By Kate Young
If you think person-to-person payments apps belong to the realm of millennials and Generation Z, you’re only half-right.
According to a recent study by Early Warning Services, the network operator for the bank-backed P2P solution Zelle, 50 percent of first-time P2P users are aged 45 or older. The study, which surveyed more than 1,500 U.S. consumers in the fourth quarter of 2018, uncovered a growing confidence in payments solutions among the older generations. In fact, 52 percent of Generation X respondents and 46 percent of baby boomers said they “trust” P2P payments—and are interested in using available solutions.
What’s at play? When survey respondents were asked for their reasons behind trying a P2P solution, 76 percent of Gen Xers and 74 percent of boomers ranked “offered through a financial institution they trust” as a top reason.
“Consumers above the age of 45 are overcoming their skepticism of P2P,” said Ravi Loganathan, chief data officer at Early Warning. “Generation X and boomers have a high degree of trust in their financial institutions. The increase in trial can be attributed to solutions—such as Zelle—being included within the banking apps these consumers are comfortable using.”
Early Warning reports that customers at more than 5,100 financial institutions now use Zelle for P2P, either through their mobile banking app or by enrolling their debit cards in the Zelle mobile app. Approximately 79 financial institutions currently offer Zelle through their banking apps, and another 271 institutions are under contract.