According to the data economy companyStatista, “Over the last 10 years, fintech has evolved from a niche and elusive industry trend into a transformative force in the global financial landscape. Initially associated with small startup ventures, fintech today includes multibillion-dollar enterprises.”Considering that the fintech landscape is poised to continue growing, fintech issuers would do well to embrace peer-to-peer (P2P) transfers. Consumers who are sending and receiving money find P2P transfers appealing because they are safe, secure, and seamless.
The Value of Peer-to-Peer Transfers
At their core, fintechs exist to make financial products and services more accessible and user-friendly. One way these fintechs can prioritize their customers’ needs and meet their demands is to incorporate P2P transfers within their applications and platforms.
A study published by PYMNTS reports that consumers want fintechs to make money mobility a top priority—sending and receiving money through instant transfers is a top desire for them, but less than half of fintechs make it possible for consumers to make these P2P transfers. Their report—based on surveys with nearly 2,300 U.S. consumers and 150 FinTech issuers—finds that “P2P transfers rank as the number one service consumers expect when using a FinTech provider.”
Fintech executives willing to incorporate P2P payment systems would demonstrate to consumers that their convenience remains a top priority and that their chosen fintech remains committed to adopting cutting-edge technology. By integrating P2P functionality and introducing P2P payment functionality, fintechs can leverage their existing infrastructure to provide a familiar and safe environment where transferring funds consistently results in a satisfying digital transaction experience.
P2P payment services also allow fintechs to remain competitive in a fast-paced financial landscape. They compete not only against one another but also with well-established traditional banks that have a physical presence and a trusted menu of financial products and services. Consumers interested in switching to fintech solutions may be more likely to choose the fintech that offers P2P transfers, as P2P payment services simplify money movement in a modern, approachable, and convenient way.
The more fintechs continue to simplify financial landscape, the more they can continue to welcome new users to their platforms, earn their trust and keep it. P2P payments have the potential to foster positive financial relationships between fintech and the populations they serve, particularly with millennials and Gen Z.
In an article published by Forbes titled “Generation Z Surpasses Millennials In P2P Payment Usage,” author Donna Fuscaldo shares that fintechs are winning over millennials as well as those who belong to Generation Z who are “emerging as an even more voracious user of digital technology.” Given that younger generations are most likely to utilize P2P payment services, fintechs are in an ideal position to establish loyalty among them, which would bode well for their future growth and success.
Neural Payments P2P Payment Solution
Fintechs eager to adopt a payment solution that offers instant transfers are encouraged to contact our team at Neural Payments. We’re passionate about integrating P2P payment systems that empower fintechs to better engage with their users. Our open-loop system is revolutionizing the way money moves, and we’re confident you’ll be impressed by how we’ve elevated the traditional P2P transfers experience by simplifying the process for your consumers.
For more information about Neural Payments and how we can help you establish a reliable P2P payment solution, request a free 30-minute demo, email us at info@neuralpayments.com, or complete our online submission form. We look forward to sharing our safe, secure, and cost-effective P2P payment solution with you!
