Replacing Cash & Checks with P2P Money Movement

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Replacing Cash & Checks with P2P Money Movement

  1. 1. Research Brief April 2010 Replacing Cash & Checks with P2P Money Movement Abstract This research was designed to understand online banking consumers’ reactions to two new product concepts. The first concept is using P2P payment services offered by a financial institution. Nearly half of those surveyed (48%) would likely use this type of P2P solution. The second concept is using an ePayment Portal — a service provided by a financial institution which allows consumers to transfer money, pay bills, sendTable of Contents and receive P2P payments, and track all their mon- ey movement from a single place online. Nearly half (49%) expressed interest in the Portal. Of thisExecutive Summary 1 interested population, 70% would likely use theIntroduction 2 P2P payment services within the Portal.P2P Awareness and Likely Adoption 2 Integration with mobile banking services will beCross-Border P2P Payments 5 key to driving consumer adoption of these two newIntegration with Bill Payment 5 product concepts. Today’s active mobile bankingThe Mobile Opportunity 7 consumers are twice as likely to use P2P paymentsConclusion and Action Items 8 and the Portal as purely computer-based online banking and bill payment consumers.About the Research Partners 10
  2. 2. Executive Summary The next 12 to 24 months promise to be an active period of P2P payment services explora- tion, pilots and rollouts by nancial institutions. Our recent national research of active online banking consumers reveals considerable opportunity for P2P payments to replace check and cash transactions — particularly if P2P is o ered inside online banking and bill pay applications. Nearly half (48%) of consumers surveyed expressed interest in using P2P payments offered by their financial institution. When asked about the scenarios in which they would use P2P, a third (33%) of consumers said they would likely use it to send money to a child at college. Almost as many (31%) said they would send money to an individual out of the country. A quarter (25%) would likely use P2P to split the cost of a gift with other people. Product functionality and marketing messages that support simplicity, payment speed and record keeping are essential to driving consumer interest. The ability to send money in just a few simple steps and an assurance that the recipient will quickly receive guaranteed funds are key requirements (82% of consumers cited both as important). 86% of consumers feel the ability to keep track of their transaction records is important. Many consumers will react positively to P2P payments that are built in to a suite of online bill payment and money movement solutions. Nearly half (49%) of consumers expressed interest in the concept of an ePayment Portal — an online solution that would allow consumers to transfer money, pay bills, send and receive P2P payments, and view and track the movement of their money. And of those who expressed interest in the Portal, 70% would likely use the P2P portion of the Portal. In fact, out of eight payment features presented in the Portal concept test, P2P was the third most popular, behind making bill payments (88%) and making same-day emergency payments to avoid late fees (75%). The attractiveness of the Portal concept is validated by the fact that 34% of the consumers who expressed interest stated they would be willing to switch financial institutions in order to obtain the Portal service. Record keeping, convenience and reporting tools are primary benefits that will encourage ePayment Portal adoption. 81% of consumers cited access to a complete record and history of payments of all types that run through the Portal as being important. Other benefits that resonate with the vast majority of consumers include: the ability to make all payments and transactions from one central online location; not having to write and mail checks for bill pay or personal (P2P) payments; and reporting tools to help them budget and spend within their means. The utilization of incentives or rewards will enhance consumer interest in the ePayment Portal. 69% of consumers would be likely to use the Portal if offered an incentive by the financial institution (compared to 49% without an incentive). Consumers resoundingly identified cash back awards as the most valuable form of incentive (75% selected this option). Integrating P2P payments and ePayment Portal services with mobile banking services and promoting the services to existing mobile adopters are key. More than all other factors, current utilization of mobile banking services is the most significant indicator of likelihood to use P2P payments and the Portal. Today’s active mobile banking consumers are twice as likely to use P2P payments and the Portal as purely computer-based online banking and bill payment consumers. Unlike a decade ago, when financial institutions made their initial foray into P2P payments, today there is a significant base of consumers who are comfortable with electronic payments. 40% of the surveyed consumers stated that they have already used a P2P payments service to send money to another individual at one time or another, and 93% reported awareness of the PayPal brand name. In addition, while PayPal is currently primarily used for consumer-to-business transactions, they already have 81 million active accounts worldwide. This represents a ready base of P2P consumers for a financial institution’s additional services. 1 April 2010
