Peer-to-peer (P2P) payments have become a popular method for individuals to transfer money quickly and easily, often in real-time. These transactions are typically facilitated through digital platforms like mobile apps, which offer various payment methods to fund them. From bank transfers and debit cards to digital wallets and cryptocurrency, the ways users can fund P2P payments are expanding.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Room for One More? Global Real-Time Pay-by-Bank Lessons for the U.S.
Top 4 Payment Methods Used to Fund P2P Payments
- Debit Cards – 46%
- Checking account(s) – 44%
- Credit card(s) – 36%
- Prepaid card(s) – 10%
Source: Javelin Strategy & Research: North American PaymentsInsights, December 2023
About Report
Pay-by-bank solutions are known by various names, including bank transfer, direct debit, and account-to-account payments. In countries like Brazil, India, and Thailand, where real-time, interoperable bank transfers are common, these payment methods have gained widespread popularity due to their ease of use and lower costs for merchants. However, in markets like the United States, where payment cards are more dominant, adoption has been slower.
This Javelin Strategy & Research report examines the rise of real-time pay-by-bank systems across different countries, the key growth opportunities for these payments, and the challenges and potential for expansion in the U.S. market.
