Mobile P2P Payments
Thanks to P2P payment apps, “I don’t have cash” is no longer an excuse among friends. Mobile peer-to-peer (P2P) apps reduce the friction of lending money and splitting bills.
Unlike traditional person-to-person payments, you only need the recipient’s email, phone number or username to transfer money. Using P2P payments, you can split everything from cab fare to your monthly rent with a few taps on your phone.
Considering the ubiquity of smartphones and simplicity of these payments, it’s no surprise that P2P payments have quickly gained momentum. 9.1% of Internet users reported using P2P payments on a regular basis (Figure 1). This rapid growth has created a crowded marketplace. In addition to standalone apps, banks are increasingly creating their own P2P services, and social networks have rushed to introduce the functionality into their own platforms.
As with most digital technologies, the added convenience means an “electronic” paper trail — a deterrent to some. P2P services may have access to a wealth of information about your transaction history and personal finances.
And while it only takes a few seconds to make a P2P payment, unlike cash and traditional money transfers, transactions can take a few days to reach a bank account — which may be why 58% of its biggest user group, millennials, still prefer to be paid back in cash§.