Results of a survey conducted by Bank of America regarding the use of P2P solutions was released publically and presented in an article in Finextra. This come just after Bank of America’s integration efforts with Zelle and in advanced of planned promotions later this year. Some interesting results came out of the survey:
Among millennials, P2P payments have become the social norm, used by 62%. And other age groups are catching up, with 45% of non-users polled saying that they plan to jump on the bandwagon within the next year, shows the survey of 1005 adults with banking relationships and smartphones.
Of those that use P2P payment services, 68% cite convenience and time savings as the reason, while 48% mention peer influence. Only 16% say that they use the new digital options because they do not want to use cash and cheques.
The growing ubiquity of services is also a factor, with 30% saying that they have started using P2P payments because of new offerings from banks. B of A recently revamped its app with aspects of Zelle, the platform it owns with other banks which processed 170 million payments last year boasting an aggregate transaction volume of $55 billion, more than double that of PayPal-owned rival Venmo.
The surprising fact is the relative low percentage, 16%, who say that they will use a P2P solution because cash and checks are less preferred. Apparently, cash and checks aren’t all that bad. The 48% that say that peer influence created the use of a P2P service may have some financial institutions thinking about the potential need to include a social component to drive a viral effect to their solution as Venmo has to great effect.
What should not be a surprise is the level of bank – based P2P activity. Banks have been offering P2P solutions for nearly a decade now with ever increasing adoption
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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