Mobile proximity and peer-to-peer (P2P) payments have hit the mainstream, thanks to a pandemic-driven upswing in digital payments that is set to last. This trend is leading providers to diversify their offerings and compete for share of the market.

The top 10 P2P payment apps worldwide

The PayPal-owned P2P payments player will soon introduce new fees and privacy updates that should bring it one step closer to profitability and might make its platform more trustworthy.

Wealthsimple has secured $559M in funding at a $3.7B valuation thanks to the success of its retail trading and new crypto and P2P money transfer products. The Canadian fintech should now roll out customized portfolio options to double down on growth.

This comfort could make customers more likely to try mobile P2P, benefiting the Canadian P2P market overall. Rising Time Spent on Smartphones Could Drive Users to Mobile P2P. In Canada, nonvoice time spent on mobile devices is climbing, which should shift some financial services behavior—like banking and payments—from computers to smartphones.

Factors Shaping P2P Mobile Payment Usage. Shifts Away From Cash Favor Mobile P2P Over Time. As consumers continue to move away from cash and checks, digital P2P will be the natural choice to complete the same activities, and we’re already seeing evidence that they’re doing this.

And it also gives the company a bigger market share in the US P2P payments space, which is expected to hit a value of $785.19 billion by the end of 2021, per our forecasts. Related content: Check out the Mobile P2P Payment Spending section of our “US Mobile Payments Forecast 2021” report to learn about how the industry is shifting.

China P2P Mobile Payments. The number of P2P mobile payments users in China will tick up at a 2.1% CAGR through 2025. Penetration will hit two-thirds of the population—and 9 in 10 smartphone users—by the end of our forecast period and almost exactly match mobile proximity penetration thanks to the duopoly.

In 2023, more than $1 trillion will transact via mobile P2P apps