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 mobile peer-to-peer (P2P) space has grown in popularity over the years, thanks in large part to three key players that are propelling immense growth in both users and payment transaction value.

B2B, C2C, and B2C payments all stand to gain from shorter settlement times, which offer greater financial flexibility and control. Faster payments’ speed also provides valuable transparency for firms, which benefit from the certainty of immediate payment.

Though still in the early stages of rollout, 5G technology could bring about positive changes to the retail industry, as retailers seek to maintain their digital transformation efforts and bring consumers safely back into stores in 2021. Retailers will use their IT investments in 5G to enhance the customer experience, both in-store and online.

Our first forecast for peer-to-peer (P2P) mobile payments users in Canada shows a still-developing market with plenty of room to grow. This year, 19.7% of the country's population (or 6.0 million people) will be P2P mobile payment users. But that significantly trails the US market, where 30.6% of the population uses P2P payments.

In a marketplace crowded with competition, ride-hailing pioneer Uber still dominates the US transportation-sharing economy. But as the first mover's growth slows, its main competitor Lyft will increasingly claim market share.

eMarketer junior forecasting analyst Brian Lau shares our estimates for peer-to-peer mobile transactions and usage in the US, as well as why apps like Venmo and Zelle are strong market players.

Peer-to-peer (P2P) payments are increasing significantly in the US, driven by tremendous growth from Venmo and Zelle. eMarketer’s latest estimates show that P2P mobile transactions will total $309.95 billion this year, growing 27.9% to hit $396.48 billion in 2020.

The global payment market will hit a major milestone in 2020: 1.06 billion people are expected to make a proximity mobile payment. But even as countries like China and Sweden take steps toward a cashless society, most of the world will still rely on cash and cards.

This report features our latest forecasts for proximity mobile payment users in Latin America, with breakouts for Argentina, Brazil and Mexico. It also examines emerging trends and key drivers fueling regional market movements.

Mobile payments have been thought to be on the cusp of widespread adoption for several years now. But most consumers have responded to the technology with a noncommittal shrug.

Of the 938.2 million proximity mobile payment users worldwide, over two-thirds reside in China and India. Consumer adoption is still in its early days for most markets, but there will be fast growth in retailer support and usage over the next few years.

Adoption of proximity mobile payments in the US continues to grow, but at an increasingly tepid pace. They’ve yet to unseat credit cards as the payment option of choice. Meanwhile, peer-to-peer (P2P) payment adoption is driven by platforms like Venmo and Zelle.