CASHING IN ON P2P PAYMENTS (Oct 2017)

Provider Competition

Pricing Strategies and Real-Time Paymemts

Impact on Other Payment Methods

Key Finding from the Report:

There is a preference among mobile phone users for using a mobile P2P payment service from their main FI over one from a third-party organization.

How can you leverage your position among consumers as a preferred mobile P2P payments provider?

Research Description and methodology

This study examines consumer experience with mobile P2P payments. Pricing issues, the importance of real-time payments, and the impact on other payment methods are also assessed.

National Internet Survey – The survey includes 1,015 Internet interviews with consumers age 18 or older.

Key Dates

October 27, 2017 – Final acceptance of client comments on the questionnaire.

October 27, 2017 – Charter fee date.

December 2017– Initial results available.

January 2018 – Project Report available.

Strategic Objectives

  • Examine the environment for mobile P2P payment services – methods currently used to make payments to other individuals, awareness of mobile P2P services overall and of specific brands, and awareness of advertising of these services.
  • Assess current mobile P2P activity – including usage overall and of specific brands, perceived value of the service, frequency of usage, pricing, largest payment made, and satisfaction.
  • Evaluate the potential for mobile P2P payment services – likelihood of adoption among nonusers, acceptable pricing arrangements, largest amount willing to send, and accounts would link.
  • Measure the usage and assess the importance of a number of features – such as immediate funds availability, ability to track activity, a liability policy for fraud or loss, and the ability to attach emoji’s or pictures to transfers.
  • Determine the advantages of mobile P2P services that can be promoted to expand and increase usage of the service. Identify concerns or disadvantages that should be addressed as potential barriers to adoption.
  • Examine provider preferences for mobile P2P services – the main provider or third-party organizations. Determine perception of which is most secure.
  • Identify consumer segments – defined by demographics, financial behavior, or attitudes – that have the most potential for adopting mobile P2P payments

Research Issues

  • There are a lot of questions emerging as providers try to understand what is happening in the P2P payments space.  Many observers believe that growth in P2P payments has stalled.  In addition, P2P marketing efforts appear to have slowed over the past few years.  At the same time, there are estimates revealing that the number of providers in the process of implementing P2P payment programs is increasing.  Key players such as PayPal, Visa, and MasterCard are active in the P2P arena. Despite all of the projections and activity, the adoption of P2P has been limited.
  • Identifying the key benefits of usage as well as the barriers to adoption among consumers will be essential.  Some believe that consumers simply do not see enough advantages to using P2P and know they can use other more familiar alternatives.  Is service availability an issue? Is real-time availability of transferred funds a key issue? It is important to understand the consumer perspective on P2P payments to develop programs that will benefit all of those involved in this space.