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Last summer, just days after having dinner with friends, Jazzmin Golden was surprised to see a payment request pop up in her Venmo app.
Question: $5 to cover a bottle of wine.
“I thought it was such a small thing,” said Golden, 34, who lives in Los Angeles. “It’s important to be sensitive to your loved one’s financial situation, but I don’t know. I think it’s really weird to nickel and dime your close friends and family.”
A recent Forbes Advisor study found that the way people use peer-to-peer payment apps like Venmo, Zelle and Cash App is changing.
Consumer prices rose 6.5% in December from a year earlier, according to the Labor Department.
Study: Inflation drives more people to rely on payment apps
More and more people are splitting their expenses on payment apps. According to an online survey of 1,000 U.S. adults conducted in November by Forbes Advisor and OnePoll, nearly half (47%) of users spend money using payment apps in ways they would not normally do because of inflation. It states that it divides the
- Six out of 10 18-25 year olds surveyed said they use a payment app at least once a week to split their bills. group.
- Half of 26-41 year-olds and 53% of 18-25 year-olds say they use payment apps more often due to inflation. A majority of older respondents say they do not use payment apps frequently due to high prices.
Purchases split by users: Restaurant tabs, groceries and rent are the main purchase splits on youth payment apps.
- Among users aged 18-25, 64% use payment apps to split restaurant bills and groceries, and 47% use apps to split rent. Only 25% of users use the app to split bar tabs.
- Among users aged 26-41, 58% used the app to split restaurant bills, 51% used the app to split grocery costs, and 37% used the app to pay for gas. Use the app to split the
Prevalence of “trivial” requests: Most users (86%) say anything under $5 isn’t worth asking for.
Nevertheless, approximately 2 in 5 young adult users A quarter of users say they have been repeatedly requested to make small payments.
Venmo Tax Report:IRS delays $600 1099-K tax returns for Venmo, PayPal, CashApp, etc.
Increased usage of payment apps
Venmo comments: Paypal CEO Dan Schulman said in November that Venmo had 57 million monthly active users, an 85% increase over the past two years.
“At recent inflation levels, Venmo makes it easy for friends and family to support each other and share payments. You can shout coffee to your friends,” says Tom Hunter, a Paypal spokesperson.
Zell says: According to Melissa Lowry, chief marketing officer for Early Warning Services, Zelle is noticing that its customers are using its payment apps more often for “key moments,” like splitting bills or paying rent. Confirming. , owns and operates Zelle.
Zelle is also seeing increased use in areas such as the gig economy and essentials such as grocery splits.
What about cash apps: Cash App generated $774 million in gross profit in the third quarter, up 51% year-over-year, according to Amrita Ahuja, CFO of parent company Block. Inflows (money people put into their accounts, including peer-to-peer payments) increased 19% year-over-year to $52 billion, setting a new quarterly record.
Payment app:Venmo, Cash, and PayPal are free, but here’s what they tell your business:
Venmo Scam:How to use payment apps without being deceived
You can follow USA TODAY reporter Bailey Schultz on Twitter. @Bailey_Schultz For personal finance tips and business news every Monday through Friday, subscribe to our free Daily Money Newsletter here.
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