Popular Digital Payment Methods

There are an almost dizzying array of digital payment methods available these days. But which ones should you use, or more importantly, not use? Which ones are most widely accepted? We’ll answer these questions and more!

First, we need to establish what your options are… and there are a lot of them! This can be good and bad. Good because there are options you will likely find useful. Bad because all of those options can also be a bit overwhelming! Keeping the pros and cons straight could be the difference between a great idea and a frustrating mistake.

Apple Cash

Apple Cash is a virtual Visa debit card within Apple Wallet that allows users to send, receive, and spend money, as well as transfer funds to their bank account.

• Pros

  • Convenience: Apple Cash allows users to send and receive money easily through the iMessage app, make purchases online and in stores, and manage their funds within the Apple Wallet.

  • No fees: There are no fees to send, receive, or request money using Apple Cash.

• Cons

  • Primarily for Apple devices: Apple Cash does not directly work on non-Apple devices. Apple Cash is primarily designed for use on Apple devices, specifically iPhones, iPads, Apple Watches, and Macs.

  • Not universally accepted: Some stores/devices will not accept Apple Pay and Apple Cash payments or may not have “Tap to Pay” capability.

Bill Pay

Bill Pay is an integrated service that allows users to pay nearly any company or person with an email address.

• Pros

  • Convenience: Bill Pay is accessible within Online Banking and is free to use for non-expedited payments.

  • Security: No outside companies, apps, extra logins, etc. are involved when using BillPay. Everything stays on the AOCU systems you already know and trust.

• Cons

  • Potential Fees: Expedited payments can be made same day, but there may be a charge for same day service.

  • Account requirements: You must have an AOCU checking account to use BillPay

Google Pay/Wallet

Google Pay & Google Wallet work together to provide a seamless digital card experience. Google Wallet is a digital wallet. It acts as a digital repository for existing credit and debit cards to enable contactless and point of sale (POS) payments. Google Pay is the service that allows use of the stored cards to pay people and vendors.

• Pros

  • Convenience: Google Pay/Wallet are pre-installed on most Android phones. It is easy to add multiple existing credit and debit cards to the wallet.

  • Versatility: Stores multiple debit and credit cards and allows for POS and contactless purchases.

• Cons

  • Primarily designed for Android devices with limited functionality on non-android devices.

  • Not universally accepted. Some stores/devices will not accept Google Pay payments or may not have “Tap to Pay” capability.

Member to Member Transfers

Member to Member transfers (M2M) allow AOCU members to directly transfer funds from their accounts directly to other AOCU member’s accounts.

• Pros

  • Security: Transaction stays on AOCU secure systems, no outside, apps or vendors to worry about.

  • Speed: Member to Member Transfers on AOCU’s system are nearly real-time, taking minutes to complete, at most.

• Cons

  • Not universal: Both parties must be AOCU members for the transfer to work.

  • Not a retail solution: M2M transfers only work to pay another account-holder, you can’t pay a business or use for POS purchases.

PayPal

PayPal is a third-party service that allows you to pay other people or retailers using your existing cards and accounts.

• Pros

  • Large user base & wide acceptance: Many people already have PayPal set up, and PayPal is well-established and accepted at many merchants worldwide.

  • Versatility: PayPal allows use of multiple debit and credit cards as well as bank accounts for payments.

• Cons

  • Fees: PayPal may charge a fee for instant transfers using their service. If you go with the free option, it may take 1-3 days to show up in your PayPal account. Fees can add up over time if you use the service often or are sending money internationally.

  • Not instant: Instant PayPal transfers can be had for an extra fee, but there are no free instant options for non-business users.

Venmo

Venmo is a service that specializes in peer-to-peer payments. Venmo connects to your bank account and allows you to move money across it’s digital channel.

• Pros

  • Easy peer-to-peer transactions: Venmo’s app makes it very easy to connect accounts and move money to another individual, often for no fee.

  • Cashless transactions: Venmo facilitates cashless transactions, which can be great for teens or those that don’t carry cash. It’s great for paying a friend or family member or splitting a bill.

• Cons

  • Fees: While the basic service is free, instant transfers have a fee.

  • Limited options: Venmo is not supported by POS systems, so it is not a replacement for your cards.

Hopefully this information helped you find the best service or combination of services for your needs. If you have any questions, chat, email or call us. We’re always happy to help!