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Most Consumers Want P2P Payments from Their Bank, Survey Finds

A new survey from Fiserv showed growing use cases and interest among consumers for P2P payments provided by banks.



A significant majority of consumers (79%) say they are interested in using a digital P2P payments service provided by their bank, according to a new survey released this week by Fiserv, the provider of PopMoney.

Most consumers are also already making at least one digital payment per month, the survey of 2500 consumers, titled “How Americans Pay Each Other,” found. Most of the respondents (60%) said that they make a payment at least once a month on their laptop or desktop, and 30% of the respondents also said that they make at least one payment a month via their mobile phone.

The survey found that 88% of the respondents had sent money to another person in the past year. The majority of those respondents (56%) said they used cash, with 41% saying they used checks for such payments, and 31% using a P2P payments service like PayPal.

[See Related: P2P Payments: Why Banks Need To Dive In Now]

The survey showed a growing use case for P2P payments in sharing household bills among roommates and partners. Nearly half of the respondents (46%) said that one person in their household pays the bills and then other household members pay them back. Interestingly, such an arrangement was not just for those living with roommates, but many married couples, particularly younger couples, also had one person pay the bills and the other pay them back later. Among married couples between the ages of 18-24, 64% used this arrangement, and 57% of married couples between the ages of 25-34 did so as well.

The survey also looked at the demographics between how people of different ages and genders pay each other. The majority of the respondents who had children (63%) said they had sent money to their children in the past year. But many of the younger Gen Y (56%) and Gen X (35%) said they had also given money to their parents in the past year. The survey found that men were more likely to have sent money to friends, spouses, co-workers or roommates, while women were more likely to have sent money to their children.

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

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Jonathan_Camhi
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Jonathan_Camhi,
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10/21/2013 | 6:16:25 PM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
From what I've heard the thinking around P2P payments is that it will be enticing to certain customer segments, like people who send money to family often when they have a kid in college. But I think there's general acknowledgement that P2P won't be for everyone.
Byurcan
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Byurcan,
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10/21/2013 | 1:08:25 PM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
Even if consumers haven't adopted p2p payments by and large, it would be interesting to see the use among small businesses. For example, my wife's company pays contractors and freelancers with popmoney, as opposed to cutting multiple checks per week.
Byurcan
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Byurcan,
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10/21/2013 | 1:06:49 PM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
Yes, it's the same as mobile wallets, they sound cool, have a lot of hype, but how many people have ditched their cards for them? I've yet to see anyone using one to make a purchase.
Greg MacSweeney
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Greg MacSweeney,
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10/21/2013 | 10:49:48 AM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
Many people are "interested" in using P2P payments, but very few are actually doing it. I make 100% of my regular payments electronically (credit cards, utilities, mortgage, insurance payments), but I still haven't successfully completed a P2P payment (although i have tried). I am "interested" in P2P payments, though :)
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
10/18/2013 | 4:09:56 PM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
That's very true, and banks are starting to advertise their P2P capabilities as well. That Citi PopMoney commercial is on all the time now. And many Wells, Chase and BofA customers that I know make somewhat regular use of ClearXchange. I think P2P could quickly grow to the point where it becomes an expected service from banks, like mobile check deposit has.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
10/18/2013 | 4:07:01 PM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
I think the interesting question here isn't as much if people are interested in P2P payments from their bank, but whether or not a bank-owned P2P payments service can draw customers away from PayPal, which is very well established in this space.
Byurcan
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Byurcan,
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10/18/2013 | 1:51:08 AM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
Despite the many new tech-savvy players on the scene, banks still by and large retain a trust factor with consumers; people generally trust banks to take care of their money. This is an inherent advantage banks have they must not squander.
KBurger
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KBurger,
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10/17/2013 | 4:32:37 PM
re: Most Consumers Want P2P Payments from Their Bank, Survey Finds
This makes sense, though I question how objective the operator of PopMoney would be about P2P trends. Still, this does seem to align with the broader trend of consumerization of IT and people wanting to take more control over their financial interactions. And at least they are still looking to banks, as opposed to a non-bank provider, as the enabler of this.
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