As financial institutions look to revamp their payment strategies, peer-to-peer payments are expected to play a key role, says a report from Cornerstone Advisors.
During the past three years, nearly 30% of community-based financial institutions have replaced their P2P service or selected a new one, and about one in five intended to replace their existing P2P payments system in 2022, the report says. In many cases, the P2P service selected was Zelle, according to the report.
“Many banks and credit unions are re-evaluating their P2P services due to consumer demand, as many smaller players in this space are becoming less relevant,” says Sean Loosli, head of consumers and small business payments for Zelle.
Cornerstone surveyed 3,112 consumers in the United States, a sample it says is representative of the U.S. adult population in terms of age, gender, and race. The study was commissioned by Early Warning Systems LLC, operator of the Zelle Network.
To many consumers, P2P payments are table stakes for financial institutions. When asked what action they would take if the financial institution that holds their primary checking account stopped offering P2P payments, 30% of respondents said they would use a checking account with a different financial institution more frequently, 24% said they would close their account, and 23% said they would open an account with another financial institution.
Other actions cited included using the checking account at their primary financial institution less frequently (18%), not recommending the financial institution (17%), lodging a complaint (14%), and doing nothing (23%). Respondents could cite more than one action.