September 15, 2015
Today, banks across the world agree to the fact that person-to-person (P2P) electronic payments have a far-reaching impact. Banks have always focused on deposits, loans and other financial services which are basically their main businesses, and have considered payments as a value-added service. Now, things have changed with a lot of startups foraying into the space and offering payments products. Banks have now realized that payments can also be one of the sources of revenue. The P2P payments product launched by Facebook is a real eye opener as technology companies barge their way in.
Today, most of the banks across the world have a P2P payments solution which either works on systems like ACH or clearXchange. In a few cases, the cost of transactions through banks are higher than third party providers and also time-consuming.
In this article, I would like to summarize why the P2P payments market is undertapped and what benefits banks can reap by launching same-day or faster P2P payments solutions, which everyone seems to be looking for.