Person to Person Payments

How Peer-To-Peer Payments Services Are Improving The Way We Pay

By: Jaiveer Singh Twitter : @singhjaiveer Blogs : www. jaiveersingh.com

P2P Payments

Traditional Methods of P2P Payments

Cash

Check

Bank Transfers

P2P Payments Market & Use Cases

• Global P2P market is over $1 trillion

• Mobile P2P Payments are growing and replacing traditional ways such as Cash, Check and Bank Transfers

Source: BI Intelligence Report

Household / Family • Pocket Money Transfers • House rent to landlord • Tuition Fee • Childcare • House/ Garden Maintenance • Gifts on Birthdays/ Festivals • Pay for used goods purchases • Reimbursing security deposits

Friends/ Acquaintances/ Community • Roommates sharing room rent • Split Bills for

• Taxi Rides • Dinner/ Drinks • Entertainment Events • Group Travels/ Sports

• Group Savings • Pooling money for a cause • Pay for used goods purchases • Gifts on Birthdays/ Festivals • Personal borrowing/ repayments

Changing consumer behavior in the digital age

The three waves of the digital age, leading to consumer power

• Increased Mobile Phones affordability • Increased access of internet & lowering costs of data plans • Increased adoption of social media (FB, Whatsapp, WeChat, Twitter)

Current trends suggest that mobile social users in APAC will exceed 1 billion by Q4 2015.

Source : IAB, Singapore

Digital in Asia Pacific, Mar 2015

Few Leading P2P Service Providers

P2P Payments Impact & Opportunity for Banks

Opportunity for Banks

• Avoid erosion of Brand equity and customer loyalty to other players

• Mitigate migration of balances and banks fees from traditional accounts to stored value mobile wallets.

• The “always on” and “always with me” mobile consumer behaviors enable Banks to maintain constant customer interactions & visibility into consumer needs.

• New acquisition tools through increased access to consumers – new to credit or unbanked.

• P2P payment brings more consumers to Banks mobile platforms for value added services such as • Products cross sell • mCommerce (in-App purchases) • mCoupons/ Loyalty points • Mobile Ads/ Partners Deals

• P2P payments are helping nation to move towards cashless society. • P2P Payments convenience changing consumers behavior & expectations from Banks.

India Market – Key Developments

• Major initiatives rolled out to increase Financial Inclusion cover under Vision 2022.

• 11 new payment banks license to promote payment access & convenience

• Mobile Wallets surpassed credit cards volumes in country.

• All leading banks & mobile wallets providing P2P payment service (SBI, ICICI, HDFC, Axis Bank)

• P2P Payments service promoting cashless society and supporting economic growth further.

Few Key Players (Banks & Non Banks providing P2P Payments Services via popular channels in India.

Startups building solutions for FI may get in touch for mentoring/ advisor support at

Email: LetsTalk@JaiveerSingh.com

Jaiveer Singh • Senior IT Leader with global

experience • Fintech Mentor & Connector • Financial Inclusion Advocate • Blockchain Technology Fanatic

• Previously served GE Capital, Axis

Capital, Orix Finance, ICICI Bank, Shinsei Bank, Deutsche Bank