  3. 3. Replacing Cash & Checks with P2P Money Movement Introduction completed in February 2010 found there is attractive potential for P2P payments offered by financial institutions Sending money to a child at college; paying a friend to replace paper payments, especially if P2P is offered back for your share of a lunch bill; paying the babysitter; within current online banking and bill pay applications. splitting the cost of an office colleague’s wedding present with a co-worker — these and other common scenarios of person-to-person (P2P) transactions are conducted P2P Awareness and Likely Adoption by the average U.S. consumer many times per year. Our research objective was to test consumer reaction to Historically, cash and checks have dominated as the P2P payment services offered within the online banking means of settlement for these types of transactions, and bill payment applications of their financial institutions but this is rapidly changing. Consumers have become (see Figure 1 for the visual depiction of the P2P concept as increasingly comfortable using electronic payments presented in the survey instrument). To bring the concept to replace paper payments for their monthly bills to life, we presented consumers with seven potential P2P and retail point-of-sale transactions. The transition use case scenarios. We then asked consumers to rate to using computers or mobile phones to perform their likelihood to use P2P payments in each case, as electronic P2P payments isn’t far behind. At least well as other questions about their current and potential that’s what many financial institutions and payments payment behavior. The following are key indicators technology vendors are planning for 2010, as they of P2P payment adoption potential that emerged: evaluate the business case for P2P payments, launch pilots, and roll out the offering to the marketplace. • Two-thirds (66%) of the surveyed consumers reported awareness of the ability to use P2P But what is the market demand for electronic P2P payments to transfer money electronically to another payments? What types of P2P transactions can individual, and 40% reported that they have financial institutions promote that will attract Figure 1: P2P Payment Concept consumers and drive adoption? Are consumers ready to initiate P2P Person to Person (P2P) Payment send money in 3 clicks or less payments through their financial institutions’ k clic k 1 clic ck online banking and 2 cli P2P Payment 3 bill payment services? Secure login Account #: P2P Payment Enter Amount P2P Payment P2P Payment $47 And what role does the PIN: To: 555-555-5555 Amount: $47 Con rmation! mobile phone play in Money P2P Payment Movement Payment login Account log-in Received! the P2P opportunity? $47 NACHA and eCom The sender enters One person The sender can use The sender logs in to The sender con rms The receiver gets Advisors partnered wants to send money to either a computer or her online banking the receiver’s the receiver’s info and a text or email mobile phone to send account by simply mobile # or email amount then hits message with FIS and PayPal to another a Person-to-Person entering her account # address and the ‘Send’ moments later and PIN amount telling her that address these and other payment – an electronic the money is in questions. Our national payment instead of cash or check her account research of 1,180 active No need to have receiver’s banking information No need to carry cash Instant payment online banking consumers Note: A variety of terms are used in this Research Brief to describe consumers’ positive responses to the P2P payment and ePayment Portal concepts. These terms include: like, will likely use, expressed interest, responded favorably, resonated and important. In all cases, the use of these terms relates to top 2 box results from five- and seven-point Likert scale questions where the top 2 box descrip- tors were probably/definitely, agree/strongly agree and important/very important.April 2010 2
