Consumers like p2p payments for e-auctions, but little else, Jupiter says
Person-to-person payments are a cornerstone of online auctions; 75% of eBay auctions listed in the second quarter of this year offered PayPal as an option, while 59% of PayPal’s volume that quarter were for online auctions. However popular among online auction-goers, however, web-based p2p’s appeal among consumers for use in other functions remains limited, according to new findings from Jupiter Research.
Only 15% of consumers polled recently by the research firm said they would prefer to use the web to transfer money to another person, compared with 37% who said they prefer to do so in person. Online users said they preferred using the web for other purposes such as checking account balances, cited by 44% of consumers, and paying bills, cited by 24%. Those who did prefer using the web for p2p payments tended to be early online adopters. “Apart from auctions, PayPal’s success in p2p payments has been limited,” says Jupiter analyst Fiona Swedlow.
Banks looking for a way to extend services to p2p payment should instead investigate developing cross-institution account transfer capabilities, says Jupiter, noting that consumers already show interest in transferring money between their own accounts–-9% in a recent Jupiter survey--at the same institution.
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