Online Peer-to-Peer Mobile Payment Systems: What's Out There?

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What are peer-to-peer payments? In short, they're an easy way for people to transfer funds from their bank account to another person's over the internet or by using a smartphone. It allows users to avoid having to make a traditional bank account transfer.

Typically, third-party companies provide peer-to-peer services for people - a person will usually transfer their money from their bank account or an account with the service.

There are a number of things to look for when choosing a peer-to-peer platform. For starters, fees and limits have to be taken into consideration. If you're expecting to make a high number of transactions, then you may be better off choosing a plan featuring a percentage fee per transaction. If you're making larger, but less frequent, payments, then a fixed fee may be a better deal for you. Limits also come into play here, so be sure to choose accordingly.

Security is another issue at stake. It seems like every other day, there's a news story about hackers taking control of financial information, and so peer-to-peer providers all emphasize their own security. But some of the technology is unproven, so make sure you align yourself with a program that has higher levels of security.

Consult the chart below, courtesy of FindtheBest.com, to compare different peer-to-peer services.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




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