  4. 4. Replacing Cash & Checks with P2P Money Movement About the Research This research was conducted by NACHA and • A quarter of consumers (27%) stated that eCom Advisors in partnership with FIS and PayPal. It is the ability to use their mobile phone to based on a 29-question online survey that was completed send P2P payments was important to them. by 1,180 U.S. consumers. The survey was elded by eCom Advisors on February 23 – 24, 2010 to a consumer panel maintained by Survey Sampling International. One • Nearly a quarter (23%) reported that they look hundred percent of the consumers who completed the forward to the day when they do not have to worry survey were active online banking users and 88% were about carrying cash because they can initiate P2P active online bill payment users (“active” de ned as usage payments with their mobile phones. within the past 30 days). The sample was purposely managed in this manner to gauge consumers’ receptivity to P2P payment services o ered within online banking These results demonstrate that unlike a decade ago, and bill payment applications. The estimated error rates when financial institutions made their initial foray into for this sample are +/-2.5% to +/- 3.1%. P2P payments, today a significant number of consumers are already comfortable with a broad range of electronic payments. In addition, while PayPal is currently primarily used for consumer-to-business transactions, used a P2P service to do this at one time or they already have 81 million active accounts worldwide. another. In addition, 41% reported using either This represents a ready base of P2P consumers for an online bill payment service or an online P2P a financial institution’s additional services. And nine payment service to send an electronic payment out of ten respondents (93%) in our survey reported directly to another individual within the past year. awareness of the PayPal brand name. So even before financial institutions have launched or promoted their • Nearly half (48%) of the consumers told us they would P2P offerings to the marketplace in a significant way, likely use P2P payments offered by their financial there is clearly a large pool of potential adopters. institution for at least one of the seven use case scenarios presented in the research questionnaire. While consumer awareness of P2P payments is One in five (21%) told us they would likely use substantial, and will certainly increase as financial P2P for a majority (at least four of the seven) of the scenarios (see Figure 2). Figure 2: Likelihood to Use P2P Payments • A third of consumers (33%) stated they would likely use 48% of consumers would likely use P2P in at least 1 of the 7 use case scenarios P2P payments offered by their 21% would likely use P2P in a majority (at least 4 of 7) of the scenarios financial institution to send money to a son or daughter 10% 1 of 7 at college. Almost as many 10% (31%) would likely use P2P to 2 of 7 send money out of the country to a family member, friend or 52% 48% 7% associate (see Cross-Border Not likely to Likely to use 3 of 7 use P2P P2P P2P Payments on page 5 for 7% 4 of 7 additional information on 6% this opportunity). A quarter 3% 5 of 7 (25%) would likely use P2P 5% 6 of 7 21% 7 of 7 to split the cost of a gift with co-workers, friends or family members (see Figure 3). Source: eCom Advisors and NACHA 3 April 2010
  5. 5. Replacing Cash & Checks with P2P Money Movement Figure 3: P2P Payment Use Cases Likelihood of consumers to use electronic P2P payments in the following situations Sending money to a son or daughter in college 36% 16% 16% 33% Sending money out of the country to a family 26% 25% 19% 31% member, friend, asscociate, etc. Splitting the cost of a gift (e.g. birthday gift, wedding 38% 12% 26% 25% gift, etc.) with co-workers, friends or family members Paying a friend back for your portion of a dinner bill 13% 42% 24% 22% (splitting the check at a restaurant) Splitting the mortgage or rent with your roommate, 31% 33% 17% 19% partner, or spouse Paying your babysitter, house sitter, dog walker 23% 41% 19% 18% gardener, house painter, etc. Purchasing items from a garage sale or ea market and paying the seller 13% 52% 19% 16% Does not apply De nitely/probably would not use Might or might not use De nitely/probably would use Source: eCom Advisors and NACHA institutions roll out their programs in the coming year, time) then you should take a pass on P2P until they can. there is still a critical need to overcome consumer inertia by providing clear and consistent messaging about the Additional actions required of financial institutions to simplicity and benefits of using P2P payments. The first increase consumer comfort with P2P payments include and most essential part of the simplicity message relates emphasizing the trusted brands behind the P2P service to product design, which must enable consumers to send and supporting the simplicity message by raising money in just a few clicks of their mouse or mobile phone awareness that a receiver’s email address or mobile (or approximately the same amount of time it takes phone number is all that is needed by the sender in to write a check or pull cash from one’s wallet). Eight order to complete P2P payments. Two-thirds (67%) out of ten consumers (82%) cited this ability to send a of consumers are aware of the old method requiring payment in just a few steps as an important requirement. the sender to have the receiver’s bank routing number and account number (a factor that certainly limits P2P The second element of the simplicity message must payments to only the most familiar and trusted of address the fact that the processing of the P2P individuals). A