Best Instant Money App Features

A car breakdown, an unexpected medical bill, and a broken appliance. We all know how these frustrating life events are, and they always seem to crop up at the worst possible time. When life throws us unwelcome curveballs, many of us don’t have cash on hand to pay our way out of the crisis.

Many Americans are finding themselves in such situations more and more frequently. Consumer prices rose 8.5 percent in July. With the price of basic necessities like gas, shelter, and food continuing to rise, consumers are feeling the pinch, and two-thirds of Americans were living paycheck to paycheck in June.

When money is tight, all too often, the only option is pulling out the credit card, taking out personal loans, or approaching a payday loan provider. Unfortunately, these options come with consequences that can linger for months, even years. They include massive interest rates, overdraft fees, strict repayment terms, and a barren bank account.

Luckily, thanks to advances in technology and the innovation of alternative service providers, you now have other options the next time you find yourself in a tight spot. And even better, these alternatives are literally at your fingertips – with just a few clicks on your smartphone.

But before we get into the good stuff, let’s spend a moment understanding the money app marketplace and what to look at when considering this product.

What Are Instant Cash Apps?

Instant cash apps are simply what they sound like – apps that you can load onto your smartphone or device to access, send, and receive money. The specifics vary from app to app, but you can usually add funds to your app account using a debit card linked to your existing bank account. Some providers also provide their own debit or prepaid card as an option for loading accessible earned wages from your employer.

Typically, once you’ve installed the app, you create a free account. You’ll generally need to create a username and password or provide your email address and phone number. Once you’re all set up, you can start using the service to instantly send and receive money or make payments for goods and services. The way the sending and receiving of payment works will depend on the app you’re using.

The trend towards “instant and digital” has been accelerating for years. Today, online shopping is a preferred form of purchasing goods and services. Equally, the way consumers interact with their money is often entirely virtual. Even before the pandemic hit and strict, extended lockdowns were implemented, people weren’t visiting banks as often as they used to. Card payments are favored over cash because they’re safer.

Why Usage of Instant Money Apps is Showing Growth

The market and use cases for instant payment apps are growing exponentially in every sector, and for good reasons. Let’s take a moment to explore why this payment model is growing in popularity. The first, most obvious reasons are speed and convenience. But beyond that:

They Help You Manage Your Cash More Effectively

Instant money apps can be a useful way to manage your cash and avoid overspending (which is easy to do when you have a credit card or overdraft facility).

You Get Your Money Instantly

Checks can take from three to five business days to clear, which can be difficult for people whose cash flow is limited. With instant money apps, you can send money directly and immediately to another person. You don’t have to provide one another with sensitive information like credit card numbers or bank account details. Moreover, you don’t need to wait on a financial institution to process the transfer.

It’s Safe

Finally, reputable apps will ensure that all data in transit is encrypted, and they’ll be PCI-DSS level 1 certified. Many also offer fraud protection for unauthorized charges.

Do Any Apps Really Pay Out?

Yes. Most instant cash apps will pay out very quickly and won’t require a pre-approval of your credit score, nor will they charge you any interest.

That being said, there are drawbacks with some products. For example, some have threshold payment limits, and others come with steep membership fees.

How Instant Money Apps Differ from Cash Advance Apps and Payday Loans

Let’s understand how instant money apps differ from cash advance apps and payday loans:

Cash Advance Apps

With cash advance apps, you’re borrowing money you haven’t yet earned. Though cash advance apps can help to cover emergency expenses, there are also some risks to consider that come with using them.

Cash advances can lead to you falling into a debt trap if you aren’t able to pay back the loan with your next paycheck. Cash advance apps could also lead to you indulging in bad spending habits since the advanced money doesn’t necessarily need to be spent only on essential items or in the event of an emergency.

Some cash advance apps come with fees, even if those fees are lower than what payday lenders charge. Signing up for a cash advance app also requires that you share personal data, potentially putting it at risk. An analysis by PaymentsJournal found that 70% of such apps fail to fully protect users’ confidential information.

Payday Loans

If you need quick cash, a payday loan can seem like a tempting offer. You just walk into a store, fill out a few forms, and walk out with fast cash. But you’re not just signing up to get a little money; you’re also signing up to pay a high-interest loan, one that’s often called “predatory” because of how much it costs. Some payday loan lenders may charge over 600% in interest!

Unless payday loans will prevent you from entering a dire living situation, you’re better off avoiding them. Aside from the exorbitant interest you’re charged, if you fail to pay back what you owe on time, your credit score could be negatively affected, something that can lead to other problems down the line.

When you apply for a credit card, mortgage, car loan, or even a new cell phone account, there’s a good chance your credit score will play an essential role in the signup process. Credit scores and credit reports are vital tools lenders and other companies use to assess how likely you are to repay a loan as agreed. This impacts your approval odds and interest rates once approved.

