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2.12BM Digital Wallets & P2P Payments

Last updated 2 months ago
24 questions
Note from the author:
Untitled Section 1

QUESTION OF THE DAY: Do consumers send more money on Venmo or spend more money on Amazon? 📷5 min

Answer the question on the first slide in the space below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions on the last slide.
1

What do you think? Do consumers send more money on Venmo or spend more money on Amazon?

1

Check the slides: Do consumers send more money on Venmo or spend more money on Amazon?

VIDEO: Credit Card vs Digital Wallet: Which is Safer? 📷7 min

Digital wallets are revolutionizing the way we handle money. Using your smartphone, you can securely store your credit or debit cards in one place and make payments with just a tap on a contactless terminal. Watch this video about digital wallets. Then, answer the questions.
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What is the primary advantage of using a physical card instead of a digital wallet?

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What are the advantages of using a digital wallet over a physical credit card?

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Imagine a scenario where someone has lost both their physical wallet and mobile phone. Based on the video's discussion about tracking and authentication, which lost item would be easier to secure against unauthorized use and why?

ARTICLE: What Is P2P Payment? 📷8 min

Just like digital wallets have streamlined our transactions with businesses, peer-to-peer payments (P2P) serve a similar purpose in our personal lives. While digital wallets are commonly used for purchasing goods and services from companies, P2P payments specialize in making it easy to send money directly to individuals. Read the article about P2P payments. Then, answer the questions.
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Why is it important to choose a P2P service that your friends and family already use?

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What are the pros of using P2P payments instead of traditional methods like cash or checks?

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What are the cons of using P2P payments instead of traditional methods like cash or checks?

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How has the rise of P2P payment systems impacted the way society handles money?

VIDEO: FinCap Friday: Payment App Users Under Attack 📷7 min

You've probably used apps like Venmo or Cash App to pay a friend back. But did you know that as these apps get more popular, scams and fraud are also on the rise? Let's dive into how you can keep your money safe while still enjoying the perks of digital payments. Watch the video about fraud attacks. Then, answer the questions.
1

What is one common scam tactic mentioned in the video?

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What precautions do you think you could take to avoid fraud when using peer-to-peer payment apps?

ACTIVITY: RESEARCH: Person-to-Person Payments 📷35 min

You've learned about digital wallets and P2P payments, including their pros, cons, and potential risks. Now, let's dive deeper. This activity will help you understand how P2P works in real life and how to evaluate different service providers. Follow the directions on the worksheet to complete this activity.

According to NerdWallet, peer-to-peer payment systems — also known as P2P payments or money transfer apps — allow users to send one another money from their mobile devices through a linked bank account or card. They make splitting bills with friends and family painless.
Complete this activity to learn more about P2P payments.
Part I: How does P2P work?
Read the first paragraph of this NerdWallet article and answer the questions that follow.
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How do you find a user to send them funds using P2P?

1

The day they go on sale, Beth forgets her money to buy season tickets to the high school basketball games. Randall has extra cash in his wallet and pays for her ticket. How is P2P useful for Beth in this scenario?

5

Part II: What companies provide P2P payment apps?
Continue reading the article about different P2P services and key details you should understand.
***Answer in your notes if present, if absent answer here and in your notes.
**Note: Google Pay is listed in the article but shut down as of June 2024.

6
Part III: Research
Use the resources in the article above to select 3 apps you want to research in more detail. Then, conduct your own research to access additional resources and fill out the table for each app. While doing your research, think about the following questions:

App 1:_______
  • Does the tool work with specific banks/accounts only?_______ Or can you use it regardless of your bank?_______
  • Who am I allowed to send money to?_______
  • Is there a fee for my transactions?_______
  • What security or anti-fraud measures does this company take to protect their users?_______
6
Part III: Research
Use the resources in the article above to select 3 apps you want to research in more detail. Then, conduct your own research to access additional resources and fill out the table for each app. While doing your research, think about the following questions:

App 2:_______
  • Does the tool work with specific banks/accounts only?_______ Or can you use it regardless of your bank?_______
  • Who am I allowed to send money to?_______
  • Is there a fee for my transactions?_______
  • What security or anti-fraud measures does this company take to protect their users?_______
6
Part III: Research
Use the resources in the article above to select 3 apps you want to research in more detail. Then, conduct your own research to access additional resources and fill out the table for each app. While doing your research, think about the following questions:

App 3:_______
  • Does the tool work with specific banks/accounts only?_______ Or can you use it regardless of your bank?_______
  • Who am I allowed to send money to?_______
  • Is there a fee for my transactions?_______
  • What security or anti-fraud measures does this company take to protect their users?_______
3
Part IV: What Do You Think?_______
Which of the apps you researched would you use?_______ Why this one?_______
1

Compare your answer to  question 4 with a partner. Which app did they choose and why?

1

What top 3 criteria would you recommend someone use to evaluate an app they are thinking of using? Explain your reasoning.

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Why do you think P2P apps have become so popular?

Exit Ticket
1

When sending a payment using a P2P payment account, which information is typically required for the transaction?
  1. Social security number
  2. Home address
  3. Email address or phone number
  4. Passport number

1

What is the primary purpose of a digital wallet?
  1. Digital wallets facilitate sharing money within a group
  2. Digital wallets focus on contactless transactions with businesses
  3. Digital wallets store cash in digital form
  4. Digital wallets provide expense tracking for making budgets

1

What precaution can individuals take to avoid falling victim to scams on P2P payment apps?
  1. Avoid using P2P apps altogether
  2. Share their account details with friends
  3. Ignore all text messages from unknown numbers
  4. Verify the authenticity of communication by contacting the bank directly