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Two payment systems now settle these bank-to-bank transactions for peer-to-peer (P2P) transactions, disbursements, and more. But hurdles remain before real-time payments enter the mainstream. Key Question: What are real-time payments, and how will they impact consumer payments growth?

Keep an eye on Gen Z鈥檚 P2P payment usage and VR adoption. Gen Z peer-to-peer (P2P) payment usage is rising quickly as the generation becomes more independent and engages more in commerce. Our forecast indicates that 61.3% of Gen Z smartphone users use P2P payment platforms, increasing to 83.0% in 2028鈥攋ust 1 percentage point behind millennials.

While this base uses Venmo mostly for peer-to-peer (P2P) purchases, the app is quickly growing its buy button鈥檚 base: The number of monthly active Pay with Venmo users shot up 20% YoY in Q3. Adding Venmo as a payment option can boost JetBlue鈥檚 appeal among younger consumers: 45% of millennials and 42% of Gen Zers use Venmo, per a March 2023 survey from The Motley Fool.

Mobile P2P payments are reaching market maturity in the US as spending soars, but security challenges threaten to reverse gains. Providers are working to assuage consumer fears while adding a robust array of features to tighten user relationships.

But Gen Z has also embraced Zelle, as the bank-owned app keeps building a bigger share of peer-to-peer (P2P) transaction value and usage. Gen Z will also propel in-store mobile wallet usage. The number of Gen Z mobile proximity payment users will rise from 32.8 million in 2024 to 50.0 million in 2028, per our forecast鈥攚hich will represent 37.7% of overall users.

Respondents cited the most interest in faster payments for peer-to-peer (P2P) and bill payments. Interest in faster payments is also exploding for business-to-business (B2B) payments. Real-time payments support between 60% and 70% of domestic B2B transactions in the US, according to Melio.

Customers can use the stablecoin for P2P payments between PayPal, Venmo, and third-party wallets and for fee-free remittances via Xoom. While PayPal has not released any of its own data on the stablecoin, so far, adoption seems to be minimal. PYUSD鈥檚 market cap is $503.23 million, per CoinMarketCap, making it the seventh-largest stablecoin.

In addition to offering peer-to-peer (P2P) payments, Visa CEO Ryan McInerney also said the solution will help X creators get paid faster. The companies are also working on other use cases. What鈥檚 next? Visa is preparing to launch account-to-account (A2A) payments in Europe early this year. The initial use case is bill pay, but it will expand to other payment types in the future, McInerney said.

Consumer device and behavior trends are affecting payment providers鈥� strategies across retail, P2P, B2B, disbursement, and cross-border channels. Here鈥檚 what that means for the payments ecosystem.

The number of mobile peer-to-peer (P2P) payment users in the US is growing, reaching nearly three quarters (74.4%) of US smartphone users by 2028, per our forecast.

The P2P payments space is deeply entrenched by competitors that have large networks of loyal users

The digital wallet is already the top P2P service among teens. Its youth-facing products could help monetize the app

US mobile peer-to-peer (P2P) payments have reached a critical mass, and spending is surging鈥攂ut the media鈥檚 spotlight on fraud has stoked consumer concerns, threatening user and spending growth. In 2023, providers will tackle the security issue head-on as they aim to become consumers鈥� primary wallet.

Visa+ will connect Venmo and PayPal before expanding to other wallets. Here's what it means for P2P apps.