The Quest To Kill Cash: New Apps Are Finally Getting People To Abandon The ATM


U.S. P2P Mobile Payments


Credit and debit cards have already gone a long way to getting people off of cash and checks.


But there is one type of payment that still requires a trip to the ATM or a desperate hunt for the checkbook. Called peer-to-peer (P2P) payments, these informal transactions are made between people - say to pay someone back for a concert ticket or to pay a babysitter for a few hours of work.

A new crop of apps, though, is changing the way these types of payments are made. In a new report from BI Intelligence we take a look at apps like Venmo, Square Cash, and M-Pesa, which are allowing people to transfer money back and forth using just a smartphone. Already, PayPal-owned Venmo, one of the leading mobile P2P apps, says it saw $314 million in transaction volume on its app last quarter.

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In the report, we take a close look at what's so compelling about these mobile P2P apps, and forecast mobile P2P payment volume through 2018. We explain what differentiates some of the most successful P2P apps and how we see adoption of smartphone-based P2P payments ultimately transitioning people onto mobile payments in general.

What's really interesting about these apps is not just the services they provide for people, which solve a real pain point. It's the fact that these services could ultimately get people to make mobile payments in general. There's good reason to think that this is what these apps are really after. These companies often make little to no money off of facilitating peer-to-peer transactions, but if they can become the platform for in-store mobile payments, there could be real revenue at stake.


To access the full report and all our coverage of the payments industry, sign up for a free trial.

Here are some of the report's key findings:

In full, the report:

BI Intelligence is a subscription research service from Business Insider. We cover the payments, mobile, digital media, and e-commerce industries. For full access to all our charts and analysis, sign up for a free trial.