much lower percentage of consumers are transaction and the receipt of funds is now much faster. aware of the more recent and simpler alternative that The vast majority of consumers (82%) cited that getting only requires knowledge of the receiver’s email address the money to the receiver as quickly as possible was or mobile phone number (only 37% and 14% awareness, an important requirement. Financial institutions must respectively) to initiate a P2P payment. Financial enable P2P recipients to receive guaranteed funds institutions must enable consumers to initiate P2P payments electronically within a matter of moments. If your using the receiver’s email address or mobile phone technology vendor or in-house development team number and promote that capability to their customers. cannot meet these two critical requirements (sending money in just a few clicks with a mouse or mobile phone, One of the benefits most desired by consumers when and guaranteed funds received electronically in real conducting P2P payments is the ability to keep track ofApril 2010 4
  6. 6. Replacing Cash & Checks with P2P Money Movement Cross-Border P2P Payments The research NACHA and eCom Advisors currently dominated by rms such as Western conducted in partnership with FIS and PayPal Union and MoneyGram. demonstrates that consumers are very interested in using P2P payments to send money Providing a low-cost, easy-to-use alternative to internationally to a family member, friend or these money transfer organizations is necessary associate. Nearly a third (31%) of consumers said to shift market share to depository institutions. they would likely use Having the P2P P2P in this manner. function as part of Outlook for Global Remittance Flows the ePayment Portal The United Nations will not only allow Billion estimates that 191 $450 consumers this million immigrants low-cost easy-to-use worldwide send way to transfer money to family $400 money to family members who members in other remain in their home- countries, but it will $350 land. According to also provide them the the World Bank, tools to track, budget, global remittance $300 save and invest their ows will rebound money. from a 2009 recession-induced $250 Today it is not 2006 2007 2008 2009 2010e 2011e decline and grow by unusual for consum- Source: The World Bank 5% over the next two ers to go to their years to $441 billion bank’s ATM or into a by 2011. branch, withdraw cash, and walk across the street to a Western Union in order to transfer the U.S. banks currently only process about 3% of money out of the country. This should not be the the global remittance market, according to case in a world where P2P payments can already SWIFT estimates. The Bank of New York Mellon be sent to individuals in dozens of countries. estimates that only 10% of the remittance trans- Financial institutions should strongly consider actions from the U.S. are sent through banks. the P2P payment opportunity in order to There is clearly a signi cant opportunity for develop new revenue sources and attract new depository institutions in a market which is customers with cross-border payment needs. one’s transaction history (73% cited this as important). Integration with Bill Payment Consumers clearly like the idea that P2P payments might help them keep better track of what are currently cash Heightened industry interest in P2P payments has transactions. Consumers also desire the peace of mind of led a variety of financial institutions and payments having access to online records of larger P2P payments technology vendors to integrate P2P capabilities that replace check transactions (sending money to a into their online bill payment applications. The idea child in college, splitting the rent with a roommate, etc.). is that consumers will be more likely to use P2P This makes sense given the fact that a history of many if it is affiliated with their banking provider’s bill of their other transactions (bill payments and point-of- payment service rather than an independent service. sale transactions) has been available online for years. Our research examined consumer demand for this offering with a concept called an ePayment Portal.5 April 2010
  7. 7. Replacing Cash & Checks with P2P Money Movement In the survey, the ePayment Portal was positioned as a revealed financial institutions would be well-served to “money movement center — a service provided by your focus on four primary benefits. Always having online financial institution where you could manage all of your access to a complete record and history of payments electronic transactions from a single place online.” The of all types that run through the Portal was the benefit positioning made it clear that the Portal would allow deemed most important by consumers (81% rated consumers to transfer money, pay bills, send and receive it as important). Recall that this feature of record P2P payments and view and track all the movement keeping was also identified as an important benefit of their money (see Figure 4 for the visual depiction of the P2P payment service. In addition