P2P payment platforms and Venmo’s teen account explained

TL;DR Breakdown

  • Venmo has launched a new account for teens aged 13-17, facilitating digital payments under parental supervision.
  • Peer-to-peer (P2P) platforms are widely used across the U.S, particularly among 18 to 29-year-olds.
  • Several P2P apps have faced issues with digital wallets, scams, and customer service, urging users to proceed with caution.

The digital world has introduced a novel method of money transfer for the younger generation, where peer-to-peer (P2P) platforms are now emerging as efficient financial tools.

Coupled with this innovation is a potent opportunity for parents to tutor their children on how to utilize these tools judiciously while sidestepping potential stumbling blocks.

Leading the march in this arena, Venmo, on a recent Monday, launched a dedicated account catering to teenagers. Parents can initiate these specialized accounts, endowed with specific features for children aged between 13 to 17 years.

The initiative by Venmo, where individual account holders have to be 18 years or older, is a strategic move to introduce teenagers to the world of digital payments under parental guidance.

Venmo’s teen account, replete with a debit card, can be enriched by a parent’s account through various linked sources. This arrangement gives parents an oversight into their teen’s financial transactions and requests for friendship.

Additionally, they also gain control over privacy settings, ensuring safe transactions.

The P2P phenomenon: A closer look

P2P apps, now prevalent across the United States, have become a staple in 64% of adult transactions. Notably, the younger demographic, ages 18 to 29, contributes to 81% of these transactions, as indicated by a 2022 Consumer Reports study.

While P2P apps like Cash App, Square Cash, Apple Wallet, and the Venmo parent company, PayPal, have introduced features for teen users, each comes with its unique set of requirements. For instance, PayPal still mandates users to be 18 or older.

Consumer watchdog Teresa Murray of the U.S. Public Interest Research Group (U.S. PIRG) has emphasized a cautious approach towards P2P apps. Her warning stems from the realization of the potential pitfalls users can face.

The U.S. PIRG’s analysis of approximately 9,300 complaints to the Consumer Financial Protection Bureau from 2017 to 2021 revealed consistent issues with digital wallets, scams, and customer service across several P2P apps.

In a survey conducted by LendingTree in 2022, nearly a quarter of users admitted to having mistakenly transferred money to the wrong recipient, while 15% reported being victims of scams. This illustrates the real-world implications and complications that can arise when using these services.

Smart practices for the P2P user

Murray suggests that users fund their P2P accounts via credit cards, which offer greater protection under the Truth In Lending Act and Fair Credit Billing Act in case of mishaps.

She further advises against using P2P apps for payments to unknown parties and recommends asking for a payment request from the app before initiating any transaction.

With the rise of P2P platforms, it’s paramount that young users protect their transactions and account access. Additional security measures include making transactions private, employing extra authentication for app access, and refraining from sharing authentication codes.

As teenagers take their first steps into the world of digital payments, financial planners urge parents to maintain open communication about money matters. Desiree Kaul, a certified financial planner at Main Street Planning, encourages parents to keep the lines of communication open.

The P2P revolution is here, and it’s crucial that parents equip their teens with the knowledge to navigate this new financial landscape safely. As long as children feel comfortable seeking answers, they’ll always have a safe place to turn when they encounter a financial question.

In the end, the digital future is already here, and it is our responsibility to ensure our children are ready for it.

The contents of this article are partly inspired by a recent CNBC report.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:P2P payment platforms and Venmo’s teen account explained

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年5月25日 16:08
Next 2023年5月25日 17:48

Related articles

  • JPMorgan analysts predict SEC will approve multiple spot bitcoin ETFs following Grayscale’s legal victory

    TL;DR Breakdown JPMorgan analysts predict that the U.S. Securities and Exchange Commission (SEC) is likely to approve multiple spot Bitcoin ETFs following Grayscale’s recent legal win, which challenged the SEC’s rejection of its ETF application. The SEC’s decision to delay rulings on spot Bitcoin ETF proposals from various companies until mid-October is seen as an indicator that multiple approvals are on the horizon, potentially lowering ETF fees through increased competition. While the approval of spot Bitcoin ETFs could be a game-changer, analysts caution that similar products in Canada and Europe have not seen significant investor interest, leaving the broader impact on the cryptocurrency market uncertain. Description In a pivotal development, analysts from JPMorgan, led by Nikolaos Panigirtzoglou, forecasted that the U.S. Securities and Exchange Commission (SEC) is poised to approve several spot Bitcoin Exchange-Traded Funds (ETFs). This prediction emerged following Grayscale’s landmark legal win against the SEC, a decision that could reshape the cryptocurrency landscape. Earlier in the week, a federal … Read more In a pivotal development, analysts from JPMorgan, led by Nikolaos Panigirtzoglou, forecasted that the U.S. Securities…

    Article 2023年9月4日
  • Can You Buy Cryptocurrency With A Credit Card?

