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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

Why it matters: Splitting payments is one of the main use cases for peer-to-peer (P2P) payments. 蘑菇AV one in five (19%) of Gen Z consumers in the UK and 12.5% of UK millennials routinely turn to digital wallets for bill payments, per a July 2024 PYMNTS Intelligence survey. Other P2P payment providers have also been pushing innovation for this use case.

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

Since then, the payment provider has launched a stablecoin and enabled crypto-based P2P payments. The bigger picture: The crypto market had been riding a high since President Trump was elected in November on the hope that expected regulatory clarity (and friendliness) would boost consumer investment and provider buy-in.

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.

In the fourth of five reports in our 鈥淧补测尘别苍迟蝉 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.

And it鈥檚 not the only mobile wallet to launch kid- and teen-oriented payment features. Apple Cash Family lets parents load money into their children鈥檚 accounts and limit who they can send money to. Apple Card also has a family feature. Cash App lets teens make P2P payments and apply for its debit card with parental supervision. And Venmo鈥檚 Teen Account comes with a linked debit card.

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.

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.

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

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.

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.

Holiday spend, international transactions, and non-card payments boosted growth

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

Payment provider innovation and regulatory changes are setting a long-term growth runway for cryptocurrency payments. But providers will still need to overcome low merchant acceptance and a sense of mistrust before crypto can go mainstream.