When was the last time you wrote a check? Can’t recall? You’re not alone. According to the market research firm, Forrester, mobile payments are predicted to reach $90 billion by the end of 2017. That’s a lot of payments on the go, to put it mildly.
With that in mind, the rise of person-to-person (P2P) mobile payment companies such as Google Wallet, Venmo, and PayPal continues to be more common in the online payment space. It’s a quick and easy way for people to settle up and companies like these are all competing at the chance to be crowned the king of mobile payment services. Owe your buddy lunch money? Time to renew a favorite subscription? Payback is just a finger tap away thanks to P2P services.
Naturally, we decided to flex our survey muscles to find out just how many mobile users out there are familiar with P2P apps, which ones they prefer, and more. We surveyed over 250 mobile consumers with SurveyMonkey Audience–a powerful online tool aimed at targeting a specific demographic–to check on the pulse of P2P.
How popular is P2P? Age makes a difference.
A whopping 84% of those ages 60+ have heard of Paypal. Well over half (61%) report having used a P2P payment within the past year. The younger demographic (ages 18-29) were split 50-50 when asked if they’d used a P2P payment service.
What are people using P2P for? E-commerce is still king.
When asked what the most common purpose of P2P payments are, only 16% said for reimbursement and 12% said to pay rent/utilities. An overwhelming 85% of respondents said they use it for gift giving and for paying online merchants on websites such as eBay. Based off our data, the idea of paying friends and family via a mobile app may not be as widespread a practice just yet. But, knowing how quickly mobile trends develop and evolve however, this could very well change.
Are paper payments really on the way out?
Will consumers rely on P2P services as their primary method of transferring money? Just over a quarter of respondents said they’re extremely likely to recommend P2P payments to others. Over half (55%) think that security is the most important feature they look for with P2P payments. Heads-up for the future–46% said they’re “very likely” and “extremely likely” to use P2P payments as the primary means of transferring money.
What does it all mean?
It might be too soon to assume Americans are going to be ditching their credit cards and checkbooks in favor of P2P methods 100% of the time when shopping or transferring money. But the data that we gathered also confirmed for us that mobile is not only simplifying and changing the way we live our daily lives, it’s also revolutionizing the way that we consume and conduct business. We look forward to seeing how P2P services continue to expand upon and enhance functionality in the future.
If you’re on the lookout for a payments integration feature for your own business, don’t forget to check out our friends over at Wufoo! As always, leave us your questions and comments below.