Despite concerns around privacy and a recent settlement between mobile payment service Venmo and the Federal Trade Commission over consumer disclosures the agency found misleading, the popularity of mobile money services seems unlikely to suffer.
The popularity of Venmo in particular – a "digital wallet" that allows users to send and receive funds via text message – has sped up the pace of such everyday person-to-person transactions as splitting the rent payment or paying your friend back for that burrito.
Driving the Speed of Money
Okay, so maybe those are not your everyday transactions. However, the convenience of instant transactions is rapidly becoming less of a novelty and more of an expectation with consumers. Companies such as Venmo and multi-bank, person-to-person payment service Zelle (which partnered with Chase to create Chase QuickPay) are driving those expectations.
Venmo reportedly handled nearly $18 billion worth of transactions in 2016, and has now expanded into person-to-retailer transactions, authorizing merchants to accept mobile payments via the app. Venmo can also be used as a payment method to merchants who use PayPal, Venmo's parent company.
The trend toward instant transactions affects payroll companies as well.
Keeping Pace with Consumer Expectations
Many payroll businesses have explored transactions such as instant bill paying and same-day payroll options to keep pace with customer expectations in today's rapidly changing financial landscape. At the same time, many customers also expect protections against fraud and security risks.
At SBS Payroll, we provide our clients with solutions that combine payroll and HR needs. Our suite of cloud-based human capital management (HCM) solutions brings together time tracking, payroll processing, benefits compliance, ACA compliance and human resources. All of it is backed by cutting-edge technology, guaranteed security and unmatched customer service.