P2P Is Gaining Steam, but Security Concerns Remain
Consumers prefer to use P2P payments for retail purchases, paying back relatives and friends, and settling bills—but not so much for contributing to group gifts or paying housing costs, according to a new report from NerdWallet. It also found that that while only 35 percent of U.S. consumers use such P2P products as Venmo, PayPal and Square Cash, 63 percent are interested in the payment technology.
NerdWallet based its findings on a survey of 2,000 U.S. adults conducted in May and June. The survey report arrives at a busy time for P2P. Apple, for instance, has enlisted Green Dot to help the tech giant in its bid to unseat Venmo and other established players in the increasingly crowded P2P space. And more banks and credit unions are joining the Zelle Network, a peer-to-peer payments platform in the U.S.
The NerdWallet report found that:
- Of the 35 percent of consumers who use P2P services, 56 percent of them link their credit cards to P2P accounts.
- 65 percent of Americans think paying with a P2P payment app is secure, while 35 percent do not.
- 60 percent would feel less obligated to pay someone back if they requested payment via a P2P app than if they were using another form of payment
When it comes to using P2P services, 59 percent of surveyed consumers are willing to use them to pay for retail purchases. That compares with 55 percent who said the same thing about paying back friends or family members, and paying bills; and 43 percent who said they would use P2P to give a “cash” gift directly to a recipient, and 39 percent who would use P2P to loan money to other people. By contrast, only 32 percent would use P2P to pay rent or house payments, and only 30 percent would use P2P to contribute to a group gift.