p2p payments are mainstream now

Texting Money Isn't Just a Millennials’ Thing

The ability to communicate with anyone, anywhere and anytime is now starting to be possible in the financial world as well and people are truly loving it.

The European Union is preparing its citizens for texting money: a new standard, called SEPA credit transfer (SCT) scheme, or SCT inst for short, will become active in all member states by November 2017. It will enable direct person-to-person (P2P) money transfers, or Instant Payments, as the European Central Bank calls them, in less than 20 seconds anywhere in the EU, for any amount from up to 15.000 Euro.

Instant Payments will be available to consumers, businesses and payment providers. ECB expects that this will foster adoption of cashless payments because Instant Payment will enable not only lending money among friends but a new kind of cashless payments as well.

According to a survey conducted by the Bank of America, 62% of Millennials are now using Instant Payments. But the service is gaining substantial traction in all other age groups: almost half of non-users expressed direct interest to become users in the next 12 months.

In the US, banks are pushing Instant Payments as a way to compete with internet players and are recording great success, with 30% new users saying that they have started using Instant Payments because of new offers from banks.