An analysis of the growth of online P2P payments, the problems and opportunities faced by payment providers, and the future of electronic consumer-to-consumer payments. By Tim McHugh, senior research analyst, Emerging Payments Studies Department, the Federal Reserve Bank of Chicago.
Credit cards, debit cards, and ACH have increased the share of electronic payments both at point-of-sale locations and for bill payments. Although the adoption of electronic payments in the consumer-to-consumer payments setting has lagged behind these other areas, online person-to-person payment systems have recently been reporting strong growth.
This article tests the hypothesis that online P2P payments represents a potential vehicle through which paper-based C2C payments can be reduced. It reviews the emergence of online P2P payments, their structure, business models, and factors contributing to their success.» Download the document now 56Kb PDF