.

How it works: To start using WeChat for sending money, click on your Profile, then on Wallet. Add in a working debit or credit card and input your mobile number. A confirmation message would be sent to your mobile number which you need to enter in the app to activate your WeChat Pay account. Once done, you can start sending payments to your loved ones or friends.

Not so good stuff: The main downside of WeChat Pay is that it is not yet available in Western and European countries. Further, though WeChat Pay has extensive features in China, you can use it to pay for bills or for goods, the same cannot be said for other countries. The developers also did not highlight just how fast is the transfer speed if you intend to use the feature for sending money to loved ones or friends.

4. Viber Claim to fame: Viber is known for its sleek and no-nonsense user interface. It is suitable for minimalists and also classy design lovers. Originally, it was established in 2010

by Israeli-based company Viber Media. While it doesn't have that huge number of features, it gained popularity for its straightforward design. After being acquired by Japanese company, Rakuten, it has been further developed and recently, a send money feature was added into it.

Reach: Right now, sending money through the Viber app is only available for residents of France, Ireland, UK and US. You can send money locally or internationally if you are in any of these four countries. In addition to a working Viber account, you would also need a working phone number to prove that you do reside from these countries. Additionally, you would be prompted to create a Western Union account within the app.

How it works: Open the Viber app and create a chat with the supposed recipient of the money. Click on the More Options button, the three dots, and click on Send Money. Fill in the required information like the name & location of the recipient, the amount you’re sending and how he or she wants to receive the money. Click Continue and you would be prompted to login to your Western Union account. If you have an attached debit or credit card, click on Continue and then Send. Take note of the receipt number which your recipient would need.

Not so good stuff: Right now, sending money from any of these countries is free. But after this limited time, the set transaction fees would be applied. So that’s one downside with sending money through Viber, it is not completely free. Further, there’s a limited amount you can send per transaction as well. You can refer to the table below for the limits for US residents.

5. Skype Claim to fame: When it comes to video calling, Skype is perhaps the precursor of it all.

Since its launch in 2003, the messaging app has retained its cool and relaxed appeal. It has also been updated and already includes chatting and conferencing capabilities. In 2017, Skype partnered with PayPal to incorporate a send money feature in its messaging app.

Reach: As of now, this feature is available in 22 countries including Austria, Belgium, Canada, Finland, Germany, UK and US. You can also send money in various currencies, like USD, EUR, CHF and HKD. You need to have a working Skype account and a verified PayPal account to use this feature of the app.

How it works: Sign into your Skype account and choose the supposed recipient of the money, start a chat with him or her. From the Add-Ins, select Send Money and fill in the required information like your country, the recipient’s country and the amount you want

to send. A PayPal login would pop up, input your information, link your Skype account and done.

Not so good stuff: The main downsides of this feature lies within PayPal itself. Sending money internationally via PayPal can cost a lot. But if you just want to send money locally, you are good with this messaging app. There are no transaction limits per month too but receiving the money can take as long as three days.

Summary of Guide Highlighting the Differences Between These Messaging Apps Messagin Partner g App

Fee

Availabilit y

Sending Limit

Balance in Account

Transfer Speed

Snapchat

None

US Only

2,500 USD/ Week

No

1 to 2 Days

Facebook Transfer Messeng Wise er

None

Selected Countries

9,999 USD/ Month

No

3 to 5 Days

WeChat

Western Union (US Market)

None

Selected Asian Countries

50,000 CNY/Day (Utilities) or 3,000 CNY/Day (Virtual Items)

Yes

Not Specified

Viber

Western Union

Varies (Free For a Limited Time)

Selected Countries

500 USD/ No Transaction (Cash Pickup) or 750 USD/ Transaction (Bank Account)

1 to 2 Days

Skype

PayPal

Varies

Selected Countries

No Limits (Verified PayPal Account)

2 to 3 Days

Square

Yes

Sending money made easier with messaging apps‌ Aside from their connecting functionalities, messaging apps have become more important nowadays because of their all-in-one capabilities. From chatting with your friends, a swipe or a click can lead you to sending them that long-forgotten debt. It’s a very efficient and time-saving tool, where you won't need to find another app just for sending or receiving money.

Of course, certain risks can still be experienced by the users. For the most part, messaging apps were created for their social aspect. They won't be able to fully replace known money transfer companies or even bank-to-bank transactions. Treat them as alternatives for low-value money transactions. Like, if you just need to pay a debt or send a short amount of cash to your relatives.

Be very cautious and always assign pins to these messaging apps so transactions can be more secure. Never disclose your passwords to anyone as it can lead to privacy breaches or even account hacking. And finally, choose wisely, as not all apps are truly safe to use, especially for cash transactions.

How about you, what are your thoughts on using messaging apps for sending money?

Are they truly worth the risk? Do they make life easier or do they make your accounts more vulnerable? Share your thoughts on the comments section below.