Replacing Cash & Checks with P2P Money Movement

Replacing Cash & Checks with P2P Money Movement

Research Brief April 2010

AbstractThis research was designed to understand online banking consumers’ reactions to two new product concepts. The first concept is using P2P payment services offered by a financial institution. Nearly half of those surveyed (48%) would likely use this type of P2P solution.

The second concept is using an ePayment Portal — a service provided by a financial institution which allows consumers to transfer money, pay bills, send and receive P2P payments, and track all their mon-ey movement from a single place online. Nearly half (49%) expressed interest in the Portal. Of this interested population, 70% would likely use the P2P payment services within the Portal.

Integration with mobile banking services will be key to driving consumer adoption of these two new product concepts. Today’s active mobile banking consumers are twice as likely to use P2P payments and the Portal as purely computer-based online banking and bill payment consumers.

Executive Summary 1Introduction 2P2P Awareness and Likely Adoption 2Cross-Border P2P Payments 5Integration with Bill Payment 5The Mobile Opportunity 7Conclusion and Action Items 8About the Research Partners 10

Table of Contents

1 April 2010

Nearly half (48%) of consumers surveyed expressed interest in using P2P payments offered by their financial institution. When asked about the scenarios in which they would use P2P, a third (33%) of consumers said they would likely use it to send money to a child at college. Almost as many (31%) said they would send money to an individual out of the country. A quarter (25%) would likely use P2P to split the cost of a gift with other people.

Product functionality and marketing messages that support simplicity, payment speed and record keeping are essential to driving consumer interest. The ability to send money in just a few simple steps and an assurance that the recipient will quickly receive guaranteed funds are key requirements (82% of consumers cited both as important). 86% of consumers feel the ability to keep track of their transaction records is important.

Many consumers will react positively to P2P payments that are built in to a suite of online bill payment and money movement solutions. Nearly half (49%) of consumers expressed interest in the concept of an ePayment Portal — an online solution that would allow consumers to transfer money, pay bills, send and receive P2P payments, and view and track the movement of their money. And of those who expressed interest in the Portal, 70% would likely use the P2P portion of the Portal. In fact, out of eight payment features presented in the Portal concept test, P2P was the third most popular, behind making bill payments (88%) and making same-day emergency payments to avoid late fees (75%). The attractiveness of the Portal concept is validated by the fact that 34% of the consumers who expressed interest stated they would be willing to switch financial institutions in order to obtain the Portal service.

Record keeping, convenience and reporting tools are primary benefits that will encourage ePayment Portal adoption. 81% of consumers cited access to a complete record and history of payments of all types that run through the Portal as being important. Other benefits that resonate with the vast majority of consumers include: the ability to make all payments and transactions from one central online location; not having to write and mail checks for bill pay or personal (P2P) payments; and reporting tools to help them budget and spend within their means.

The utilization of incentives or rewards will enhance consumer interest in the ePayment Portal. 69% of consumers would be likely to use the Portal if offered an incentive by the financial institution (compared to 49% without an incentive). Consumers resoundingly identified cash back awards as the most valuable form of incentive (75% selected this option).

Integrating P2P payments and ePayment Portal services with mobile banking services and promoting the services to existing mobile adopters are key. More than all other factors, current utilization of mobile banking services is the most significant indicator of likelihood to use P2P payments and the Portal. Today’s active mobile banking consumers are twice as likely to use P2P payments and the Portal as purely computer-based online banking and bill payment consumers.

Unlike a decade ago, when financial institutions made their initial foray into P2P payments, today there is a significant base of consumers who are comfortable with electronic payments. 40% of the surveyed consumers stated that they have already used a P2P payments service to send money to another individual at one time or another, and 93% reported awareness of the PayPal brand name. In addition, while PayPal is currently primarily used for consumer-to-business transactions, they already have 81 million active accounts worldwide. This represents a ready base of P2P consumers for a financial institution’s additional services.

The next 12 to 24 months promise to be an active period of P2P payment services explora-tion, pilots and rollouts by �nancial institutions. Our recent national research of active online banking consumers reveals considerable opportunity for P2P payments to replace check and cash transactions — particularly if P2P is o�ered inside online banking and bill pay applications.

