In: Economics
“Peer-to-Peer (P2P) Payment Services”
After reading the article, answer each of the following questions:
Peer-to-peer payment services provide the capability to make digital payments through
writing a check to the person you owe money to.
taking out cash at an ATM to pay someone.
using a smartphone app that allows users to transfer money to others.
purchasing a money order and sending it.
Bank-centric payment apps are different from third-party apps because
third-party apps are offered through banking apps, and bank-centric apps are not.
bank-centric apps are added features within bank apps.
bank-centric apps only allow transfers within the same bank.
third-party apps are less reliable then bank-centric apps.
Monica needs to pay the rent to her landlord, Camilo. Which of the following methods of payment would have
the lowest transaction costs for Monica?
Using a P2P payment app to transfer the money in real-time to Camilo
Driving to the ATM, taking out the cash, and meeting Camilo to pay him
Writing a check, filling an envelope, and taking it to the mailbox to send to Camilo
Purchasing a money order at her bank and then mailing it to Camilo
4. Pixel used her bank’s P2P payment app to pay Lumen back from her checking account. Once Pixel transferred the money, Lumen had instant access to the funds. This scenario best describes
high transaction costs.
a real-time payment.
a debit card transaction.
a credit card payment.
5. Digital wallets within P2P apps are known as
ATMs.
bank-centric.
debit cards.
stored value accounts.
6. Most P2P apps require the person sending the money to provide the bank account number of the person to
whom they are sending money.
a. True
b. False
7. If businesses want to accept payment from a P2P app, they may pay a fee of up to ________ percent and _____
per transaction to the company that runs the P2P app.
3.5; $0.40
2.8; $0.30
4.5; $0.25
2.9; $0.30
Which generation is using P2P payment apps more than any other generation?
Millennials
Generation Z
Generation Y
Baby Boomers
Which of the following best describes transaction costs?
The costs associated with selling a service such as cutting someone’s hair
The costs associated with buying and selling a good, service, or financial asset
The costs associated with accepting only debit or credit card payments
The costs associated only with writing a check to pay someone
When using P2P apps, one of the drawbacks is that
the app keeps track of how much money you have transferred.
the app makes it easy to connect to your personal bank account.
the app provides a way to make real-time payments.
you may mistakenly send money to the wrong person; it may not be refunded.
1. Ans. Peer -to- Peer payment services provide the capability to make digital payments through C. using a smartphone app that allows users to transfer money to others. Peer-to-peer (P2P) payment services allow users to link their bank accounts to an app that facilitates the digital transfer of money between two people, even if they each have accounts at different banks.
2. Ans. Bank-centric payment apps are different from third party apps because, B. bank-centric apps are added features within bank apps.
3. Ans. A. Using a P2P payment app to transfer the money in real time to Camilo , this method of payment would have the lowest transaction cost for Monica.
4. Ans.Pixel used her bank’s P2P payment app to pay Lumen back from her checking account. Once Pixel transferred the money, Lumen had instant access to the funds. This scenario best describes B. real time payment.
5. Ans. Digital wallets within P2P apps are known as stored value accounts.
6. Ans. b. False.
After completion of initial setup, users do not need each other’s account information to make or receive real-time payment. Instead, the monetary transaction can be done through using the email or phone number associated with that account.
7. Ans. 2.9; $0.30
If businesses want to accept payment from a P2P app, they may pay a fee of up to 2.9 percent and $0.30 per transaction to the company that runs the P2P app.
8. Ans. Millennials generation is using P2P payment apps more than any other generation.
9. Ans. The costs associated with buying and selling a good, service or financial asset best describes transaction costs.
10. Ans. When using P2P apps, one of the drawbacks is that you may mistakenly send money to the wrong person ; it may not be refunded.
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