Are Instant Money Apps Safe?

If you’re considering using an instant money app, be mindful that there are many scammers out there – do your homework and research who the best and most reputable app providers are in the marketplace. You don’t want to find yourself falling into the clutches of a predatory payday loan provider that’s simply masquerading in another dress! Here are a few things to watch out for:

• Reputable money app lenders will be forthcoming about the terms and conditions of their products and the fees that you’ll be charged.
• They should not try to put undue pressure on you, like attaching some kind of urgency or a deadline to your decision on whether to go with their product.
• Make sure they provide accurate physical office addresses and contact information.

It’s also a good idea to look at the security features of different apps. The best providers employ the latest encryption and fraud protection technology to protect their users. For example, the app will send you a one-time-use login code for logging into your account. Many also offer optional settings to enable additional security measures. For instance, if you enable a security lock, every payment requires your passcode.

When using your instant cash app, carefully ensure that you enter the recipients’ information properly. If you make a typo, you could end up sending money to the wrong party, in which case you may have no way to retrieve it.

Some providers will allow you to reverse an incorrect payment within a specified timeframe. But if that avenue proves fruitless, you’ll be dependent on the goodwill of the recipient to do the right thing and make a refund.

How an Instant Work App Helps You and Your Employer

From employers’ perspective, offering employees access to a reputable instant cash app to access wages that they’ve earned but not yet collected is a powerful drawcard in a competitive marketplace. Not only does it allow them to put their employees firmly in control of their own finances, but it also helps with employee retention and engagement.

As an employee, having access to your money instantly once you’ve earned it is not only convenient, but it also helps when unexpected costs arise and money is short.

Instead of having to wait for your next payday for money to land in your checking account, take out personal loans, or borrow money from family or friends, you can pay your own way, using your own money.

Why Payactiv?

Payactiv’s solution is based on the Earned Wage Access model. EWA platforms aim to provide a meaningful solution to payday loans and overdrafts while ultimately aiding in the reduction of people’s financial stress.

With Payactiv’s solution, you can immediately access money for hours already worked, transfer it to your bank account, or pick it up in cash at Walmart. You can even use your wages for an Uber or daily necessities from Amazon.

Payactiv has an optional prepaid card available to users, so you can access your money quickly and easily – all with the added bonus of fraud protection.

There’s no charge for on-demand pay if you set up direct deposit to the card. Without direct deposit, you pay $1 for one day of use of all services.

In addition to accessing your earned wages before payday, Payactiv offers financial advice and counseling.

As a Certified B-Corp, Payactiv meets the highest standards of social and environmental performance, transparency, and accountability, helping you thrive today and plan for tomorrow. Because our economy—and our world—flourish only when the people who work to create it have an honest chance to prosper.

Here’s a more detailed overview of the features and benefits of the Payactiv solution:

Spend Safely with Smart Guidance

Our smart budgeting technology does the work, so you stay on track with spending and saving goals.

• Track spending habits at a glance
• Know what’s safe to spend
• Be alerted of low balance
• Auto transfer from earned wages

Grow your Savings for Rainy Days and Big Dreams

• Automated insights on what’s possible to save
• See your savings grow with each paycheck
• Get financial advice for near- and long-term planning
• 1-1 phone service with trained financial coaches

Get Paid Early

Get fast access to your money when you deposit to your Payactiv Visa® Card*, use-everywhere Visa® debit cards are accepted, pay bills directly from the app, and locate surcharge-free withdrawals at 37,000 in-network MoneyPass® ATMs. With direct deposit:

• Get paid up to 2 days early¹
• Get Government payments up  to 4 days early
• Access wages earned anytime

Easily Send Money to a Friend

You can send money between you and other Payactiv Visa Card cardholders.

• Add a phone number
• Receive and send funds
• Money moves in seconds

Peace of Mind – Included

• FDIC insured through CBKC, member of FDIC
• Protected by Visa’s Zero Liability protection²
• Lock lost or stolen cards
• 24/7/365 bilingual support
• Contactless payments (Tap-to-Pay and Apple Pay or Google Pay, making it a simpler and more secure way to pay than using your physical card.)

No Hidden Fees*

• No activation fees
• No monthly maintenance fees or inactivity fees
• No minimum balance requirements

Final Words

As inflation continues to skyrocket, consumers are struggling to pay their bills. While cash advance apps and payday loans provide a quick and easy way to get food on the table or fill up your tank with gas, they can be incredibly dangerous. They can launch you into debt and even ruin your credit score.

If you’re struggling financially and considering one of these options, you’d be wise to explore other solutions, such as an instant money app, as an alternative.

Learn more about how Payactiv can help you.