Malauzai Software, a leader in mobile and internet banking, today released its monthly Monkey Insights “little-data” report, the report where an overwhelming amount of big data surrounding Mobile Banking and Internet Banking is broken up into digestible analytic “factoids” called little data. The report highlights key trends in internet and mobile banking usage based on July 2017 data for 435+ banks & credit unions, covering 13.9 million logins from 805,000 active Internet and Mobile Banking users.
This month, we look at Person-to-Person payments. And Venmo, the king of P2P. We combined our usage data on P2P with survey data we compiled over the summer from about 400 people. We don’t claim complete statistical soundness, but the survey data on Venmo usage is indicative, none the less.
- Bank P2P = 3%, $450 and 2x. Bank P2P, which appears in Mobile Banking apps or on desktop Internet Banking sites, is not a highly used feature. About 3% of active Virtual Banking users choose to use P2P. The average value of a transfer is $450 and the user does approximately 2 transactions per month. Email is used 65% of the time over text to notify the person receiving funds. Mobile usage is double what it is on the desktop, so mobile works better for P2P.
- Venmo Average Value = $25, Bank P2P = $450. Bank P2P and Venmo are used for different things. 75% of Venmo transfers according to the survey are under $50. Bank P2P average is $450, so 9x greater. It seems obvious. Bank P2P handles large values like splitting rent and Venmo handles smaller transactions, like a bar bill or splitting movie tickets. The P2P services are solving very different problems.
- 50% Leave Money On Venmo. Do people care about real-time transfers? Seems NOT! More than 50% of Venmo users leave the money at Venmo. They don’t ever transfer the money to a bank or a card. Venmo therefore, in these scenarios is real-time. They leave it in Venmo to pay other Venmo users. The industry has been hyper-focused on settling P2P in real-time across all financial institutions, think Zelle. This might not be. That important to the end-user. That said, real-time does have a place, especially around the smaller value transactions where Venmo seems to play well.
- Venmo Users Were 20-30. Older people use a variety of other P2P services with PayPal being the top choice outside of Venmo. And there is very little Venmo usage under 18. Seems once kids go off to college or join the working world, Venmo becomes important but before, there is almost no usage below 18 yrs old. Big users are between 18-32. Millenials. And the common theme is community. These folks belonged to a community, like a college campus or a social group, and every one used Venmo.
- The basics on Venmo are as follows. 75% of the transactions are under $50, the average is $25. 55% of those surveyed had used Venmo or installed the app (average age of survey participant was 28 so it skewed towards younger folks). 50% of those surveyed left the money in Venmo versus transferring it to a bank or card or another mechanism for “materializing” the cash. And many people had no idea the money was not being “settled” in real-time. Venmo felt like real-time.
- 100% Growth in Bank P2P! In spite of all the data, bank P2P grows. Person-to-Person payments took off this year. 100% more financial institutions added P2P. There are now 771 who offer it in some form or another in their Mobile Banking app or Internet Banking site.
Conclusion? Unclear. Venmo is used for smaller transactions, and these add up as they are experiencing huge growth. Bank P2P languishes. Real-time capabilities such as Zelle might help. And Venmo seems to revolve around community, not real-time. People like posting emojis and reading about other peoples’ transfers (25% look at the Venmo data feed showing what the community is up to in terms of money movements). We will continue to watch as Bank P2P grows and expands.
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