P2P electronic payment transfers to experience high growth by 2014 – research

One of the main elements which the research has identified as extremely important in the development of P2P electronic payment transfers has to do with the development of smartphones (the Apple iPhone in particular), an opportunity which financial institutions are expected to further exploit in the coming years.

The research, which was conducted by Javelin, examines the potential of and growth in new transfer alternatives, such as online and mobile channels, for person-to-person (P2P) transfers. The report also includes a five-year forecast of the U.S. household market for online P2P transfers, online inter-institution account-to-account transfers, and wire transfers sent using a bank or credit union or a retail service such as MoneyGram or Western Union.

Javelin’s 2009 Trends in Multi-Channel Account-to-Account Transfers and Person-to-Person Payments Report also indicates that online banking users move funds more, with research showing they recently used account-to-account banking transfers at a rate that is triple that of all other consumers. Also, the number of mobile P2P payments users is expected to grow significantly over the next several years, but due to limited “P2P coverage” (places to use these services) consumers must still expect some obstacles.