Overview

Cash and checks are two of the last remaining categories of payments left to be digitized. They are often the payment types of choice to settle transactions between individuals. The proliferation of Internet-connected devices and simple applications makes it possible for an individual to transfer funds to another individual or microbusiness using only the recipient’s email address or cell phone number via person-to-person (P2P) payment. Unlike other new payment types or payment form factors, P2P can achieve scale rapidly because all the necessary market components are in place, including motivated consumers, existing infrastructure, and low to no-cost price points to encourage adoption.

Mercator Advisory Group’s research report, The Opportunity of Person to Person Payments, explores the existing products and product providers in the P2P marketplace, describes how they operate, and estimates the current and addressable market size.

“Third-party fintech companies are receiving most of the industry attention right now when it comes to P2P solutions. Financial institutions, however, have customers who trust them with accounts that have already been authenticated, which provides financial institutions a significant product and security advantage. This is a market that is theirs to lose,” comments Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group and author of the report.

This research report has 25 pages and 12 exhibits.

Organizations mentioned in this research report include: Apple, Bank of America, Capital One, ClearXchange, Dwolla, FirstBank, FIS, Fiserv, Google, JPMorgan Chase, MasterCard, NACHA, PayPal, Shazam, Snap Chat, Square, US Bank, Venmo, Visa, and Wells Fargo.

Highlights of this research report include:

  • Step-by-step descriptions of the process of account set-up and initial transaction for the sender, the recipient, and the provider of the P2P service 

  • Review of how transactions are initiated and settled 

  • An overview of the categories of market providers with examples

  • Profiles of example P2P providers in each category

  • Estimates of the current market volumes and the addressable market

  • Discussion of the financial institution vs. fintech battle for the P2P consumer

Learn More About This Report & Javelin

Related content

November 07, 2024
2025 Debit Payment Trends

The world of debit payments is a dynamic one. Even as debit cards remain durable and essential modes of payment, trends are coming to the fore that promise to create better consume...

October 21, 2024
Walmart Pay-by-Bank: How the World’s Largest Retailer Could Transform Real-time A2A Payments

Walmart’s announcement that it will offer shoppers the option to check out with instant pay-by-bank payments beginning in 2025 is a major development for real-time payments, pay-by...

September 13, 2024
Three Steps to Improve the Bill Pay Function

Biller direct payments are preferred by consumers over payments initiated through bank bill pay platforms. Closing the gap and engaging more customers will require financial instit...

Make informed decisions in a digital financial world

Let's Connect