Peer-to-peer (P2P) payment apps have become super popular recently. These apps usually connect to individuals’ bank accounts and can be used to quickly and easily send $23 to a friend to cover a poker debt. The apps are slowly impacting how transactions and purchases are made – and are sparks of the coming of the cashless world.
If you think P2P payments is a flash in time, think again. Across the world, cashless culture is now the new norm and United States is among the top countries to have incorporated According to a 2017 eMarketer forecast, the transaction value of all U.S. P2P payments will exceed $156 billion in 2018 – rising to more than $244 billion by 2021. And although Pay Pal is the Lebron James of the P2P world, there are many new and up-and-coming players in the market.
Here are some cool stats on Global P2P usage
- Nearly half (46%) of smartphone owners regularly use P2P payment apps.
- PayPal is used most (73%) among P2P payment apps, followed by Venmo (14%)
- Payment apps are most popular among millennials (51%) but only slightly more so than Gen Xers (48%).
- Millennials use P2P payment apps to pay for food and drinks almost 3x more than older generations, potentially indicating a generational shift in how people split bills.
- Only 15% of respondents who use P2P payment apps have used cryptocurrency to make a payment.
Its clear, P2P payments is the future. But is it safe?
The biggest concerns involving P2P payments is fraud. P2P payments are generally secure, but they they’re not infallible. In fact, several recent Venmo users have had their funds disappear without explanation. Additionally, platforms like Dwolla have been hit with a $100 K fine by the Consumer Financial Protection Bureau.
When it comes to P2P and mobile fraud, Paygilant is the answer. Paygilant unique hybrid mobile detection and prevention approach integrates and correlates multi-intelligence data sets to determine fraudulent behaviour from the app. download stage to on-going transactions.
Without impacting and imposing on the user, Paygilant runs in the background to seamlessly stop P2P based mobile fraud.
The recipient of the EU Commission Horizon 2020 grant, an alumni of the Citi Innovation Lab, IBM Alpha Zone, and MasterCard Challenge, Paygilant provides banks, P2P processors and consumers comprehensive mobile fraud detection and prevention.