to record of the concept as presented in the survey instrument). keeping, other key benefits that resonated included: the ability to make all payments from one central Consumer reaction to the ePayment Portal concept was location; not having to write and mail checks for bill encouraging, with nearly half (49%) expressing interest pay or personal (P2P) payments; and reporting tools in the concept. Of these consumers who expressed to help them budget and spend within their means. interest, 70% would likely use the P2P portion of the Portal. In fact, out of eight payment features presented The use of incentives or rewards to drive adoption and in the Portal concept test, P2P was the third most popular, utilization of electronic payments such as debit cards behind making bill payments (88%) and making same- and online bill payment has been a common practice day emergency payments to avoid late fees (75%) (see for many years. Our research found that offering Figure 5). This is strong evidence that many consumers incentives/rewards for the ePayment Portal has the will react positively to offerings that integrate P2P potential to increase consumer interest. Recall that payments into a suite of money movement solutions 49% of consumers said they would likely use the Portal offered through an online bill payment application. without the mention of a reward. However, 69% of consumers stated they would be more likely to use the On the broader issue of driving consumer awareness Portal if their financial institution offered a reward. and adoption of the ePayment Portal, the research Consumers resoundingly identified cash back awards as the type they would find most valuable (75% Figure 4: ePayment Portal Concept selected this option). Many other types of Make Person-to-Person payments to family reward options were members, co-workers, babysitters, etc. Schedule bill presented to consumers: payments from checking accounts travel awards, loyalty or credit cards points redeemable for merchandise, preferred S Transfer money to an interest rates, reduced Pay anyone or send money anywhere in the account you have with a di erent nancial bank service charges, etc. Money Movement Account world, manage and view all of your institution All of these other reward log-in transactions in one place – all from the Check balances and types received ratings online money movement center! view payment history for all types of between 1% and 7%. payments Log on to your nancial institution’s money movement center from anywhere, using a Purchase and/or load money onto The overall attractiveness computer or mobile phone a gift card of the ePayment Portal concept is further illustrated by the fact that 19% of Receive electronic bills instead of paper all survey respondents statements (34% of the respondents who expressed interestApril 2010 6
  8. 8. Replacing Cash & Checks with P2P Money Movement Figure 5: Likelihood to Use ePayment Portal 49% of consumers would likely use the ePayment Portal Of those likely to use the Portal, 70% would likely use the P2P payment feature Likelihood to Use the ePayment Portal Of those likely to use the ePayment Portal, likelihood to use the following features De nitely Make a bill payment 88% De nitely use, not use, Make an emergency bill payment to 20% 10% Probably 75% avoid a late fee not use, 10% Send a P2P payment 70% Receive electronic bills instead of 66% paper statements Might or Transfer money to an account Probably use, might not use, 62% I have at a di erent FI 29% 31% Have a debit card charged for a P2P or bill 49% payment to earn debit card rewards Purchase and/or load value onto a gift card 45% Have a credit card charged for a P2P or bill payment instead of checking account 38% Source: eCom Advisors and NACHA in the Portal) indicated they would be willing to switch The Mobile Opportunity financial institutions to have the Portal. Additionally, the vast majority of these respondents who are willing to Early adopters of online banking and bill payment switch financial institutions said they were satisfied or encountered many challenges such as having to purchase very satisfied today with their current financial institution. software, frequent payment problems and security issues. Certainly, there is a significant difference between As these issues have been addressed, it has paved the expressing willingness to switch banking providers way for more recent technologies such as P2P and the in a survey instrument and really going through with ePayment Portal to gain market adoption at a faster it. However, longitudinal research by J.D. Power & rate. Consumers have become accustomed to electronic Associates reveals that 67% of consumers indicating payment services offered by their financial institutions, a strong willingness to switch retail banking providers and will view P2P as an extension of them. They will in survey-based research actually do end up switching not have the same security and technology concerns as within a year’s time. So if an institution (or institutions) the early adopters of online banking and