Person-to-Person (P2P) Payments
Javelin Strategy and Research estimates that the total volume of mobile P2P Person-to-Person (P2P) payments in the US this year will be $7 billion, and forecasts that over 60 million US households will conduct P2P payments by 2014. Financial institutions (FIs) are adjusting their plans accordingly. According to Aite, while only 17 percent of FIs currently offer mobile P2P payments, 39 percent plan to deploy mobile P2P in the next year and 26 percent have mobile P2P on their two- to three-year roadmap.
P2P payments provide numerous benefits for FIs:
- Customer Acquisition & Retention: FIs can use mobile P2P payments as a tool to acquire and retain customers. According to eCom Advisors, 20 percent of FI customers would switch to an FI that offers P2P payments, and 77 percent would prefer to make a P2P payment through their FI than with an independent payment provider.
- Revenue Generation: The direct revenue model for mobile P2P payments is built on the foundation that the service provides value to customers, who would be willing to pay for it. FIs may choose to charge a fee for expedited payments conducted over the mobile channel, for instance.
- Increase Wallet Share: FIs can enable customers to conduct mobile P2P payment transactions within the confines of their primary FI, without transferring money out or relying on traditional third party services. This allows FIs to maintain – and increase – the existing wallet share of the customer.
PERSON-TO-PERSON (P2P) PAYMENTS
P2P Payments empowers FI customers to initiate or request person-to-person payments within a single mobile banking session. It provides a seamless and unified user experience where customers can instantly and securely send money to other individuals – such as a landscaper or babysitter – at anytime from anywhere.
Initiating and completing a mobile person-to-person payment is easy. Upon selecting the option to send or request money, a customer can simply enter the email address or mobile phone number of the payee or payer. For added convenience, our P2P Payment solution is integrated with the mobile device's contact list, enabling a customer to easily select a payee or payer from his contact list.
After entering and reviewing the transaction details, the payment is processed and the customer receives confirmation directly on his mobile device.
P2P payments capabilities include:
- Unified user experience: Customers can easily, securely and conveniently initiate or request a P2P payment within a single mobile banking session.
- Seamless payment experience: Funds can be drawn or deposited from/to the customer's account via the mobile device.
- Contact list integration: Customers can quickly initiate or request a payment to individuals in their contact list.
- Real-time notifications: Generates and sends real-time alerts when payments are sent, received or requested (when supported by the P2P provider).
- Expedited and standard payment methods: Supports both payment methods, with fee indication (if applicable), allowing FIs to drive a measurable return on investment.
- Recurring payments: Supports the set-up and management of recurring payments.
- Pending payments: Customers can quickly view the status of pending payments.