    The answer is yes. Many users prefer credit cards for a variety of reasons. Here’s why you should consider using one to buy crypto. Some users prefer wallets or bank transfers to buy crypto. These methods incur the lowest fees, but they can be slow for someone that likes convenience and speed. In this case, credit cards are the best option. At Toobit, you can buy crypto with everyday fees using a VISA or Mastercard credit card. Alternatively, Toobit also provides crypto purchases via fiat deposit. If you’re interested in buying crypto with a credit card, check if your card issuer and payment network allow the transaction type. Credit card issuers that block crypto purchases have varying reasons. Capital One, for example, decided to decline cryptocurrency purchases to protect cardholders from fraud, losses, and market volatility. Note: To ensure your credit card is suitable, we recommend double-checking before initiating any crypto transaction with your credit card issuer. Why Should I Buy Crypto With a Credit Card? Here are all the benefits of using one to buy crypto — which often…

    2023年5月30日
  • PayPal launches a cryptocurrencies hub feature

    Description In the ever-evolving world of cryptocurrencies, a titan emerges with yet another bold move. PayPal, known for its disruptive and innovative strategies, reveals its latest card in the game – the “Cryptocurrencies Hub.” Now, if you’ve been keeping an eye on the digital wallet giant’s movements, you’d know that their dive into the crypto world … Read more In the ever-evolving world of cryptocurrencies, a titan emerges with yet another bold move. PayPal, known for its disruptive and innovative strategies, reveals its latest card in the game – the “Cryptocurrencies Hub.” Now, if you’ve been keeping an eye on the digital wallet giant’s movements, you’d know that their dive into the crypto world isn’t new. However, this latest play is bound to stir up some waters in the industry. Cryptocurrencies Hub: A Leap or a Stumble for PayPal? In a time when every other tech firm seems to be throwing their hat into the crypto ring, PayPal’s Cryptocurrencies Hub offers its users an integrated experience. From Bitcoin to the recently launched stablecoin PayPal USD (PYUSD), users can now do…

    Article 2023年8月14日
  • Pond0x Token Launch Fiasco Results in Massive Investor Losses

    TL;DR Breakdown The launch of the memecoin Pond0x has led to significant financial losses for investors, with the token’s price collapsing from $0.36 to near zero within five minutes of launch. Confusion arose as the web app allowed users to mint new PNDX tokens in exchange for Ether (ETH), while some users expected the fundraiser to be done on Uniswap. Investors reportedly lost over $2.2 million in the launch, with some users claiming to have lost thousands or even millions of dollars. A user reported that PNDX has a faulty transfer function that allows users to transfer coins from any other user. Description The launch of the memecoin Pond0x has led to a significant financial loss for investors, with losses amounting to millions of dollars, according to multiple reports on social media on July 28. Data from the Maestro trading app shows that the Pond0x (PNDX) token reached a price of $0.36 before collapsing to near zero within … Read more The launch of the memecoin Pond0x has led to a significant financial loss for investors, with losses amounting to…

    Article 2023年7月29日
  • The U.S. is never going into recession – Here is why

    TL;DR Breakdown U.S. Treasury Secretary, Janet Yellen, asserts the U.S. economy is on a good path and doesn’t expect a recession. U.S. is controlling inflation effectively and the labor market remains strong despite global concerns. No immediate plans for U.S. tariff reductions as part of efforts to normalize relations with China. Description As global markets continually adjust to fluctuating economic conditions, there is a palpable fear of a looming recession. However, it seems the U.S. has found a way to keep such economic downturns at bay. The country’s economic fortitude, highlighted by Treasury Secretary Janet Yellen’s recent optimistic comments, paints a picture of an American economy not … Read more As global markets continually adjust to fluctuating economic conditions, there is a palpable fear of a looming recession. However, it seems the U.S. has found a way to keep such economic downturns at bay. The country’s economic fortitude, highlighted by Treasury Secretary Janet Yellen’s recent optimistic comments, paints a picture of an American economy not only weathering international financial turmoil but also setting the stage for continued growth. U.S. is…

    Article 2023年7月18日
TOP