An Explanation of Digital Payments: What Your Child Needs to Know

“I’ll Venmo You”

Digital Payments are Here to Stay

Whether we like it or not, our phones sometimes feel like a fifth appendage.  We email, text, shop, FaceTime and shamelessly attempt to Tik Tok (did we even say that right?!).  For many of us, our phones have also become our primary mode of payment for the things we want and need.  Groceries? Babysitters? New sneakers? We paid for them all through digital payments.  

There is no doubt about it.  Digital payments are the way of the future.  Cash use is down, checks are falling by the wayside and even debit cards feel cumbersome these days. Many of us have gradually shifted our spending to be almost entirely online, so it's worth noting the top three digital payment contenders.  

Discuss Digital Payments With Your Child

We’ve said it before and we’ll say it again (and again, and again)... let your kids in on the secret.  If they can get a grip on at least a few of the most popular digital payment methods, you won’t be speaking a foreign language when you gratefully yell after the plumber, “Do you take Apple Pay?!” as he walks out the door. 

An Overview of 3 Popular Digital Payment Options

While our kids don’t need to be privy to all of the digital payment details outlined below, just keep them in them in the loop the next time you buy something with a contactless tap.  Those tech-savvy little munchkins might be more interested than you think. 

Apple Pay:  

Once users set up their Apple Pay account in the Wallet App, they can seamlessly make safe, secure purchases both in stores and online with their Apple devices.  Buy a slice of pizza with our watch? Oh yes, we can.  With contactless transfer of money, Apple Pay is also a germ-free way to pay in an age of Clorox.  Additionally, Apple Pay allows users to transfer money to both friends and family easily through messages.  How do the BT Moms use Apple Pay? One of us bought a new set of candy-colored cookware in the school parking lot this week (that targeted Insta ad finally wore us down 🤦‍♀️).  If that’s not 2021, we don’t know what is.  

Venmo:  

Venmo, by contrast, is more of a peer-to-peer payment platform.  It allows users to easily pay or request payments from friends and family, as well as pay some businesses for their services or wares.  No wallet, cash or credit card is necessary once you’ve signed up and linked your bank account.  As another contactless option, Venmo was up nearly 60% at 2020 year-end with over 52 million active users.  The BT Moms most frequently use Venmo to share costs for group birthday gifts and to pay babysitters.  With a little luck, we’ll all be splitting the tab via Venmo on a Mom’s Night Out one day soon. 🙏

PayPal:  

PayPal (which incidentally owns Venmo) is yet another popular way to transfer money digitally.  PayPal allows users to shop online, share expenses with friends or get paid by customers, all while keeping financial information private and protected.  As the long-standing payment method for Ebay, PayPal is one of older and more trusted digital payment methods for individuals and retailers alike.  It has expanded beyond digital payments and now offers services that almost make PayPal similar to a traditional bank.  With over 350 million users and 116% growth in 2020, we clearly aren’t the only ones utilizing this digital payment behemoth.  Because our information is already stored securely in the PayPal platform, the BT Moms mostly use it for our online shopping needs.  Most recent PayPal purchase?  A pair of hot pink flip flops for a vacation we probably won’t take.  It’s cold, dark and snowy in New York these days, but one can dare to dream.  

Pro tip: make sure your phone is password protected before your kids Apple Pay their way to a new slime kit.