Peer-to-peer payment services allow the transfer of funds between two parties using their individual banking accounts or credit cards through an online or mobile app. Most apps’ terms of service prohibit commercial use, such as using them to get paid for selling goods or services. Most popular among millennials, peer-to-peer payments are used for things such as splitting rent or food costs.
Consumer Reports announced its first, test-based ratings Monday on this new way to make payments. The ratings focus on how well the services authenticate payments to prevent fraud and error, secure users’ money and protect their privacy. Other items evaluated included the quality of customer support, whether they insure deposits, and how clearly they disclose fees.
“No one should have to worry about a digital stick up, of their money or their data,” said Marta L. Tellado, president and CEO of Consumer Reports. “CR’s first-ever digital privacy and security ratings are designed to push companies to do better and help people make informed choices. In a connected world, consumers deserve apps and services they can trust – and that starts with transparency and accountability.”
To judge data privacy and security, CR applied the Digital Standard, a set of criteria designed by Consumer Reports, privacy experts, and other non-profit leaders to guide the design and development of consumer software, digital platforms and services, and Internet-connected products.
Consumer Reports plans to use the standard in future ratings of internet-connected “smart” products that collect data on users.
For more information on the ratings, visit the mobile peer-to-peer payments story on CR.org.
