GroupMe Updates App With Ability to Split Costs and Collect Payments from Friends

I can't wait to see what other apps Macrumors is going to report on!

Split their example "Birthday Cake" 4 ways. The three people chipping in have to pay $45/4 * 1.04 + $0.99 = $11.25 * 1.04 + $0.99 = $12.69.

GroupMe will be collecting ($12.69 - $11.25) * 3 = $4.32 from this single example.

Each person will be spending 13% extra for the convenience of not having to remember to bring the right amount of money the next time they see whoever they owe.

I suppose as the person who others normally have to pay back, I would appreciate this...

Without trying the app or completely reading the article, here's what I think a typical conversation is going to look like:

Person 1: "hey guys, lets split the cost of gas. what's $60.06 / 3? gee, math is too hard, hey I know, how about let's all download this app."
(3 minutes later)
Person 1: "k guys, I'm inviting you to this group, did you accept?"

Person 2: "nah, sec, hold on...k downloaded. Nah I didn't get your invitation."

Person 1: "hold on, let me invite you again"

Person 2: "ah, got it. k I accepted"

Person 1: "k so...how much was it again? Oh yeah, $60.06. So let me put that in and we'll split it"

Person 2: "got it, hold on sec, let me input my credit card information"

Person 1: "yeah me too, sec..."

(3 minutes later)

Person 2: "got it, k paying now...WTF $0.99 cents + 4% charge? screw that I'll just pay you $20"

4% + 99 cents?
Paypal is cheaper.

arn said:

Except, lots of people use the app already for group messaging (it's primary purpose).

That's like saying that if Apple were to come up with a payment option for their iPhone, this is how I see it going.

Store #1: That will be $49.95, you can pay by iPhone, or Credit Card or Cash?
Customer: iPhone? Ok, hang on.
...drives to Verizon...
Customer: I'd like to sign up for an iPhone
...30 minutes later....
...customer drives back to Store #1....
Customer: Here, I have an iPhone, can I pay?
Store #1: Who are you?

arn

(that said, the fees are high and would probably stop me from using it for that purpose)

Click to expand...

true. However, even if everyone had groupme, there's still the painful process of entering billing information the first time round which people wouldn't want to do.

Yuck. 4% fee...?

Venmo.

It's free. P2P payments. You can even pay a phone number and they can pick up the money later.

The fee is way too high. Paypal should just add this feature to their app.

Too much. PayPal thanks!

Silver lining is, imagine doing this with In App purchase!

liavman said:

Silver lining is, imagine doing this with In App purchase!

Click to expand...

Imagine paying a 34% fee...

You know what's cheaper?

Having the restaurant pay for it by running separate checks.

Cost of doing business.

This is ridiculous. I thought Square was too expensive. They only charge 2.75%. These guys want to charge $.99 + 4%. That's nuts!

4% + 0.99 cents? I don't know about most of you but that's just a bit too much. I'd rather just do the math and round up or down to whole dollar...

Too expensive for small debts

Why not just use an app like SpotMe https://itunes.apple.com/us/app/spotme-payments/id443369076?mt=8 and to track the split bills and then settle in person? No need to pay a fee.

mattbisme said:

4% + 99 cents?
Paypal is cheaper.

Click to expand...

Every other payment service is cheaper. I assume they are using another service and decided they needed their own margin on top. The fees are ludicrous.

This could be amazingly convenient, but the fixed fee is a dealbreaker. I split bills tons of times with friends in the past but usually payed $5-20. These small amounts make an entire $1 completely unjustifiable. i'd like to know how much of the fee is imposed on them and how much they think they deserve for 'convenience'