Back in 1871, if someone wanted to transfer money to another person, they used Western Union's telegraph (the original text messaging service). Today, you just touch your cell phone. New P2P mobile applications and plain old text messages eliminate the need to tra🦄vel to a physical location to move cash.

Lots of Options

You may already be one of the hundred-million-plus people worldwide with a PayPal account. The company allows you to transfer money via text domestically and overseas✨ for free unless you use a debit or credit card to send the cash.

Competitors have entered the market offering a wide variety of transfer options. Some are free but require both sender and receiver to have an account. Venmo is a popular cꩲhoice 🏅and charges no fees on certain transactions and setups, but it is geographically restricted.

Banks like Wilmington and Trust Bank of America have morphed traditional services to be mobile compatible, but the ultimate 澳洲幸运5官方开奖结果体彩网:mobile payment servi🐽ce is the e-wallet. And let's not forget the advent of Apple Pay and𒆙 Samsung Pay, among others.

Companies like Mobile Giving Foundation provide electronic donation services to charitable organizations like the Red Cross. You can even set up monthly payments. Fundraising becomes as easy as "text REDCROSS to 90999 and make a $10 donation to American Red Cross Disaster Relief."

The donations are then aggregated from cell phone carriers and forwarded to the Red Cross. The company charges a setup fee and earns a transaction fee for each donation plus 澳洲幸运5官方开奖结果体彩网:commissions based on the amount of the donations.

Is It Safe?

Mobile payments are regulated. Money Services Businesses (MSBs) must be licensed in the state(s) where they do business and must comply with suspicious activity reporting and 澳洲幸运5官方开奖结果体彩网:money laundering regulations enforced by the 澳洲幸运5官方开奖൩结果体彩网:Financial Crimes Enforcement Network of the Treasury Department.

Just like ꦓany o🥂ther business, there are potential scammers, so individuals must take care to know whom they are texting.

The evolution of mobile technology is also making mobile payments more secure. Newer smartphone apps facilitate direct connection and authentication of payers and recipients. They use technolo🦹gy security companies to create trusted sites and applications accessible to mobile users.

How Does It Work?

Widely accepted communications protocols allow mobile phones to communicate with each other. By embedding keywords into text messages sent to specific numbers, cell phones can transmit commands that tell the wireless provider to add a given amount of money to the user's bill. When the bill is paid, the phone company transfers the amount designated to the recipient.

Some carriers may charge a fee for sending the text message according to the user's existing phone plan. Traditional banks allow access to accounts through mobile applications without using the wireless carrier as an intermediary.

To send or receive money to a friend:

1. Register with a money transfer service by setting up an account and making a deposit.
2. Use the provided short text commands to text cash to your friend's phone number or account ID.
3. Receive funds by requesting and accepting payments via text message.

To make a donation to a charity:

1. Text the given keyword to the number provided. There's no need to have any accounts with money transfer services.
2. You will receive a confirmation text message.
3. Pay your phone bill, which will include the amount you donated.
4. Your wireless company will send your donation to the charity.

Worldwide Acceptance

The U.S. is catching on to text payments. It may not be a surprise that Europe and Asia were 澳洲幸运5官方开奖结果体彩网:early adopters, but mobile payments have had their biggest impact in areas where othe﷽r payment systems are scarce. In Kenya, the popular M-PESA system of text payments is widel𒐪y accepted as a form of money transfer for everything from groceries and school tuition to electric bills.

Launched in 2007, M-PESA has made it possible for more than 51 million active customers to make $314 billion in transactions per year. Over 918,500 active agents allow customers to open accounts and use the system to buy goods and services for a small transaction fee. Kenya has experienced increased commerce as a result.

The Bottom Line

Using your cell phone to transfer funds and make payments has become an efficient and common form of paymen💫t in the last few years. It is a safe a𒊎nd secure method, and with most phones requiring facial or fingerprint recognition for access, it has become more secure than carrying around a physical credit card.