In the United States, there were about 150 billion cashless transactions in 2015; this number has since gone up. The cashless revolution is being driven by what? Credit cards undoubtedly make a significant contribution, but peer-to-peer payment apps also play a role. 63.5 million users accessed mobile, peer-to-peer payment apps in 2017. By promoting efficiency and a “digital-first” approach while sending and receiving payments, these apps are revolutionizing the transaction landscape.
Peer-to-Peer Payment Apps: What Are They?
Some P2P payment app names are probably familiar to you, like PayPal.
The incredibly well-liked Venmo is owned by both myself and it. The increasingly well-liked Zelle was developed through cooperation between several sizable institutions. Users can send money fast and conveniently using these apps. They can be used to pay for anything, from sending a roommate the next month’s rent to paying a pal for a coffee. Let me Venmo you for that,” is one of the catchphrases made famous by Venmo, which also incorporates social media into their payment system. Users can add emojis and humorous language to transactions that are made public to add a playful aspect to the payment process.
Peer-to-Peer Payment Apps: Who Uses Them?
Peer-to-peer payment apps are regularly used by almost half (46%) of smartphone owners.
According to the survey, Millennials use these apps the most (51%), but only marginally more than Generation X (48%), as is the case with most technology. According to another survey, 75% of Millennials prefer P2P payment apps to cash or checks.
Peer-to-peer payment apps are popular among millennials for a variety of reasons, including:
Millennials are more willing to incorporate technology into daily life and have higher confidence in it.
Perhaps as a result of increased debt levels and reduced job security, they are less comfortable paying other people’s bills. Due to this, Millennials might be more eager to receive immediate payment for any expenses they do cover. P2P payment apps were blamed in a recent New York Times story for what the author believed to be a growing frequency of frugal behavior among younger generations. P2P payment apps transform friendships into more transactional relationships because of how simple it is for users to inform their friends that they owe them $4.32 for a bagel. According to the author, users are less likely to adopt the mentality of “I’ll cover you this time.” But this is just my view. Nevertheless, it appears that P2P payment apps will grow in popularity as younger generations adopt them more fully into daily life.
What Role Do Peer-to-Peer Payment Apps Have in the Future?
According to April 2018 data by Business Insider Intelligence, despite only releasing as a complete app in September 2017, Zelle appears to be in a strong position to take the P2P-payment app market by storm. In 2017, the Zelle network processed $75 billion worth of transactions. Venmo, a stalwart competitor, transacted “just” $35 billion. The fact that established banks collaborated to develop Zelle and that it is already incorporated into many other online and mobile banking services gives it an advantage. For instance, customers of the Bank of America app already have Zelle installed on their devices, whereas Venmo needs to be downloaded separately. The services can also show a generational divide. While Venmo might be well-liked by college students, elder customers might view Zelle’s affiliation with well-known banks as a security advantage. The competition’s final result is still up in the air, but peer-to-peer mobile payment apps are unquestionably a big part of the future of the payments sector.