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P2P Payments: The Global Opportunity Product Image

P2P Payments: The Global Opportunity

  • Published: December 2012
  • Region: Global
  • Datamonitor

The global P2P market is currently undergoing a phase of rapid and unprecedented development driven by both changes in global consumer dynamics and the impacts of emerging, and potentially trans-formative technologies. As the market continues to grow, payment providers are now faced with the opportunity to replace more traditional forms such as cash and cheques, but will face new challenges.

Scope

- Understand the market's potential with Datamonitor's proprietary P2P data metrics.

- Form your strategy effectively by measuring the level of current P2P activity in domestic transactions.

- Identify new opportunities with Datamonitor's market sizing of the remittance market.

- Develop your market entry plans effectively by seeing which markets are emerging as the key remittance corridors.

Highlights

- Up to 90% of consumers globally report they conduct P2P transactions in their personal lives, while a further 83% report they conduct P2P transactions for gifting purposes. Further to this cash remains dominant and in use for up to 82% of P2P transactions. Replacing cash is a key opportunity for payment providers.

- The International READ MORE >

OVERVIEW

- Catalyst
- Summary

P2P PAYMENTS: THE GLOBAL OPPORTUNITY

- Overview- Remittances continue to grow globally
- Opportunity is high at a domestic and remittance level- Up to 90% of consumers globally conduct P2P transactions of some description
- The continued use of cash means it is ready to be displaced by alternatives
- Patterns of gifting are similar to those of P2P payments and presents opportunities
- Cash use remains dominant across all demographics
- Despite its global potential, P2P remains dominated by regional and cultural considerations- The level of opportunity represented by current cash use is highest in markets with less established alternatives
- Unlike cash, bank transfer usage shows greater variability between regions
- Cheque use remains surprisingly high in some markets, reaching 53.5% of French consumers
- Remittances Continue to Grow Globally - Revenues from remittances for P2P providers stood at near $46.6bn in 2011
- After a marginal decline global remittances have seen a return to growth
- The US and Saudi Arabia are the largest originators of remittances
- High growth economies remain key to international remittance corridors
- Remittance costs vary widely by region presenting an opportunity for cheaper alternatives

APPENDIX

- Global remittance data
- Consumer P2P tool use
- Definitions- Credit card
- Debit card
- European Payments Council
- e-purse/e-wallet
- Interchange
- Merchant service charge
- Mobile network operator
- Mobile payments
- Person to person payments
- Point of sale terminal
- Prepaid card/stored value card
- Trusted service manager
- Methodology
- Further reading
- Ask the analyst
- Disclaimer

TABLES

- Table: Global remittance inflows and year-on-year growth ($m), 2000–11e
- Table: Top 10 global remittance originators ($m), 2006–10
- Table: Top 10 global remittance receivers ($m), 2006–11e
- Table: Average remittance cost (% of transaction), 2010–11
- Table: P2P usage (% of consumers)
- Table: P2P usage by age (% of consumers)
- Table: P2P gifting (% of consumers)
- Table: P2P tool use by value of transaction (% of consumers)
- Table: P2P tool use for gifting by value of transaction (% of consumers)
- Table: P2P tool use by age for very low value transactions (equivalent to <$10)
- Table: Cash usage for very low and high value P2P transactions by country (%)
- Table: Bank transfer usage for very low and high value P2P transactions by country (%)
- Table: Top 10 users of cheques by country for high value ($100+) P2P transactions (%)

FIGURES

- Figure: 90% of consumers globally conduct very low value P2P transactions
- Figure: 82.0% of consumers use cash for very low value P2P transactions
- Figure: Up to 83.1% of consumers give P2P gifts
- Figure: Cash is the most popular mechanism for P2P gifting
- Figure: Cash use is dominant for very low value transactions across all age bands
- Figure: Russia holds the highest use of cash for high value P2P transactions at 68.7%
- Figure: 62.6% of Swedish consumers use bank transfers for high value transactions
- Figure: 53.5% of French consumers prefer cheques for high value P2P transactions
- Figure: Remittance flows reached $500.1bn in 2011
- Figure: The US is the world's biggest remittance originator, and reached $51.6bn in 2010
- Figure: India is the world's biggest receiver of remittances, reaching $63.7bn in 2010
- Figure: Sending remittances to Sub Saharan Africa cost an average of 12.4% in 2011

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