P2P – are we ready yet?

  A new report on mobile person-to-person (P2P) payments conducted by Javelin Strategy & Research suggests that most of the consumers desire high-speed transactions but only 10% are ready to start using mobile P2P payment services."Mobile P2P payments and transfers stand to transform the mobile landscape. Whether it's how we buy things, interact with friends and businesses or modify our trust and reliance on mobile devices - all the factors exist: economic, social and technological," said James Van Dyke, president and founder of Javelin Strategy & Research. "The demand for mobile P2P payments also paves yet another new avenue for banks to strengthen ties with customers. Consumers are clearly asking for quick, secure access to their money."

The research found that the main concern brought up by consumers was the security. Even "tech savvy" mobile users worry about the loss of personal information (62%) and fraudulent transfers (52%). 63% said that if the security for P2P payments will receive significant enhancements they would more willingly adopt the new service. "Perceived security threats are definitely the sticking point for mobile P2P payments right now. Once the safety and access hurdles are cleared, we expect this technology will become part of everyday life," said Mary Monahan of Javelin Strategy & Research. It was also noted that the younger consumer is, more willing he/she is to start using this type of payments to manage finances. Older consumers are more comfortable with the old ways of conducting financial transactions.

The report also highlights two important unexploited markets for P2P payments: unbanked consumers - those who do not hold checking or savings accounts and consumers who regularly transfer funds. According to the World Bank, international money transfers account for more than $232 billion, with $167 billion going to developing countries.

                                                Marianna, reporter of Ecommerce journal