Use of P2P mobile payment apps, such as PayPal and Venmo, vary significantly by generation, according to a new survey from The Manifest.
29% of millennial’s (18 to 34 years old) regularly use P2P mobile payment apps to pay for food and drinks, compared to approximately 10% of older generations. Baby boomers (55 years and older) more frequently use P2P mobile payment apps to pay for physical items, such as clothing and furniture.
The survey found over half (51%) of millennials regularly use P2P mobile payment apps for purchases overall, compared to 48% of Gen Xers (approximately 35 to 55 years old).
PayPal Reigns, Though Definitions May Be Confused
PayPal is the most regularly used P2P mobile payment app for nearly 75% of users surveyed.
Although PayPal is widely used, experts suggest its popularity in a P2P payment app survey may be the result of confusion by those surveyed over what “peer-to-peer” means.
“You can use PayPal to pay for things all over the internet or at businesses,” said Zack Drew, head of business development at Blue Label Labs, an app design, development, and marketing agency. “I wouldn’t consider all of that peer-to-peer. I don’t know anybody who uses PayPal peer-to-peer like that.”
PayPal is better known for its online business transactions, compared to its subsidiary P2P payment brand, Venmo, which ranked second in popularity (14%) in the survey. Both apps offer convenience and flexibility for payments.
“A mobile peer-to-peer payment app is easier than using a credit card, especially for group purchases,” Drew said.
The Manifest surveyed 511 US smartphone owners to determine trends among popular app categories including social media apps and food delivery and restaurant loyalty apps. The latest survey focused exclusively on P2P mobile payment apps. Overall, the survey found that nearly half (46%) of smartphone owners regularly use P2P mobile payment apps.
The data suggest that P2P mobile payment apps influence how and when people, particularly millennials, expect payments. When sending money is as easy as clicking a button on your smartphone, people may be less likely to cover a coffee or meal with the expectation that “it will even out in the end.”
Read the full report HERE