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The news: Cash App rolled out an extra layer of protection for minors鈥� P2P payments, with automatic flagging for sponsors (parents or guardians) to approve risky requests. Our take: Attracting young users at the beginning of their financial lives can yield long-term loyalty to the app.

The P2P player was able to make this pivot thanks to the success of its integration in banks鈥� apps, which currently lead to 98% of its transactions

It鈥檚 a major win for the P2P player as the Trump administration dismantles the agency

Fraud concerns aren鈥檛 slowing down the P2P player as its growth outpaces peers

US P2P apps need to tap new uses and services to stay competitive, especially amid Zelle鈥檚 dominance. Here鈥檚 how each app sizes up and differentiates to attract younger generations.

Working with Visa will bring the future P2P platform added trust and security鈥攁s well as real-time payment capabilities

In the fourth of five reports in our 鈥淧ayments Ecosystem鈥� collection, we look at what鈥檚 influencing growth across P2P, remittance, bill pay, payroll, and B2B transactions鈥攁nd what it means for payment providers.

The enforcement action provides closure that could help boost the P2P app鈥檚 customer satisfaction in the long run

But the social media platform may struggle to get its users on board unless it can differentiate the P2P service from its peers

While the lawsuit may not go anywhere under Trump鈥檚 CFPB, the P2P platform鈥檚 continual fraud concerns may damage its reputation

P2P loans are gaining traction among US consumers and could benefit mortgage lenders. P2P loans are still nascent in the mortgage space. Few P2P lenders offer mortgages, and many consumers aren鈥檛 even aware they鈥檙e an option, per Private Capital Investors. But P2P is becoming increasingly prevalent in the wider US lending space, with revenues set to nearly double between 2020 and 2030, per IBISWorld.

The war is on to capture Gen Z鈥檚 P2P payment loyalty鈥攁nd Cash App has positioned itself better for the fight than ever before. We forecast that by 2029, 85.7% Gen Zers will be mobile wallet P2P payment users.

Payment volumes: Block processed $218 billion in P2P volume and $183 billion in commerce solutions for Cash App. Square鈥檚 GPV ($64.2 billion) jumped by 10%, with international payment accounting for 18% of the growth in Q2. Growth points: Block excelled this quarter at shipping new products quickly, rolling out Cash App Afterpay, and serving the younger generations鈥� financial needs through Cash App.

They win hot money with big savings yields and encourage frequent use by adding services like P2P payments and spending dashboards. Banks, meanwhile, are competing with each other for consumers鈥� highly fragmented banking relationships: Over half of consumers鈥� banking needs are met by providers other than their primary bank, per Accenture.

This is especially true for Venmo, which is fighting to shed its reputation as solely a P2P provider. Our take: For Taco Bell enthusiasts, 20% cash back every week may be too good of an offer to refuse.

This builds upon PayPal and Venmo鈥檚 P2P stablecoin-based checkout and P2P payment capabilities. World Network, OpenAI CEO Sam Altman鈥檚 crypto project, is reportedly in talks with Visa to launch a stablecoin payments wallet. This would build on Visa鈥檚 other ventures, like its forthcoming stablecoin platform, Visa Tokenized Asset Platform (VTAP), and its stablecoin settlement capabilities.

Venmo is marketing itself as a payment platform shoppers can use for 鈥渆verything鈥� as it tries to make the app more profitable by breaking out of the P2P box. Extending its volume opportunities through tuition, school purchases, and athletic events could build payment habits in young consumers that lead them to use PayPal more frequently through the rest of their lives.

The strategy: While Venmo is known as a peer-to-peer (P2P) payments provider, PayPal is continuing its long fight to make the app a full-service platform to improve its profitability. Letting users add the debit card to their mobile wallets will likely increase Venmo鈥檚 payment volume on everyday transactions, especially among digitally native Gen Zers who favor using mobile wallets for payments.

Block鈥檚 push to 鈥渂ank our base鈥� took time and resources away from growing that base, which is crucial for a P2P company鈥檚 success. Consumers won鈥檛 use a P2P platform if their friends and family members aren鈥檛 also using it. And growing adoption of its banking services may also be tough until it expands the products and services it offers.

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.