P2P: The Disruptive Potential; New tools and technologies are changing the face of domestic and international payments

Pages: 31 Published: March 01, 2016 Report Code: VF0009IA

Face-to-face P2P is currently dominated by paper instruments, with cash accounting for 49.9% of all low-value P2P transactions. Denmark is the only market in which cash was not the most popular tool for low-value P2P transactions, with mobile apps – specifically MobilePay – being the most popular choice Higher-value P2P transactions are heavily dominated by bank transfers, proving that banks are currently in a strong position to serve their customers through P2P services.


This report examines the global P2P market, considering the traditional tools available to consumers in domestic, social P2P payment interactions as well as international money transfers and remittances. The domestic and remittance markets are considered separately in this brief as there are still large differences between the demands of each market and, as a result, the best strategies to adopt in each. Analyzes the major tools in use in domestic P2P and the reasons why these tools are popular.

• Identifies key advances in P2P products over the last few years and their impact on the domestic and remittance markets.

• Considers the position of the traditional incumbents in each market and how well placed they are to avoid disruption by fintech start-ups.

• Explores the potentially winning strategies that can be adopted by players currently in the P2P market and players looking to enter it.

Reasons to Buy

Understand the dynamics of the domestic P2P market –which tools are used for what type of transactions

Find out what makes a P2P tool successful both from data and in-depth product analysis.

Learn how the domestic and international P2P markets are being disrupted, and what strategies will be most successful going forward.

Discover how new technologies can best be leveraged in the P2P market.

Key Players

Danske Bank
Chase Bank
Wells Fargo
The Clearing House
Western Union

Table of Contents


P2P is a wide and complex area of payments

Key findings

Critical success factors


P2P transactions fall into several overlapping categories

Digital technologies are blurring the boundaries and renewing interest in the P2P space

Proximity P2P is dominated by paper instruments – for now

Cash is universal and untraceable, but holds hidden costs

Cheques are gradually being phased out in developed markets

Remote P2P payment providers face numerous challenges


Domestic P2P providers are focusing on convenient user experiences

Danske Bank's MobilePay is the P2P method of choice in Denmark

Bank transfers are increasingly being used to power new P2P services

Domestic remote P2P tools are increasingly focused on social media channels

Social media firms such as Face book are creating their own P2P services

PayPal.Me integrates P2P directly into social communication channels

Large, trusted third-party brands can leverage their existing scale effectively

Players without large systems already in place will struggle to build from scratch

Money agents such as Western Union are the biggest remittance players

These large firms are threatened by disruption at the fringes, due to their high fees

Cash-in, cash-out transfers are a key advantage for money transfer agents

Traditional P2P methods such as Hawala remain common in many markets

Hawala networks will remain a competitive threat

Newer remote players use technology and marketing to undercut the incumbents

Bitcoin and blockchain technology enable cheap transfers due to low costs

TransferWise uses software to reduce costs on international bank transfers


Cash is ultimately the biggest competitor for domestic P2P services

To compete with cash, P2P tools must be as convenient and easy to use as possible

Regulation remains a huge challenge for would-be remittance disruptors

New technologies can challenge remittance incumbents, but only at the fringes

It will be difficult for challengers to build scale to take the place of the big players


Abbreviations and acronyms



Digital currency

Digital wallet

P2P payments


Verdict Financial's annual Global Consumer Insight Surveys

Secondary research


Further reading

About Verdict Financial


List of Tables


List of Figures

Figure 1: Cash accounts for just under half of all minimal-value P2P transfers globally

Figure 2: Almost two thirds of consumers who use cash for P2P transactions do so because using cash is easy

Figure 3: Mobile phone transfers are the most popular method of making low-value P2P payments in Denmark

Figure 4: Cheques are the most popular tool for high-value P2P transfers in the US

Figure 5: As of September 2015 MobilePay was registered on two in three smartphones in Denmark

Figure 6: Facebook is enabling P2P transactions via its Messenger app

Figure 7: Yandex offers a wide range of options for P2P transfers

Figure 8: Bitcoin has a low cost as "miners" are rewarded for processing transactions

Figure 9: TransferWise focuses on presenting an image of honesty and transparency


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