Executive Summary

April 2010


2

Introduction

Sending money to a child at college; paying a friend back for your share of a lunch bill; paying the babysitter; splitting the cost of an office colleague’s wedding present with a co-worker — these and other common scenarios of person-to-person (P2P) transactions are conducted by the average U.S. consumer many times per year.

Historically, cash and checks have dominated as the means of settlement for these types of transactions, but this is rapidly changing. Consumers have become increasingly comfortable using electronic payments to replace paper payments for their monthly bills and retail point-of-sale transactions. The transition to using computers or mobile phones to perform electronic P2P payments isn’t far behind. At least that’s what many financial institutions and payments technology vendors are planning for 2010, as they evaluate the business case for P2P payments, launch pilots, and roll out the offering to the marketplace.

But what is the market demand for electronic P2P payments? What types of P2P transactions can financial institutions promote that will attract consumers and drive adoption? Are consumers ready to initiate P2P payments through their financial institutions’ online banking and bill payment services? And what role does the mobile phone play in the P2P opportunity?

NACHA and eCom Advisors partnered with FIS and PayPal to address these and other questions. Our national research of 1,180 active online banking consumers

completed in February 2010 found there is attractive potential for P2P payments offered by financial institutions to replace paper payments, especially if P2P is offered within current online banking and bill pay applications.

P2P Awareness and Likely Adoption

Our research objective was to test consumer reaction to P2P payment services offered within the online banking and bill payment applications of their financial institutions (see Figure 1 for the visual depiction of the P2P concept as presented in the survey instrument). To bring the concept to life, we presented consumers with seven potential P2P use case scenarios. We then asked consumers to rate their likelihood to use P2P payments in each case, as well as other questions about their current and potential payment behavior. The following are key indicators of P2P payment adoption potential that emerged:

Two-thirds (66%) of the surveyed consumers • reported awareness of the ability to use P2P payments to transfer money electronically to another individual, and 40% reported that they have

Note: A variety of terms are used in this Research Brief to describe consumers’ positive responses to the P2P payment and ePayment Portal concepts. These terms include: like, will likely use, expressed interest, responded favorably, resonated and important. In all cases, the use of these terms relates to top 2 box results from five- and seven-point Likert scale questions where the top 2 box descrip-tors were probably/definitely, agree/strongly agree and important/very important.

P2P Payment

Con�rmation!Payment Received!

$47

Account #:

PIN:

Secure loginP2P Payment

Person to Person (P2P) Payment send money in 3 clicks or less

One person wants to send

money to another

The sender can use either a computer or

mobile phone to send a Person-to-Person

payment – an electronic

payment instead of cash or check

The sender logs in to her online banking account by simply

entering her account # and PIN

The sender enters the receiver’s

mobile # or email address and the

amount

The sender con�rms the receiver’s info and

amount then hits ‘Send’

The receiver gets a text or email

message moments later telling her that the money is in

her account

click

1 click

2 click

3

No need to carry cashNo need to have receiver’s banking information

Instant payment

Money Movement

Accountlog-in

P2P Payment

login

To: 555-555-5555

Amount: $47

P2P Payment$47

Enter AmountP2P Payment

Figure 1: P2P Payment Concept

3 April 2010


used a P2P service to do this at one time or another. In addition, 41% reported using either an online bill payment service or an online P2P payment service to send an electronic payment directly to another individual within the past year.

Nearly half (48%) of the consumers told us they would • likely use P2P payments offered by their financial institution for at least one of the seven use case scenarios presented in the research questionnaire. One in five (21%) told us they would likely use P2P for a majority (at least four of the seven) of the scenarios (see Figure 2).

A third of consumers (33%) • stated they would likely use P2P payments offered by their financial institution to send money to a son or daughter at college. Almost as many (31%) would likely use P2P to send money out of the country to a family member, friend or associate (see Cross-Border P2P Payments on page 5 for additional information on this opportunity). A quarter (25%) would likely use P2P to split the cost of a gift with co-workers, friends or family members (see Figure 3).

A quarter of consumers (27%) stated that • the ability to use their mobile phone to send P2P payments was important to them.

Nearly a quarter (23%) reported that they look • forward to the day when they do not have to worry about carrying cash because they can initiate P2P payments with their mobile phones.

