With payments trends going digital, instant is the new normal. As a result, there’s a real hunger for efficient and secure P2P (peer to peer) payments. In fact, 79% of Generation Z report using P2P platforms, and eMarketer forecasts overall monthly use at 52.5% by 2022. Massive upheavals like COVID-19 have only accelerated this growth.
For financial institutions, P2P alone is unlikely to drive profits. Seeking to monetize it risks driving customers elsewhere. There are simply too many competitors and free offerings in the marketplace. However, institutions can still get ahead of the trend. Enabling free and convenient P2P payments inches your digital banking platform closer to becoming a one-stop-shop for payments needs.
Your institution should aim to implement P2P technology in a cost-efficient way that rewards the investment. If you can get the most out of your P2P solution, you will strengthen customers’ relationships with your institution and its brand. The added convenience and increased customer engagement ultimately decreases the risk of deposit loss.
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