PYMNTS Intelligence: Convenience Is King in Money Mobility

Frictionless money-out capabilities and seamless authentication are top priorities for consumers.

Payments have grown more digital than ever in recent years. Customers have switched from cash and checks to online banking, contactless payments and peer-to-peer (P2P) payment apps in record numbers, with the latter proving especially popular among younger generations. Ninety-one percent of millennials and Generation Z consumers said they have used apps such as CashApp, Venmo and Zelle to pay friends and businesses, with 44% saying they do so at least once a week. 

Seamlessness and convenience are the top priorities for customers when it comes to these digital payments. Instant payments are now table stakes, and customers are looking for services that offer scheduling, customization and a lack of obtrusive authentication requirements when making their payment decisions. While FinTechs and banks are eager to provide this, they are challenged by the need for payments verification and fraud prevention. 

This month, PYMNTS examines what customers are looking for in money mobility and how banks, FinTechs and other companies can effectively meet these demands.

What Customers Look For In Money Mobility

The rise of digital wallets and P2P apps has made customers prioritize convenience in money mobility more than ever before. Nowhere is this more evident than during user authentication, a necessary step that many consumers find exasperating. More than half of Americans said they would switch brands if their identity verification was too slow, and more than two-thirds would go to a different provider altogether if they were not satisfied with the authentication experience. Their standards are quite exacting: 45% of respondents said that onboarding should take less than 30 seconds, and 64% said that verification via their phone is more convenient than typing in a password. 

Customers also desire innovative technology to aid them in their money mobility. Voice technology to control financial accounts is an excellent example of this technological demand, especially among younger generations. Almost two-thirds of millennials said they wanted to use voice commands to move money whenever they wanted — up from 35% in 2020 — along with 64% of bridge millennials and 45% of Generation Z. 

FinTechs and banks looking to provide this lightning-fast verification must cope with the realities of cybercrime, however. Fifty-four percent of P2P platforms have dealt with false identities created through their authentication systems, according to PYMNTS’ research. Striking a balance between the need for ironclad security and customer seamlessness will be a key priority for businesses moving forward. Many companies are deploying biometrics or behavioral analytics to authenticate customers behind the scenes with minimal active input that affects the customer experience.

P2P payments’ compatibility has proven a valuable tool for many retailers to improve their customers’ money mobility without added verification friction. Eighty-two percent of small- to medium-sized businesses (SMBs) in the United States said they accept at least one P2P payment option at the point of sale, according to a survey, and 92% of them reported satisfaction with the payment experience. This is likely due to the user verification occurring on the app rather than at the point of sale, driving a seamless customer interaction uninterrupted by entering a password or PIN. 

P2P payments are one of many tools satisfying customers’ demands for seamless money mobility. Financial institutions (FIs), FinTechs and other businesses will need to deploy all those at their disposal to ensure customer satisfaction.