Fintech
47% of FinTechs enable sending P2P payments
FinTechs must make money mobility a top priority if they want to lure consumers away from traditional banks. While PYMNTS Intelligence data confirms that FinTechs have made progress in meeting consumer expectations for instant payments, there is still room for improvement.
In “FinTech instant payments mismatch”, a collaboration with Incoming paymentsWe found that 47% of FinTechs allowed consumers to send peer-to-peer (P2P) transfers, while 41% allowed them to receive such transfers: increases of 10 percentage points for sending and 9 percentage points for reception between the third quarter of 2022 and the second quarter of 2023. .
This progression is great news for FinTechs because data shows that P2P transfers rank as the number one service consumers expect when using a FinTech provider. However, the report, based on surveys of nearly 2,300 U.S. consumers and 150 FinTech issuers, also found that FinTechs would benefit from better aligning their services with their customers’ needs.
While consumers are more likely to use FinTech providers that offer a wide range of fund transfer options and fast transactions, FinTechs focus on convenience and customer experience as their key features. This could create problems if FinTechs do not change course.
That’s not to say FinTechs aren’t making progress. As the chart below illustrates, FinTechs have adjusted the menu of services they provide based on what their customers use.
As mentioned, 47% of FinTechs allow you to send P2P payments and 41% allow you to receive them. Since these features are top priorities for consumers, it’s understandable that 51% of consumers are now sending P2P payments while 44% are receiving them.
Instead, FinTech issuers have been scaling back services that their customers don’t use. For example, 2.5% of consumers said they had used FinTech financial advice. This could explain the decrease from 48% in Q3 2022 to 41% in Q2 2023 in FinTechs offering this service.
The data confirms that FinTech issuers are focusing on meeting consumer demand. Despite the progress, providers seem to misunderstand what consumers really want. PYMNTS Intelligence found that not only do consumers want access to a wide variety of payment options, but they also expect ready availability of good funds. Yet many FinTechs continue to tout convenience and customer experience as differentiators.
FinTechs that correct these missteps and better align their features with what their customers are actually looking for will most likely be the ones to continue to gain traction in the market.
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