• SELECT SITE CURRENCY
Select a currency for use throughout the site
Person-to-Person Mobile Money Transfers: Successfully Navigating a Market in Transition
Javelin Strategy & Research, November 2010, Pages: 44
This report examines mobile P2P services offered by 14 vendors and FIs throughout the world. According to our consumer survey results from July 2010, the number of consumers likely or very likely to conduct a mobile P2P transfer in the upcoming 12 months stood at 8%, whereas 68% of those surveyed stated that they would likely not make a mobile P2P transfer in the next year. Despite the low number being reported by consumers, there are some bright spots in the U.S., and vendors operating internationally all report strong mobile P2P adoption in emerging markets.
The adoption overseas is being driven by the lack of banking infrastructure and lack of competing products (alternatives) in emerging markets. In the U.S., a multitude of FIs are starting to offer mobile P2P services, and if they successfully implement and market those services, they can increase consumer usage in the near term. In addition to analyzing 14 vendors and FIs, quantitative consumer data provided insight into consumers’ attitudes regarding mobile P2P in the U.S. The market in the U.S. is clearly in transition.
In 2010, one offering is being discontinued (from Citibank/MasterCard/Obopay), and several other vendors (CashEdge with POPmoney, Fiserv with ZashPay and Monitise Americas) and major offerings (Bank of the West, JPMorgan Chase, PNC and U.S. Bank) are launching their services. Jack Henry & Associates further announced The WayiPay, a standalone version of the iPay P2P Internet payment solution the company acquired in June 2010. Jack Henry expects to launch the service in the fourth quarter of 2010.
- Will consumers use mobile person-to-person (P2P) payments?
- What is the value of mobile P2P transactions to various payment ecosystem players?
- What are the key marketing strategies of mobile P2P, and which consumer segments are the most viable initial targets?
- What mobile P2P transfer offerings are available in the marketplace?
- What vendor models are poised for success and why?
This report is based on data collected online from a random-sample survey panel of 3,100 respondents with mobile phones in July 2010. The overall margin of sampling error of ± 1.76% is at the 95% confidence level.
This report further includes data collected online from a random sample of 5,211 households in March 2010. The survey targeted respondents based on proportions of gender, age and income representative of those of the overall U.S. online population. The margin of sampling error is ± 1.36% at the 95% confidence level.
In addition to conducting the above surveys, Javelin reviewed websites of the vendors discussed as part of this report and sent questionnaires to them. Where required, follow-on interviews were conducted with the vendors as well as with FIs that offered mobile P2P payments. For comparison purposes, this report further made use of data from Javelin’s July 2009 Mobile Person-to-Person Payments report.
Mobile Person-to-Person Payments
Timeline of Key Mobile P2P Initiatives
U.S. Consumer Usage Analysis
Overview of U.S. Consumer Interest in Mobile P2P Payments
Primary Reason for Using Mobile P2P Payments
Frequency and Value of Users’ Mobile P2P Transfers
Mobile P2P Market Sizing
Barriers to U.S. Adoption of Mobile P2P Payments
U.S. Consumers’ Concerns
Mobile P2P Opportunities Outside the U.S.
Overview and Comparison of Mobile P2P Payment Vendors
Mobile P2P Dimensions
Solution Provider Model
List of Figures:
Figure 1: 1999 PayPal Beam Money Screenshot
Figure 2: Overview of Key Global Mobile P2P Launches
Figure 3: Consumer Interest in Making a Mobile P2P Transfer
Figure 4: Target Smartphone for Mobile P2P Offerings
Figure 5: Consumer Likelihood to Use Mobile P2P in the Next 12 Months by Age
Figure 6: Consumer Usage of Mobile P2P
Figure 7: Consumers Key Reasons for Using Mobile P2P Services
Figure 8: Monthly Frequency of U.S. Mobile P2P Transfers
Figure 9: Average Value of a U.S. Mobile P2P Transaction
Figure 10: Market Sizing for Mobile Person-to-Person Transfers
Figure 11: Online Transfers and Wire Transfers by Category, 2009–2014
Figure 12: Consumers’ Concerns with Mobile P2P Transfers, 2007–2010
Figure 13: Consumers’ Concerns with Mobile P2P Transfers, 2010
Figure 14: Smartphone Users’ Concerns with Mobile P2P Transfers by Smartphone Type
Figure 15: Functionality That Banks Offer on Mobile Devices
Figure 16: Global Households That Have Formal Deposit Accounts with a Traditional FI
Figure 17: Mobile P2P Payments Models and Vendors
Figure 18: EnStream’s Zoompass Mobile P2P Application
- Bank of America
- Bank of the West
- Monitise Americas
- Jack Henry & Associates
- U.S. Bank
- JPMorgan Chase
- Western Union