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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
The Decline of Checks and the Shift to P2P:
- The overall number of checks written annually fell from 22.5 billion in 2012 to 15.5 billion in 2018.
- P2P transactions have seen extraordinary growth during this same period, rising from 138 million in 2012 to 711.7 million in 2018.
- The levels of utility still differ by magnitudes, with the rate of checks written remaining much higher than P2P transactions.
- Mercator Advisory Group forecasts a 1.4% decline in the growth rate of checks through 2023.
- P2P is estimated to grow at a rate of 37.8% during the same period.
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.