Here are 5 reasons to use apps to transfer money

Posted by neha sharma on April 29th, 2019

With the advancements in technology, the payments ecosystem has undergone a rapid transformation. Making fund transfers is no longer tedious and time consuming. It is now possible to transfer money not only using internet banking but also different mobile based applications. These include:

• Mobile wallet based fund transfer apps
• Mobile banking apps from different banks
• Unified Payment Interface or UPI apps

Mobile wallet based apps transfer funds to a wallet operated by the customer in the same app. This can be used to pay bills or transfer funds to others owning the same app. Mobile banking apps offered by banks can be used for traditional fund transfers such as NEFT, RTGS and IMPS. These transfer funds to the bank account of the recipient. UPI apps also transfer funds directly to the linked bank account.

Using a money transfer app to send funds has several advantages. It outscores even online fund transfers using internet banking. But why should a customer shift to a money transfer app for fund transfers when there are other modes available?

Here are 5 reasons to use a money transfer app to transfer money:

1. Convenient:

Using a money transfer app to transfer funds is extremely convenient. With the easy availability of mobile internet and smartphones, many people have mobiles through which they can transfer funds. Using internet banking ties a person down to a location and to a stable internet connection. On the other hand, using a money transfer app can facilitate convenient fund transfers wherever the customer is located.

2. Instant:

The biggest advantage of a money transfer app is that the fund transfers are instantaneous. There’s no need to wait for transfers anymore. NEFT transactions take a few hours to settle, but RTGS, UPI, IMPS and app based transfers happen instantaneously.

3. Cost effective:

UPI transactions and wallet app based transfers happen free of cost for now. NEFT, RTGS and IMPS transactions are charged but the transfer fees are very nominal and affordable. These charges differ from bank to bank.

4. Secure transactions:

Using a money transfer app is secure. Since most of these transactions are authentication based, they can only go ahead if authenticated by a PIN. Most apps have a robust security procedure in place to avoid misuse.

5. Multiple bank linkage:

This is an advantage for UPI based apps and wallet based money transfer app where it is possible to make payments from one account and receive payments in another. This makes it convenient to manage multiple fund transfers in one app.