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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.

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.

The news: Cash App launched 鈥減ools鈥濃�攁 feature to make group payments frictionless鈥攖o a limited number of US-based users with plans for a later wider rollout, per a press release. Our take: Cash App wants to cement itself among Gen Z users, households making up to $150,000 annually, and the populations traditionally overlooked by legacy financial institutions.

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.

Tariff uncertainty, billion-dollar merger and acquisition deals, and a jump in social commerce will create new dynamics in the payments industry in H2 2025. Burgeoning tech like agentic AI and stablecoins will further shake up the space.

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.

Internal upheaval and delays have stymied X鈥檚 payments ambitions, but new beta tests could get the app back on track.

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.

As consumers made more payments than ever in 2023, new trends are emerging

Mobile P2P payments are struggling to capture users in Canada. But banks and digital wallet providers can lean into their respective strengths to create a rosier outlook for growth.

UK mobile P2P payments usage growth has a case of the doldrums鈥攂ut bank and digital wallet providers can explore several options to give it a boost.

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

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.

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.