P2P Payments Bring Convenience and Flexibility to Retail

Peer-to-peer (P2P) payments are revolutionizing the retail landscape, with major players ranging from Starbucks to eBay embracing these convenient and flexible payment options. The May edition of the PYMNTS Intelligence Real-Time Payments Tracker® Series Report, “P2P Payment Potential: Promoting Convenience While Protecting Consumers,” highlights how apps like PayPal, Zelle, Cash App, and Venmo are transforming consumer transactions.

“In the United States, 51% of consumers use P2P payments, as do 52% of residents in the United Kingdom,” the report notes. These payments, commonly associated with person-to-person transactions, are now used for small retailer purchases, utility bills, and rent payments.

At least 50% of millennial and Generation Z consumers report using P2P payments for both digital and in-store purchases, according to the PYMNTS Intelligence “Money Mobility Tracker®: Peer Pressure: Balancing Convenience With Compliance in P2P Payments.” Retail giants like Walmart, Target, and eCommerce platforms eBay and Etsy accept PayPal, while Starbucks’ rewards app accepts Venmo and PayPal.

P2P payments cut out the need for credit cards, broadening the potential customer base. They offer quick, easy fund transfers and integrate seamlessly with mobile devices and other financial services. Matt Freeman of Navy Federal Credit Union notes that bank-owned P2P providers like Zelle simplify transactions, avoiding fees and delays.