Recently, peer-to-peer (P2P) payment apps have gained more popularity, and are impacting how online purchases are made. These apps are linked to a user’s bank account and are utilized for sending money to another user instantly. The Manifest, a B2B news and how-to website, surveyed more than 500 smartphone users to better understand the relationship between mobile payment apps and consumers’ purchasing behavior.
According to the survey, the usage pattern of P2P mobile payment apps varies significantly by different age groups. As opposed to 29 percent of millennials (ages 18 to 34 years old) that regularly rely on P2P payment apps to pay for eatables, only 10 percent of older generations do the same. However, baby boomers (55 years and older) were found to prefer P2P payment app as a payment option for physical items including garments and furniture. Regarding the statistics for purchases made overall by different generations of consumers, 51 percent of millennials utilize P2P payment apps compared to 48 percent of Gen X (35 to 55-year-olds).
Among the various P2P payment apps, PayPal dominates the market, and its subsidiary Venmo coming in to secure the second position in terms of popularity. 75 percent of the users surveyed preferred PayPal, owing to the convenience and flexibility offered by the app. PayPal is synonymous with security in the world of online transactions, and that is something that other mobile payment apps are struggling to replicate.
It is also not surprising that millennials prefer P2P payment apps more than older generations due to their familiarity and comfort with technology in general. “Just Venmo me,” is a common expression used by millennials to pay and distribute group expenses, such as a restaurant bill using a single credit card, instead of paying with several credit cards.
While cryptocurrency has the potential to revolutionize P2P payments, only 15 percent of respondents said that they used it to make a payment. This may be attributed to the fact that many people view cryptocurrency as a limited trend and that the “bubble will burst.” However, given cryptocurrency’s inherently digital nature, it may become a common method to make P2P payments in the future.
The way purchases were made has changed significantly over the centuries: from bartering to cash to credit cards. At present, P2P payment apps are leading the current transition to a cashless economy.