Overview

Cash and checks are two of the last remaining categories of payments left to be digitized. They are often the payment types of choice to settle transactions between individuals. The proliferation of Internet-connected devices and simple applications makes it possible for an individual to transfer funds to another individual or microbusiness using only the recipient’s email address or cell phone number via person-to-person (P2P) payment. Unlike other new payment types or payment form factors, P2P can achieve scale rapidly because all the necessary market components are in place, including motivated consumers, existing infrastructure, and low to no-cost price points to encourage adoption.

Mercator Advisory Group’s research report, The Opportunity of Person to Person Payments, explores the existing products and product providers in the P2P marketplace, describes how they operate, and estimates the current and addressable market size.

“Third-party fintech companies are receiving most of the industry attention right now when it comes to P2P solutions. Financial institutions, however, have customers who trust them with accounts that have already been authenticated, which provides financial institutions a significant product and security advantage. This is a market that is theirs to lose,” comments Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group and author of the report.

This research report has 25 pages and 12 exhibits.

Organizations mentioned in this research report include: Apple, Bank of America, Capital One, ClearXchange, Dwolla, FirstBank, FIS, Fiserv, Google, JPMorgan Chase, MasterCard, NACHA, PayPal, Shazam, Snap Chat, Square, US Bank, Venmo, Visa, and Wells Fargo.

Highlights of this research report include:

  • Step-by-step descriptions of the process of account set-up and initial transaction for the sender, the recipient, and the provider of the P2P service 

  • Review of how transactions are initiated and settled 

  • An overview of the categories of market providers with examples

  • Profiles of example P2P providers in each category

  • Estimates of the current market volumes and the addressable market

  • Discussion of the financial institution vs. fintech battle for the P2P consumer

Book a Meeting with the Author

Related content

November 06, 2025
2026 Debit Payments Trends

For decades, the checking account has served as the foundation on which all consumer and business payments have rested. But that stability is now beginning to give way to the seemi...

August 28, 2025
Shifting the Balance: How Consumers Are Using Bank Accounts Today

Consumer payment habits show an interesting blend of change and resilience. As those habits relate to the use of checking accounts—and even fintech offerings that aren’t really che...

July 25, 2025
The Great Bill Pay Reset: How Real-Time Payments and Open Banking Are Upending the Status Quo

Bill pay is no longer a utility but the frontline battle for agent-driven, real-time payments. The evolution of open banking and financial automation means banks that fail to moder...

Make informed decisions in a digital financial world

Let's Connect