Consumers transferred over $195
billion in 2011 using online, mobile, and other electronic channels, according
to a report from Javelin Strategy & Research. Person-to-person transfers
accounted for $21.6 billion of the transfer market, while the bulk of transfers
were made between individuals' own accounts.
Three primary contenders are vying
for the top position supporting P2P transfers: PayPal reigns as the current
market leader, but Fiserv's Popmoney and the clearXchange consortium pose
serious threats with networks linking thousands of financial institutions and
consumers.
Popmoney connects 1,400 financial
institutions and a potential 16% of U.S. banking customers through its existing
online and mobile banking relationships. Similarly, clearXchange-a partnership
among Bank of America, JPMorgan Chase, and Wells Fargo-represents 37% of the
total U.S. banking market customers.
In the past year, one-third of
consumers made an online P2P transfer, while fewer than one-in-ten completed a
mobile transfer, but the potential for both channels is continuing to grow,
according to Javelin.
"Significant revenue
opportunities are up for grabs for the P2P vendor that emerges as the leading
multi-institutional transfer provider, but there is no clear indication who
that vendor will be," says Beth Robertson, director of Payments Research at
Javelin. "In addition to PayPal, Popmoney, and clearXchange, there are a
number of newer P2P players, such as American Express Serve, Dwolla, Chirpify,
and Square, that threaten to shake up the market with their with innovative
platforms, approaches, and technologies." Square recently was the beneficiary
of a $25 million capital investment by Starbucks.
"Financial instituitons and vendors
also need to get ready for the next wave: international mobile P2P
transfers," says Jim Van Dyke, president, Javelin. "Mobile P2P
transfers have already achieved strong adoption and usage within emerging
international markets. Our research shows that one-third of all mobile
consumers and one-third of underbanked mobile consumers in the United States
are likely to complete an international P2P transfer using a mobile
device."
The report is based on two online
surveys of 3,100 and 5,300 consumers each.
https://www.javelinstrategy.com/news/1345/92/Person-to-Person-Transfers---The-Final-Cash-Frontier/d,pressRoomDetail
[This article was posted on August 21, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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