Cash Cow Apps

[Trine Gritz]

Digitalwallets and payment apps are becoming increasingly popular. The Consumer Financial Protection Bureau estimates tap-to-pay transactions from digital wallets will soar by 150% between now and 2028. But which one should you rely on? Read on to learn more about some of the best digital wallets and payment apps that can change the way you pay.

Google Wallet feels a lot like Apple Wallet but for Google lovers instead. This digital wallet app has a few extra bells and whistles, such as Google Map-enabled receipt tracking, which can be handy for reimbursements, and even the ability to start your car if you drive a vehicle that offers a digital key. It also recently announced new features, including the ability to store passes like your gym membership, library and health insurance cards.

Mobile payment apps are designed to help you pay for things without using physical cash or cards. Many merchants accept payment apps in their stores and on their websites. Payment apps also allow you to send and receive money from individuals like friends and family.

Ease of spending: The downside of fast, convenient payment is that it makes it easier to spend without thinking twice. If you start using one of these apps, make sure you stay focused on budgeting.

Yes, reputable mobile wallets and digital payment apps are generally safe. Their enhanced encryption standards offer even stronger protection than you might find with physical cards, so you can feel comfortable using them. However, phones get lost and stolen, so be sure you have the ability to remotely wipe your device and/or cancel your payment information if you find yourself in this situation.

A payment app stores your payment information and allows you to make payments online, in person and often to send money to friends and family. A digital wallet offers the tools of a payment app but with more features so you can safely store documents you need, such as your health insurance card, AAA card and boarding passes.

We looked at a wide range of established and emerging digital payment services with a focus on positive customer ratings (at least a 4 out of 5 stars in the Google Play Store and/or Apple Store). Additionally, we focused on services with widespread acceptance that offered the ability to use them in as many places as possible.

Writers and editors and produce editorial content with the objective to provide accurate and unbiased information. A separate team is responsible for placing paid links and advertisements, creating a firewall between our affiliate partners and our editorial team. Our editorial team does not receive direct compensation from advertisers.

Whether you're an independent contractor filing an invoice, friends splitting the check or a family looking to divide up household expenses, electronic payments have become the norm for paying for almost anything in a fast, secure way simply by picking up your smartphone.

Ahead, CNBC Select reviewed the best five apps for sending money to friends, family and even some small businesses. (Read our methodology for more information on how we choose the best money-sending apps.)

The best money transfer apps are free to download, but costs vary depending on how you use them. Most services offer free bank transfers at a standard speed of 1 to 3 business days, but charge fees if you want to pay with a credit card and/or speed up the delivery to your bank account. International money transfers vary based on the country's exchange rates and bank fees, but you may still be able to choose a standard or economy delivery versus a more expensive express delivery. Be sure to check fees before assuming that all money transfers are free.

Money apps are arguably safer than cash since most require you to create an account with a password and two-factor login methods (such as sending verification codes) to verify your identity and the person you are sending money to.

Likewise, using a money app is safer than writing a check because it will not expose your bank account number and routing number to the person who receives it. By signing up for a money transfer app, you are, in essence, making it possible for anyone to send you a digital payment without viewing any of your secure account information, just your user ID or email address/phone number. And unlike cash, digital payments cannot be lost.

Because digital money apps allow you to send money to anyone with an account, the one caveat is that it can be easy to send money to the wrong person if you're not careful. Some apps offer additional protections, like QR-code scanning, text or email verification, unique user IDs and profile pictures to ensure the right person is on the receiving end of your payment.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every money transfer app review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best money transfer apps.

To determine the best money-sending apps, CNBC Select analyzed over a dozen options offered by the top companies in this market and narrowed down our ranking by only including apps that meet the following criteria:

In addition to these baseline requirements, some of the above apps offer additional standout features like social sharing, investing capabilities and flexible payment options (such as the ability to pay over time). We noted these features with a brief explanation, and you can learn more by visiting the respective app's website.

Cash App lets anyone quickly receive and send money from their mobile devices. In addition to mobile banking, Cash App also offers the option to purchase stocks and bitcoin through its platform. The company has even made it possible to file your taxes through its Cash App Taxes feature.

Cash App is a P2P payment app that lets individuals quickly send, receive and invest money. Block, Inc., formerly Square, Inc., launched the app, initially named Square Cash, in 2013 to compete with mobile payment apps like Venmo and PayPal.

Cash App is a financial platform, not a bank. It provides banking services and debit cards through its bank partners. The balance in your account is insured by the Federal Deposit Insurance Corporation through partner banks. Cash App provides investing services through Cash App Investing LLC, registered with the Securities and Exchange Commission as a broker-dealer and a member of the Financial Industry Regulation Authority.

Through Cash App, users can send and receive money, get a debit card and receive direct deposits. The investing feature lets users invest in stocks for as little as $1. This is done by buying a portion of a stock, called a fractional share. Consumers can also buy, sell or transfer bitcoin through the app.

To use Cash App, you must first download the mobile app, available for iOS and Android. You can also sign up for an account online. The app features several tabs for its various services, including banking, debit card, payments, investing and bitcoin.

Each Cash App user creates a unique username, called a $Cashtag. You can find individuals and businesses by searching for their $Cashtag in Cash App, then you can request or transfer funds. You can also search for individuals by name, phone number or email address, and you can choose to send funds from your Cash App balance or your linked funding source.

Any money you receive via Cash App is added to your Cash App balance by default. You can keep it there or transfer it to a linked bank account. Cash App charges a fee for instant transfers (0.50% to 1.75% of the transfer amount, with a minimum fee of $0.25), but you can also choose a standard no-fee transfer, which typically takes one to three business days to complete.

Another savings feature within Cash App is called Round Ups for Savings. This feature lets users with an activated Cash App Card round up card transactions to the nearest dollar and automatically transfer the spare change to a Cash App savings balance. You can turn this feature on or off whenever you want by navigating to your savings balance within the app. For individuals who frequently use their Cash App Card for purchases, this can be a great way to boost savings toward chosen goals without much work.

Cash App is for individuals ages 13 and older. Users age 13 to 17 require approval from a parent or guardian to access expanded Cash App features like P2P transactions, direct deposit and a Cash App Card.

Yes. Cash App users can receive a Cash App Card, which is a debit card tied to their Cash App account. Like most debit cards, the Cash App Card can be used to make purchases online and in person. You can also add your Cash App Card to digital wallets like Apple Pay or Google Pay.

Users can also use the Cash App Card at ATMs. Cash App charges a $2.50 fee per ATM transaction. In addition, the ATM owner may charge a separate fee for ATM use. For users who receive direct deposits of at least $300 each month, Cash App reimburses ATM fees, including one third-party ATM fee per 31-day period. Each receipt of qualifying direct deposits of $300 or more within a month extends your ATM fee reimbursements for an additional 31 days.

Cash App payments are instant and funds are available to use immediately in most instances. If your account activity lists a payment as pending, you may need to take action and follow the steps provided by the app to complete the transaction.

Cash App users can have their accounts verified to access higher limits. Sending limits vary depending on the amount of money Cash App approves you for. However, there is no limit to how much money you can receive through the mobile app once you are verified.

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