Peer-to-peer or person-to-person (P2P) payments are a staple feature in consumer banking. As transactions become digitized and cashless, clients expect banks to offer P2P payment platforms that are simple and deliver a seamless transaction experience. Silicon Valley has led innovation in the P2P payment space, with PayPal and Venmo (also owned by PayPal) grabbing significant market share from traditional financial institutions. This is a result of these firms marrying intuitive interface design with customer-centric P2P features and fast, free transactions.
This report analyzes the desktop P2P payments platforms offered by leading banks as well as market leaders PayPal and Venmo. Our reviews focus on key components of the P2P user experience including interface design, P2P payment options, delivery speeds and fees. The majority of bank P2P platforms reviewed in this report offer easy-to-use interfaces and quality payment customization features such as future scheduling and recurring payments. Delivery times and payment limits were largely stagnant since the last report on this topic in October 2015. However, two firms eliminated domestic P2P payment fees during this time. Requesting money, a popular feature on Venmo and PayPal, continues to be underutilized on bank P2P platforms and is offered by only seven (54% of) Bank Monitor firms in this report.