Mobile Payment app Complaints on the Rise, Report finds
The number of mobile payment app usage has surged dramatically since the onset of the pandemic.
A survey conducted in 2020 revealed that around 79% of Americans were using mobile payment apps. Digital payment apps allow money to be transferred instantly through credit cards or connected bank accounts.
The main reason so many people are gravitating towards downloading and using these apps is because they allow quick, secure, and convenient transfer of money. However, as the number of app users is increasing so is the number of mobile payment app complaints.
Some mobile payment apps are reported to be scamming users
According to a recent report from the U.S. Public Interest Research Group (PIRG), mobile payment apps and wallets such as Zello, Cash App, Venmo, and Coin base are reported to have the highest number of mobile payment app complaints in regards to privacy and app security.
Around 9,277 consumer complaints related to digital wallets, received from April 2016 till April 2021, were reviewed by the consumer financial protection bureau. These included customer service issues, scam reports, and weak privacy policies.
A survey from NerdWallet revealed that even before the pandemic, nearly five out of five U.S citizens were already using digital payment apps. The pandemic only boosted the demand for cashless payments.
The PIRG report also suggests that as compared to July 2020, the complaints registered in April 2021 were more than double, with nearly 970 cases reported.
“It’s not really clear to consumers that once they send the money, it may not ever come back,” said Ed Mierzwinski, consumer advocate at U.S. PIRG.
The companies with the most digital wallet complaints were Coinbase, Square (owner of Cash App), and PayPal (owner of Venmo). Other than this, Bank of America, Chase, and PNV Bank were also named in the report.