Person-to-person payments have rapidly evolved from a niche digital service into a mainstream payment method driven by changing consumer expectations and broader adoption of mobile financial tools. Research from Mercator Advisory Group highlights how smartphone penetration, growing trust in digital financial platforms, expanded support from financial institutions, and the acceleration of contactless behaviors during the COVID-19 pandemic have all contributed to the explosive growth of P2P payments. As consumers increasingly expect instant, convenient ways to move money, P2P platforms are becoming an essential part of the broader digital payments ecosystem.
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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Examining P2P’s Remarkable Growth and Promising Future Projections
4 Factors Supporting P2P’s Dramatic Growth:
P2P has a projected growth rate of 37.8% from 2019 to 2023. There are a number of factors that are supporting P2P’s dramatic growth, including:
- Widespread access to smartphones.
- Growing comfort with digital platforms for financial transactions.
- Adoption by financial institutions and removal of fees.
- COVID-19 and the necessities of social distancing and contactless payments.
About Viewpoint
While P2P adoption began slowly, recent years have seen truly remarkable growth in both the number and volume of person-to-person transactions, and the shift towards P2P is expected to continue for the foreseeable future. This viewpoint reviews the history of the U.S. P2P market, examines the implications of P2P’s rise for other payment types, and offers projections for the future.