bill payment. representing meaningful market share in your trade area launches an offering that resembles the Portal One of the clearest conclusions of our research is that and your institution does not, it is not unreasonable the first consumers to adopt P2P payments and the to assume that there could be a noticeable impact ePayment Portal will be those having the highest degree on attrition within your online banking client base. of comfort with the latest technologies and the greatest Conversely, by being an early mover on a Portal engagement in other forms of online financial services. concept, not only will you provide a valuable service This finding was resoundingly demonstrated when we that increases engagement with your current customers, analyzed the stated preferences of consumers who have you may capture new relationships from the competition. already adopted mobile banking and bill payment (see Figure 6). Many of the early P2P and Portal adopters 7 April 2010
  9. 9. Replacing Cash & Checks with P2P Money Movement will be Gen X and Y consumers, but demographics online bankers. Those who were active online bill pay alone are not the primary factors that will influence the customers via their mobile phones demonstrated even first movers. More than all other factors, utilization of higher interest in the concept tests — an average of mobile banking services is the most significant indicator 35 percentage points higher than mainstream online of likelihood to use P2P payments and the Portal. banking customers. The data clearly suggests that there needs to be strong linkage between a financial Quantities ranging from ~20% to ~50% of the 1,180 institution’s mobile banking services and their P2P surveyed consumers responded favorably to several of payments and Portal offerings. the P2P payment and ePayment Portal concept tests. However, adoption of mobile financial services was a clear differentiator. Consumers who were active Conclusion and Action Items online bankers via their mobile phones responded The next 12 to 24 months promise to be a breakthrough an average of 24 percentage points higher to the period for P2P payment pilots and rollouts by financial concept tests than the more traditional, computer-based institutions. Our research contains evidence of a Figure 6: Likelihood to Use P2P and Portal Relative to Current Online Behaviors Mobile customers are likely to be the early adopters Of Those Who Currently Use... Computer Mobile Phone Online Banking Bill Payment Online Banking Bill Payment Sending money to a son or daughter in college 33% 34% 55% 63% Sending money out of the country to a family member, friend, associate, etc. 31% 33% 55% 70% Splitting the cost of a gift (e.g. birthday gift, wedding gift, etc.) with co-workers, friends or family members 25% 27% 51% 63% Splitting the mortgage or rent with your roommate, partner, or spouse 22% 21% 46% 61% Paying a friend back for your portion of a dinner bill (splitting the check at a restaurant) 19% 19% 41% 51% Paying your babysitter, house sitter, dog walker, gardener, house painter, etc. 18% 23% 48% 61% Purchasing items from a garage sale or flea market and paying the seller 16% 17% 32% 44% Likelihood to Use the ePayment Portal: Likelihood to use the ePayment Portal 49% 53% 76% 83% Likelihood to access the ePayment Portal with your mobile phone 16% 25% 59% 74% Source: eCom Advisors and NACHAApril 2010 8
  10. 10. Replacing Cash & Checks with P2P Money Movement large pool of consumers already active in a range payment, and the ability to track transaction history. of online financial services that will strongly consider • Many of the consumers receptive to the P2P and adoption of the P2P payment and ePayment Portal the ePayment Portal concepts are Gen X and Y. concepts. As with the adoption of any innovation, Take advantage of social media to raise awareness consumers must be convinced that the innovation and encourage utilization within these segments. is better than the idea it supersedes. In the case of Leverage the viral aspects of P2P payments P2P, this means being better than cash and checks. to encourage customers to build payee lists. And as with the rollout of all new innovations in online financial services, clear communication of the benefits • Target and market to consumers who own the and delivering an excellent experience the first time latest mobile device technology, in particular a customer tries the new service will be essential. Smartphones and iPhones. Develop apps that enable transactions within 2 or 3 clicks and easy Based on our research, we recommend the following access to payee lists and transaction history. tactics for financial institutions to drive awareness and adoption of P2P payments and the ePayment Portal: • Offering rewards or incentives will not be essential to attracting the early adopters to P2P payments • Integrate P2P payments within your online banking and the ePayment Portal. However, the use of and bill payment applications and market the rewards/incentives (specifically cash back rewards) integration to the active