From paying for your share of a cab ride home to giving your roommate money for rent, sending money electronically means you can settle up without visiting an ATM or writing a check.
Among money transfer services, one of the most user friendly and convenient is Popmoney, a person-to-person online payment service that allows users to send, request and receive money electronically.
How it works
Popmoney is a simple way to send people money from your checking, savings or money market account in three business days or less. If you want to transfer money to a friend, just sign up for the service through your bank or directly through the Popmoney website. To make a transfer, all you need is the recipient’s mobile phone number, email address or bank account details.
You’re also able to review upcoming or completed payments and requests—so it’s easy to keep track of who has received the money and how much you’ve sent.
Your recipient doesn’t need to have a Popmoney account, and receiving the money is free. There is a small fee to send and request funds, and there’s also a limit to the amount of money that can be sent each day and every 30 days.
How people use it
LaTisha Styles, an Atlanta-based financial blogger for the personal finance blog YoungFinances, frequently transfers money among friends and family members. “I do that with my sister a lot,” she says. “We send money back and forth.”
Styles says in particular these types of services can come in handy after a dinner with friends. “Unfortunately not every restaurant is willing to split a check,” she says. Using an online service to transfer money quickly helps everybody stay squared up. “The longer you wait to pay someone back or get paid back, the less chance it’s going to happen,” Styles says.
While electronic fund transfers can simplify financial management, John Schmoll, Omaha, Neb.-based founder of the popular Frugal Rules blog, cautions that the changing nature of moving money requires additional astuteness . “There’s a psychological aspect of using cash,” Schmoll says. “It hurts more to hand over that $20 bill.”
But when it comes to transferring money, the ease of services like Popmoney is unbeatable. “The immediate gratification of those programs is great,” Styles says.