The latest Bank of America Trends in Consumer Mobility Report explores emerging payments trends – specifically person-to-person payment technologies (P2P) that allow consumers to send money to others via their mobile device – and forward-looking behaviors among adult consumers across the US.
The report found P2P is quickly becoming the new social “norm”, as 36% of adults currently use the service, with millennials leading the charge at nearly double that rate (62%). What’s more, 45% of consumers say they plan to start using the service within the next year, foreshadowing exponential growth in the coming months.
The survey also found that timing is top of mind when deciding to use a P2P service. Most users say they started using P2P due to convenience and time savings (68%). This motivation is closely followed by peer influence (48%), new offerings from banks (30%) and a desire to no longer use cash or checks (16%).
Users also agree that time is of the essence when paying each other back via P2P, as 69% of respondents say they pay each other back within the same day, and more than one-third say in under an hour. Similarly, 53% expect others to pay them back within 24 hours, and almost 22% within the hour.
“Technology is developing faster today than at any time in history, and our newest report demonstrates how consumers are embracing emerging technologies to make sense of their financial lives,” said Michelle Moore, head of digital banking at Bank of America. “We were among the first institutions to integrate the features of Zelle this year, and we look forward to developing new innovations that anticipate our customers’ ever-changing needs in the payments space.”
Other insights from the Bank of America Trends in Consumer Mobility Report include:
- 45% of consumers use P2P for shared expenses surrounding bills, followed by gifts (42%), travel (37%) and dining (35%).
- 51% of P2P users believe requesting a payment from others for $5 or less is socially acceptable, and 36% claim no amount is “too low.”
- In sharing opinions about others’ payments faux pas, people are most annoyed by others paying via check in store (51%), followed by a delay in cashing checks (38%).
- 71% of consumers believe children under the age of 10 won’t know how to write a check, 42% believe they won’t use physical credit cards, and 36% think they will only shop on their smartphones.