Historically, cash and cheques have dominated as the primary means of settlement for person-to-person (P2P) transactions, but that has the potential to change rapidly according to new research released by Nacha and eCom Advisors in partnership with FIS and PayPal.
The February 2010 survey, completed by 1,180 active online banking consumers in the US, was designed to test consumer reaction to two new concepts. The first concept was using a P2P payment service offered within the online bill-payment applications of financial institutions. Nearly half (48%) of active online banking consumers are likely to use such a service, according to the research.
The research also investigated consumer interest in several different scenarios for P2P payments offered by financial institutions. Results concluded that:
- Thirty-three percent of consumers are likely to use P2P payments to send money to a son or daughter at college.
- Thirty-one percent are likely use P2P to send money out of the country to a family member, friend, or associate.
- Twenty-five percent are likely to use P2P to split the cost of a gift with co-workers, friends, or family members.
The second concept tested in the research was an ePayment Portal, defined as a service provided by a financial institution allowing consumers to transfer money, pay bills, conduct P2P payments, and track all their money movement from a single place online. Nearly half of consumers (49%) expressed interest in the Portal concept. Of this interested population, 70% would likely use P2P payment services within the Portal.
Another key finding is consumers who have already adopted mobile financial services likely will be the first adopters of financial institutions’ P2P payment solutions. Consumers who used their mobile phones to access their bank account or view or pay a bill within the past 30 days reported a likeliness to use the study’s P2P payment concepts at rates more than two times higher than those reported by the overall sample of active online banking consumers.
“Today’s active mobile banking consumes are clearly attracted to the notion of replacing cash and check transactions with P2P payments via their mobile devices,” said Paul McAdam, a partner at eCom Advisors. “In addition to targeting marketing communications to encourage this segment to adopt P2P, financial institutions should also integrate P2P payments with their mobile banking services.”
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