If youve downloaded iOS 10 for your iPhone, you may have noticed that Apple Pay is a more prominent component of the Wallet and that Apple Pay is just one of the many alternative payment systems being used in big stores, tiny craft shops, and even among friends today. Some of these, like PayPal, have been around for a long time, while many are part of a new, increasingly digital economy.
Unfortunately, though many are eager to use these new apps and simplify their financial exchanges, not all of these mobile alternatives are ready for the big time. In fact, some may be putting you and your customers at financial risk. If youre a business owner, its important to know which of these apps you can trust and which should be tossed back into the digital sea.
Business Ready, Customer Safe
For companies that are ready to expand beyond PayPal and Apple Pay, there are definitely a number of apps that are business-ready and wont compromise customer data, including 2CheckOut, a simple e-commerce app open to both businesses and individuals and Payline Data, an e-commerce provider that centers transparency in its business.
Payline Data offers two different tiers, much like the send money to family and friends versus pay for goods and services settings found in PayPal. In Payline Datas case, you can opt for simple or professional processing, depending on your needs. Small businesses may also choose to begin with simple processing and graduate to professional processing as their business grows.
Coded For Danger
For every trustworthy payment app, of course, theres at least one that poses a risk to user data and privacy, leaving them open to scams or identity theft. Luckily, these apps are popping up at a time when consumer protections are stronger than ever, in large part because of the actions of the Consumer Finance Protections Bureau (CFPB).
The CFPB was created in response to the subprime housing crisis, but its responsibilities reach well beyond the world of real estate. Rather, the CFPB enforces financial data privacy and collects complaints about companies with manipulative or deceptive financial practices.
When choosing a new e-commerce app, research the company first and take a look at CFPB reports to find out what users have to say about different apps. Venmo, for example, a very popular app used to transfer money between friends, was recently investigated by the Federal Trade Commission (FTC), which regularly partners with the CFPB. The terms of the investigation focused on deceptive financial practices, an area very much within the purview of the latter group.
Another popular app, Dwolla has also faced scrutiny by the CFPB and was subject to the Bureaus first data security fine. Specifically, Dwolla was held responsible for false representation regarding their security standards and encryption practices. The company was fined $100,000, in addition to being required to amend their security practices.
Choosing an appropriate e-commerce service for your business is an important process and one that can have significant ramifications for your company and your customers. Dont assume that all apps are equal its often the hidden features (or lack thereof) that make the differences.
