FIS has announced results of research by eCom Advisors that it commissioned along with NACHA and PayPal. It found that “demand for electronic P2P payments and transfers is growing rapidly and the interest of making these and other payment transactions through an e-payment portal is strong as well. In fact, the study found that of those who were interested in the portal concept, 70% would be likely to use P2P payment services within that portal.”
Furthermore, 34% who expressed interest in the portal concept indicated they would be willing to switch to a bank that offers e-P2P payments as part of an e-payment portal, a new product concept tested in the research that is defined as a service provided by a financial institution that allows consumers to transfer money, pay bills, conduct P2P payments, and track all their money movement from a single place online.
The study indicates there is a big opportunity for e-P2P payments to replace cash and cheque exchanges between individuals. Almost 50% of consumers expressed interest in using e-P2P for common needs – for example, sending money to a child at college, sending money out of the country or splitting the cost of a gift with family members, co-workers or friends.
To encourage adoption, banks need to position e-P2P payments as a component of a payment and money movement solution. The research indicates that banks will benefit most by promoting P2P payments to online banking and bill payment customers, as well as users of m-banking services and payments. The study also suggests that there should be a strong link between banks’ m-banking solution and the e-P2P portals.
The study also showed that there is considerable scope to drive adoption by making consumers aware of how easy it is to initiate e-P2P payments and how many channels there are available.
‘The major objective in conducting this research was to investigate and understand specific strategies to increase consumer adoption of online bill payment and P2P payments,’ said Paul McAdam, a partner at eCom Advisors. ‘Once we uncovered the attitudes and perceptions of the participants as they related to e-payments, we were able to determine the role of a financial institution as a centralised money movement portal and offer ideas on how to promote this type of service.’
FIS has integrated PayPal’s P2P payment system into its online bill payment application for financial institutions. FIS’ P2P solution enables its banks clients’ consumer and business customers to make payments from their bank accounts to PayPal users worldwide through the internet or mobile devices.
Extraordinary how well the research the companies paid for back up their business decisions.