P2P Payments are the new cash
Updated: Jul 6
”The transactional value of peer-to-peer could reach $86 Billion in the next two-year.” (Business Insider)
It's time to speak of a new trend in the FinTech. According to the official data, P2P apps give dust to cash.
It's not a secret that digital payments are over-popular worldwide. The number of people preferring in-app transactions to cash rises day after day. No wonder! It's simple, fast, and requires no extra body movements.
According to Google Trends Statistics, the major interest in this digital payment method in 2017 belongs to Finland.
In the spring of 2017, the Finish people got an alternative to credit card payments - the country's first “first real-time multi-banking platform for mobile payments” called Siirto. The software was developed in cooperation with banks and IT service providers. The system allows you to receive and send money between different banks. All you need is a smartphone.
It is worth noting that 48% of US consumers do not prefer cash, but digital payments.
In the same 2017, a new app-based peer-to-peer payments boom appeared in the USA - a platform called Zelle. The new P2P tool for US banks operates in real-time and is developed on the principle of a person-to-person payment network. The service allows you to send money between banks almost instantly. For this, Zelle only needs the user's phone number or email. During the first 30 days from the launch of the platform in bank applications, the number of digital transactions grew by 300%.
The number of mobile banking transactions is growing every single day. Services such as Apple Pay and G Pay solve the problem of visits to the bank. The payment can be made in a matter of minutes at home or on the go.
P2P payment providers are interested in making transactions more secure and efficient. According to FinTech forecasts, the number of P2P transactions will increase ninefold. By 2021 the number will reach $336 billion, according to BI Intelligence estimation.