PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

P2P Becoming Mainstream

By Edward O'Brien
April 29, 2014
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on LinkedIn
supply chain finance

Person-to-person payments, which started with cash payments, then moved to Western Union to enable long-distance money transfers, finally evolved in the last decade to the introduction of digital payments/money transfers via PayPal and an array of nonbank competitors. This latest evolution has become a concern among financial institutions (FIs) and has caused them to begin to offer their own versions of P2P. Unfortunately, bank P2P innovation has lagged the development of P2P from nonfinancial institutions.

The most exciting new development in this area among FIs is clearXchange, the first bank-owned P2P backbone. The network is a first step in enabling the banking industry to take back ownership of P2P. But the front-end, customer-facing applications are still owned by individual banks, and we have not seen the FIs leading the innovation of P2P services. That honor belongs to companies such as PayPal, Venmo (also owned by PayPal), Cash (owned by Square), Google Wallet, and an array of other smaller start-ups.

Note that PayPal is the granddaddy of digital P2P and Google Wallet has the reach of millions of Gmail users today. For more information on the P2P market today, see Mercator Advisory Group’s recent Research Note titled P2P Payments: Financial Institution vs. Third-Party Digital Solutions.

Mercator Advisory Group recently completed a study of the top 40 bank-holding companies in the United States and found that three-quarters of them are offering some form of P2P to the market. Of the 31 FIs offering P2P, the most frequently occurring service is Popmoney (owned by Fiserv), followed by ClearXchange, Mfoundry/PayNet (owned by FIS), and an array of private-label and one-off P2P solutions.

This Mercator Advisory Group Perspective is an extract taken from our Mercator Advisory Group’s members only library, which provides additional analysis and guidance to assist our members in uncovering new market opportunities and optimizing current strategic initiatives for maximum revenue generation and cost containment. See the full blog library of public and private blogs here

To gain full access to Mercator Advisory Group’s blogs, research, primary data (CustomerMoitor Survey Series), advisory and consulting services or to learn more about becoming a member of Mercator Advisory Group email us at [email protected] or call us at (781) 419-1709.

0
SHARES
0
VIEWS
Share on LinkedIn
Tags: Banking Channels

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    bank chatbot

    How Banks Can Nail the Handoff from Chatbots to Human Agents

    October 15, 2026
    diagonal payments solutions

    The Next Evolution in Payments: Diagonal Thinking

    October 14, 2026
    Mikko Kahkonen

    Making Physical Cards Matter in a Digital World 

    October 13, 2026
    debit loyalty

    Building Loyalty Via Debit Means Maximizing Rewards Potential

    October 12, 2026
    synthetic identity fraud

    Synthetic Identity Fraud Is Surging—and Often Goes Unnoticed

    October 9, 2026
    Gift cards

    Lessons from the Gift Card Forum: The Critical Shift from Breakage to Redemption

    October 8, 2026
    AI-powered fraud prevention

    In the Escalating Fraud Fight, Industry Solidarity Is Imperative

    October 7, 2026
    ownership authentication

    Ownership Authentication: Fighting Fraud Losses and First-Party Risk

    October 6, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result