Thursday, June 16, 2022
Jodie Kelley, CEO of the ETA, attributed growing adoption to merchant efforts to improve the customer experience. "Merchants are responding to consumer demand," she said. "P2P payments were traditionally used for friends and family to pay one another. But as their usage grows, we find that consumers are interested in utilizing them to pay merchants."
Jared Drieling, senior director of market intelligence and insights at TSG, agreed that P2P usage is soaring. "The future of P2P payments looks bright – especially among newer establishments and gig workers," he said.
Researchers cited open banking as a key driver of growing P2P payments adoption. "As P2P methods continue to see adoption with more consumers experimenting with side hustles to generate supplemental income, there is also a push among financial institutions for P2P methods to move upstream to larger businesses, powering the market overall and furthering a bright future for P2P," they wrote.
Despite some reports of P2P payments scams and other drawbacks—including uneven fee structures, poor dispute resolution and unexpected holds or delays in receiving funds—a majority of survey respondents were optimistic about P2P payments, including the 35 percent of merchants surveyed who also have a traditional merchant services provider.
Findings, based on a March 2022 survey of more than 500 small and micro businesses in various industries and regions across the United States, indicated 82 percent of respondents accept at least one digital P2P payment option at their businesses. Following are additional survey highlights:
To download a copy of the ETA and TSG infographic encapsulating this research, visit: www.electran.org/wp-content/uploads/TSG-ETA-P2P-Payments-Infographic-2022.pdf.
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