VENMO
Venmo was created by University of Pennsylvania graduates Andrew Kortina and Iqram Magdon-Ismal.
You can create a Venmo account by registering your bank account or credit card. Then, text Venmo the amount of the payment and the recipient's name or phone number.
For example, text: "Pay $33 to Jenny for May electric bill" or "Pay $10 to 215-555-5555 for dinner last night." The recipient then gets an email and goes online to accept the payment by providing an account where the funds can be deposited. Venmo then transfers the money.
Venmo is free for users and merchants, and local businesses are catching on.
Worried about security? Venmo lets users import a photo from Facebook so businesses can verify a customer's identity.
XIPWIRE
XipWire offers a similar payment service. With Xipwire, text a short code to exchange money: 56624.
"Whenever you make any kind of financial transaction you have to authenticate that payment with a four digit pin just like you would your debit card," said Sharif Alexander of XipWire.
You can send money to friends and merchants. Dozens of local businesses have signed on to this service too, including Tierra Mia Organic Nail Spa.
"It really enables us to speed up the transaction process," said Justin Mitchell of Tierra Mia Organic Nail Spa.
XipWire texts and emails you when a transaction is made. If you lose your phone, you can lock your account online.
XipWire is free right now but, starting next year, it will cost users 10 cents per transaction. Verizon Wireless customers can't initiate a XipWire payment on their cell phones yet, but they can receive payment notifications.
Right now Xipwire has a special promotion with Capogiro, the gelato chain. Text "Go Giro" to the Xipwire code - 56624 - and you'll get a free scoop.
As for Venmo? You have to be invited to be a user and right now Action News viewers have an exclusive invitation. Just CLICK HERE.
RELATED LINK: Venmo website
RELATED LINK: XipWire website
