P(ay) O(ther) P(eople) Money
Basically, it’s a way to send another person money. The company was founded in 2010 and over 1,400 financial institutions are a part of the Popmoney network. Even if your bank or credit union is not a part of the network you can still use Popmoney to send money to someone.
Popmoney was designed to replace traditional checks. Most of us teens have never even written a check. I have a checking account but I think I have only written three or four checks since I got the account when I was 13. Most of the time I just use my debit card and I rarely carry cash. That’s where Popmoney comes in. If I know a person’s cell phone number or their email I can send them money directly from my account.
There are other services out there that do something similar. The biggest one being PayPal. There are a few differences between PayPal and Popmoney. If you are sending money on paypal the person getting the money normally has to pay a fee, especially if you are paying a business. With Popmoney the person sending the money pays the fee. It’s normally about $1 per transaction but if you are a 121 member then the fee is only 50 cents.
Another difference is that PayPal will link to a credit card as well as directly to your account where Popmoney will only link directly to your bank account. Of course, some of us might tend to get in trouble using a credit card so it might be best for it to be connected to your account.
Here is a great video about Popmoney that explains exactly how it works:
I love the idea of being able to send money to anyone, anywhere, right from your phone!
Do you already use Popmoney or PayPal? What do you think? Love to hear if you have any experience with using this service!