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Mobile P2P payments could be key to Gen Y

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MADISON, Wis. (10/6/09)--Credit unions who want to reach Generation Y may be interested in offering mobile person-to-person (P2P) payment services. Jeffrey Yabuki, president/CEO of Fiserv, said mobile P2P services could be the key to reaching Gen Y. He noted that while Gen Y accounts for 9% of P2P transactions, it’s likely that number will jump to 40%. P2P payment services “are likely to be one of those vehicles used by that group as a regular part of their day,” Yabuki added. P2P services allow users to route money to others with their cell phones. Gen Y members grew up with e-mail and mobile phones as a significant part of their lives, Yabuki said. Fiserv plans to launch a P2P service next month. As many as 2,500 financial companies could use the service when it becomes available, said Steve Shaw, Fiserv director of strategic marketing (American Banker Oct. 4). CashEdge, Inc. and MasterCard have already launched P2P services. CashEdge launched POPMoney in June, and MasterCard offers MoneySend. POPMoney allows users to send electronic payments by using the e-mail address or mobile phone number of the payment recipient. Similarly, MoneySend lets MasterCard issuers send each other payments, the Banker said. About 33% of online consumers with mobile phones surveyed by Javelin Strategy and Research said they would be interested in using P2P payments. Sending and receiving money quickly would be a primary motivation for using a mobile P2P program, respondents said (BusinessWireJuly 29). Roughly 81% of respondents said they would use a P2P service if it was offered by their financial institution, a CashEdge survey found. About 77% said they would use a P2P service from their financial institution instead of an independent provider. Seventy-three percent said their financial institution would be more secure than an independent provider, while 69% said the service would be more convenient than using an independent service.