The Future of Payments is Contactless — What’s in Store for P2P?
Person-to-person, peer-to-peer, P2P — they’re all different ways to describe online technologies that enable consumers to transfer funds from their bank account to another individual’s account via an online portal or smartphone app.
Techy definitions aside, many consumers simply define P2P as “convenience.”
Consumer demand for P2P payments was on the rise even before the pandemic. But now, it’s a daily necessity. Contactless is in, and the trend will only grow.
The number of mobile payment users across the United States surged to nearly 73 million last year, with total transaction dollars approaching $400 billion, according to online payment data provided by eMarketer.com.
What started out as a millennial-friendly payment method, P2P is now spreading among consumers of all ages. And once consumers try it, they are more likely to keep using it because they find it really meets a need in their lives. It is simple to send and receive money in a fully contactless way.
Similarly, the trust that makes it a solution for transacting between friends could help break down reluctance holding back newcomers. While P2P came to the marketplace on the shoulders of fintech, future consumer adoption will increase as their trusted financial institutions provide an alternative.
Filene Research Institute studies indicate that technology adoption and use is deeply shaped by the confidence consumers have in their financial services providers — something credit unions deliver on. Trust can also equal “sticky.” A familiar and accessible P2P app available through a credit union gives members another reason to do business with them.
Credit unions are already leaning into P2P. A recent study by the Federal Reserve Bank of Boston points out that 67% of banks surveyed offer mobile P2P payment services. Of those banks that don’t, 26% of banks planned to offer mobile P2P payments by 2021. Meanwhile, 39% of credit unions surveyed already offer P2P services, and nearly 30% of those that don’t say they will begin offering it in 2021.
For Northwest credit unions that are considering adopting a P2P solution, Strategic Link partner, Catalyst Corporate Federal Credit union, has created a path to get them started.
Working with Aptys Solutions, Catalyst Corporate can now provide a P2P solution for credit unions, known as PayMōli. It’s already being used by credit unions across the country, and it’s secure, easy to integrate into a current suite of services, and, most importantly, affordable.