Demand for high-speed mobile person-to-person?(mobile P2P) payments and transfers is growing, with one in ten consumers saying they would likely use the service if it were available, according to a report by Javelin Strategy and Research.
Still, 67% of consumers surveyed expressed clear hesitance in using mobile P2P payment services, saying they would be “very unlikely” to adopt them:
Speedy, Secure Payments
Consumers cited speed and convenience as primary incentives for adopting mobile P2P payment services. However, security is a main concern:
- The loss of personal information (62%) and fraudulent transfers (52%) are fears even among “tech savvy” consumers.
- 63% of consumers said enhanced security would encourage them to use mobile P2P payments.
“Perceived security threats are definitely the sticking point for mobile P2P payments right now,” said Mary Monahan, partner and senior analyst at Javelin. “Once the safety and access hurdles are cleared, we expect this technology will become part of everyday life.”
Below, the demographic findings from the report.
- 25-44-year-olds who earn more than $100,000 per year are the most willing to use mobile P2P services.
- Among 45-55-year-olds, 39% said anytime/anywhere access to their money is important, but just 14% of the group said they are likely to use mobile P2P payments.
- In the 55-64-year-old group, 39% value the ability to send and receive money quickly (more so than any other group) – but only 11% are likely to use mobile P2P payments.
- Among 18-23-year-old consumers, 23% are motivated to adopt the service by the prospect of avoiding cash/check use.
Unbanked consumers – those without checking or savings accounts – are good candidates for mobile P2P adoption, Javelin said.
Fully 60% of unbanked consumers would be willing to move away from money lenders toward banks to have the ability to conduct mobile P2P payments, more so than banked consumers would be to switch banks (22%):
Another untapped resource for the mobile P2P market are the 38 million migrants who send international remittances, now standing at $232 billion, $167 billion of which flows to developing countries.
About the report: The report is based on an online survey of 2,192 consumers, a survey of 26 executives from the financial industry, and 10 interviews of executives in the payments industry. It outlines target consumer segments, obstacles and drivers for product adoption, and offers case studies of three creative mobile P2P payment models from PayPal, Obopay and mChek.