In one of my recent blog posts, I discussed the growing popularity of peer-to-peer (P2P) transactions in the U.S. Some experts predict that 2016 could be the year P2P payments go mainstream. For P2P payments to succeed with the majority of consumers, however, they must fulfill the following criteria:
- Be ubiquitous for senders and receivers: Consumers using Apple devices may need to pay consumers with Android devices or vice versa. P2P payments, therefore, must be available to both groups.
- Have minimal sign-up friction: When first signing up, potential senders must enter their names, locations, demographic information and financial information. Although this process only occurs with the first transaction, consumers are looking for a more streamlined process. P2P solutions that are simply add-ons to apps consumers already use, such as Gmail and Messenger, can even eliminate the need for a sign-up process altogether.
- Be immediate: When consumers hit the send button on a P2P payment, they expect the money to be on its way to the receiver. Ideally, that money will then be deposited in the receiver’s preferred account.
- Be available at no cost: Consumers expect payment transactions to be free. Providers of P2P payments will need to monetize outside of transaction fees.