users of these services. should be considered to encourage later adopters. Consumers are much more likely to adopt an innovative technology if it is integrated with a • While not specifically addressed in our research, technology they are already comfortable using. P2P payments and elements of the ePayment Portal can generate revenue for financial institutions. The • Integrate P2P payments and ePayment Portal use of P2P payments for cross-border remittances services with your mobile banking services. To the clearly indicates such an opportunity. Additionally, extent possible, incorporate them into your new 75% of the consumers who reacted favorably to the mobile banking rollouts. Portal concept placed high importance on the ability to make same-day emergency bill payments to avoid • Leverage brands that consumers trust in your a late charge. These and other opportunities to marketing efforts. 79% of consumers stated monetize these innovative payment services should that having a trusted brand associated be explored and factored in to business cases. with a P2P payment service is important. • Focus on driving P2P payment and ePayment Portal Primary customer segments that should adoption among today’s active mobile banking be targeted to adopt P2P payments and and bill pay consumers. These consumers are twice the ePayment Portal: as likely to adopt the P2P and Portal services as traditional online banking and bill payment • Active online banking customers consumers. As leading-edge technology adopters, • Active online bill payment customers they are also likely to be more forgiving of early • Those that actively use their mobile phone to rollout glitches than later adopters. Promote access their bank account online common use cases for mobile P2P to replace cash • Those that actively use their mobile phone to and check payments, as well as simplicity, speed of view or pay bills 9 April 2010
  11. 11. Replacing Cash & Checks with P2P Money Movement For more information contact: For more information contact: Marcia Danzeisen Paul McAdam 601 Riverside Avenue 5650 Blazer Parkway, Suite 100 Jacksonville, FL 32204 Dublin, OH 43017 904-854-5083 708-449-7743 Marcia.Danzeisen@fisglobal.com paul@ecomadvisors.com FIS delivers banking and payments technologies to eCom Advisors provides executive consulting and more than 14,000 financial institutions and businesses research services to banks, billers, vendors and investors in in over 100 countries worldwide. FIS provides financial financial services technology and online banking, billing institution core processing, and card issuer and transaction and payments. Our consultants possess 175+ years of processing services, including the NYCE® Network. FIS direct operating experience, and are considered leading maintains processing and technology relationships with experts in the industry. We help executives make their 40 of the top 50 global banks, including nine of the top 10. most crucial eCommerce management decisions. For FIS is a member of Standard and Poor’s (S&P) 500® Index more information, visit www.ecomadvisors.com. and consistently holds a leading ranking in the annual FinTech 100 rankings. Headquartered in Jacksonville, Florida., FIS employs more than 30,000 on a global basis. FIS is listed on the New York Stock Exchange under the “FIS” ticker symbol. For more information about FIS see www.fisglobal.com. For more information contact: For more information contact: Dan Schatt Colleen Morrison 2211 North First Street 13450 Sunrise Valley Drive, Suite 100 San Jose, CA 95131 Herndon, VA 20171 408-967-4443 703-561-3925 dschatt@paypal.com cmorrison@nacha.org PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without NACHA supports ACH Network growth by managing sharing financial information, with the flexibility to pay its development, administration, and governance. The using their account balances, bank accounts, credit cards Network facilitates global commerce as a safe, efficient, or promotional financing. With more than 81 million ubiquitous, and high-quality electronic payment active accounts in 190 markets and 24 currencies around system. NACHA represents 11,000 financial institutions the world, PayPal enables global ecommerce. PayPal through 18 regional payments associations and direct is an eBay company and is made up of three leading membership. To learn more, visit www.nacha.org, online payment services: the PayPal global payments www.electronicpayments.org and www.payitgreen.org. platform, the Payflow Gateway and Bill Me Later. Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002. More information about the company can be found at www.paypal.com.April 2010 10
  12. 12. © Copyright 2010, eCom Advisors and NACHAALL RIGHTS RESERVED. This report is licensed for use by FIS and PayPal. No part of this publication may bereproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, pho-tocopying, recording, or otherwise without the prior written permission of the publisher and copyright holder.Printed in the United States

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