Study: Monthly person-to-person payment usage is increasing
As more purchases are made online and via mobile devices, more customers are opting for person-to-person (P2P) payment services.
P2P payment services, such as PayPal, Venmo, Google Wallet, Facebook Messenger, and other options accessible online and in app, are the preferred payment method among 57% of all customers, according to “U.S. Consumers and Debit: Shift to Online May Inhibit Use,” a report from Mercator Advisory Group.
In addition to being more regularly used at some stores, the service is also becoming a preferred way to pay back family and friends, to split the bill at restaurants or events when purchasing with a group, even to pay rent or other household bills. It is especially favored across a majority (78%) of young adults aged 18-to-34. Fifty eight percent of this group uses P2P at least once a month, and 28% use it weekly or more often.
According to the study, one factor driving this service’s adoption is that U.S. consumers are making a greater share of purchases online and by mobile. While credit cards are often preferred to debit cards, there is a wider range of payment options available than ever before.
And with the rising use of online payment services, consumers may start to bypass traditional payment cards, and keep funds in their payment service rather than transfer it back to their checking account, the study reported.
“The rise in use of online and mobile commerce may be shifting the payment methods used,” said Karen Augustine, senior manager of primary data services at Mercator Advisory Group. “We continue to see slight declines in debit card use as consumers are faced with an ever increasing range of payment options which may circumvent debit transactions.”
P2P payment services, such as PayPal, Venmo, Google Wallet, Facebook Messenger, and other options accessible online and in app, are the preferred payment method among 57% of all customers, according to “U.S. Consumers and Debit: Shift to Online May Inhibit Use,” a report from Mercator Advisory Group.
In addition to being more regularly used at some stores, the service is also becoming a preferred way to pay back family and friends, to split the bill at restaurants or events when purchasing with a group, even to pay rent or other household bills. It is especially favored across a majority (78%) of young adults aged 18-to-34. Fifty eight percent of this group uses P2P at least once a month, and 28% use it weekly or more often.
According to the study, one factor driving this service’s adoption is that U.S. consumers are making a greater share of purchases online and by mobile. While credit cards are often preferred to debit cards, there is a wider range of payment options available than ever before.
And with the rising use of online payment services, consumers may start to bypass traditional payment cards, and keep funds in their payment service rather than transfer it back to their checking account, the study reported.
“The rise in use of online and mobile commerce may be shifting the payment methods used,” said Karen Augustine, senior manager of primary data services at Mercator Advisory Group. “We continue to see slight declines in debit card use as consumers are faced with an ever increasing range of payment options which may circumvent debit transactions.”