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P2P, Mobile Closely Linked
Person-to-person (P2P) payments will be the path to mobile payments for financial institutions, Paul Grill, partner with First Annapolis Consulting (www.1st-annapolis.com), told bankers at the Federal Reserve Bank of Chicago Payments Symposium 2012 Tuesday.
PayPal was the first iteration of electronic P2P payments, though the original platform is long gone and PayPal is only one of several participants in the market today, including mobile wallet providers, financial institutions and others.
According to First Annapolis research, electronic P2P is approximately an $80 billion to $120 billion market opportunity. According to Grill Rapid growth is being driven more by use cases like ad-hoc bill payment, micro-merchant purchases, and intra-family transfers, than by the “split the dinner bill” transactions historically associated this type of network.
According to First Annapolis, over half of the solutions evaluated now facilitate new user registration entirely from a mobile device, and 75 percent can leverage the user’s existing contacts list to populate recipient information, a feature that is highly correlated with a faster consumer transaction sequence.
Grill and several other speakers at the conference pointed out that speed is one of the issues that is critical for the acceptance of all types of payments.
For financial institutions, person-to-person payment is a challenging business because in and of itself it is not a profitable offering, according to Grill. However, the feature does help financial institutions build or enhance its relationship with its customers.
“P2P payments is a natural extension of bill payment,” Grill said, adding that the ability to integrate P2P with contact lists is an essential element of advancing these payments because it makes them that much simpler to use.
2012-10-28 03:22:13
Source: http://mobilemarketingandtechnology.com/2012/10/27/p2p-mobile-closely-linked/
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