P2P apps now dominate payments between individuals, eclipsing cash
P2P platforms are consumers' choice about half of the time, and the providers of P2P services enjoy considerable stickiness. But a minority say they could walk away from their current platform if key concerns aren't addressed.
Person-to-person mobile apps have solidified a majority share of consumer money transfers between individuals in the U.S., according to a recent survey by the Federal Reserve.
For the first time in the history of the Fed’s study, the 2024 Diary of Consumer Payment Choice, cash was not the method most-often used for in-person payments of $25 or less. Cash was tied with debit for these smaller payments.
Cash still shows some stickiness, but it is now second to P2P apps for payments between people. Cash is in third place for making all types of payments, surpassed by credit and debit cards. Cash came ahead of checks for all types of payments.
Notably, Target, the nation’s #7 retailer as ranked by the National Retailers Federation, announced that it will stop accepting checks on July 15. (Walmart, the #1 retailer, still takes personal checks.)
continue reading »