P2P ‘Huge Disappointment,’ but A2A Could Be Big, Malauzai Reports

Remote deposit capture and internal money transfers are growing, but P2P payments definitely aren’t, according to new statistics from Austin, Texas-based financial software company Malauzai.

Only about 12% of all banks and credit unions with mobile apps offer P2P payments in their apps, and just 1.2% of active digital banking users actually chose to make a P2P payment, according to data the company collected for September 2017 from over 435 banks and credit unions.

“Person-to-Person payments are a huge disappointment,” Malauzai said in its “Monkey Insights” report published Wednesday. “This makes P2P a low-volume task coming in number 11 in the list of most-used digital banking features. Lots of hype and no results. Zelle, real-time, etc., none of it changes these metrics. The Venmo phenomenon continues to confound us bankers, as clearly it is growing, even if its average transfer value is sub $30. Different type of P2P but way more successful.”

Credit union members and other financial institution customers nonetheless still find value in mobile banking, according to the data. The average smartphone user logged into mobile banking 18 times a month and spent a minute and a half per session; desktop logins, on the other hand, were less than half of that at just 8.5 times on average for the month, though those users stayed on for just over five minutes. Members used “quick-balance” features, which let members see balances without performing a traditional login, 37 times on average during the month.

Internal transfers (bill pay, remote deposit capture, P2P and account-to-account) were 70% of all consumer money-movement digital transactions, according to the data. On average, desktop users moved $1,674 each time, which is large compared to iPhone users, who moved just $512 on average.

“Average transfer value for large format (tablets and desktop) is huge!” Malauzai reported. “This is…

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