These results demonstrate that unlike a decade ago, when financial institutions made their initial foray into P2P payments, today a significant number of consumers are already comfortable with a broad range of electronic payments. In addition, while PayPal is currently primarily used for consumer-to-business transactions, they already have 81 million active accounts worldwide. This represents a ready base of P2P consumers for a financial institution’s additional services. And nine out of ten respondents (93%) in our survey reported awareness of the PayPal brand name. So even before financial institutions have launched or promoted their P2P offerings to the marketplace in a significant way, there is clearly a large pool of potential adopters.

While consumer awareness of P2P payments is substantial, and will certainly increase as financial

About the ResearchThis research was conducted by NACHA and

eCom Advisors in partnership with FIS and PayPal. It is based on a 29-question online survey that was completed by 1,180 U.S. consumers. The survey was �elded by eCom Advisors on February 23 – 24, 2010 to a consumer panel maintained by Survey Sampling International. One hundred percent of the consumers who completed the survey were active online banking users and 88% were active online bill payment users (“active” de�ned as usage within the past 30 days). The sample was purposely managed in this manner to gauge consumers’ receptivity to P2P payment services o�ered within online banking and bill payment applications. The estimated error rates

for this sample are +/-2.5% to +/- 3.1%.

48%Likely to use

P2P

52%Not likely to

use P2P

10%1 of 7

10%2 of 7

7%3 of 7

7%4 of 7

6%5 of 73%

6 of 75%7 of 7

21%

48% of consumers would likely use P2P in at least 1 of the 7 use case scenarios 21% would likely use P2P in a majority (at least 4 of 7) of the scenarios

Source: eCom Advisors and NACHA

Figure 2: Likelihood to Use P2P Payments

4April 2010


institutions roll out their programs in the coming year, there is still a critical need to overcome consumer inertia by providing clear and consistent messaging about the simplicity and benefits of using P2P payments. The first and most essential part of the simplicity message relates to product design, which must enable consumers to send money in just a few clicks of their mouse or mobile phone (or approximately the same amount of time it takes to write a check or pull cash from one’s wallet). Eight out of ten consumers (82%) cited this ability to send a payment in just a few steps as an important requirement.

The second element of the simplicity message must address the fact that the processing of the P2P transaction and the receipt of funds is now much faster. The vast majority of consumers (82%) cited that getting the money to the receiver as quickly as possible was an important requirement. Financial institutions must enable P2P recipients to receive guaranteed funds electronically within a matter of moments. If your technology vendor or in-house development team cannot meet these two critical requirements (sending money in just a few clicks with a mouse or mobile phone, and guaranteed funds received electronically in real

time) then you should take a pass on P2P until they can.

Additional actions required of financial institutions to increase consumer comfort with P2P payments include emphasizing the trusted brands behind the P2P service and supporting the simplicity message by raising awareness that a receiver’s email address or mobile phone number is all that is needed by the sender in order to complete P2P payments. Two-thirds (67%) of consumers are aware of the old method requiring the sender to have the receiver’s bank routing number and account number (a factor that certainly limits P2P payments to only the most familiar and trusted of individuals). A much lower percentage of consumers are aware of the more recent and simpler alternative that only requires knowledge of the receiver’s email address or mobile phone number (only 37% and 14% awareness, respectively) to initiate a P2P payment. Financial institutions must enable consumers to initiate P2P payments using the receiver’s email address or mobile phone number and promote that capability to their customers.

One of the benefits most desired by consumers when conducting P2P payments is the ability to keep track of

Sending money to a son or daughter in college

Sending money out of the country to a family member, friend, asscociate, etc.

Splitting the cost of a gift (e.g. birthday gift, wedding gift, etc.) with co-workers, friends or family members

Paying a friend back for your portion of a dinner bill (splitting the check at a restaurant)

Splitting the mortgage or rent with your roommate, partner, or spouse

Paying your babysitter, house sitter, dog walker gardener, house painter, etc.

Purchasing items from a garage sale or �ea market and paying the seller


36%

25%

12%

13%

31%

23%

13%

16%

26%

38%

42%

33%

41%

52%

16%

19%

26%

24%

17%

19%

19%

33%

31%

25%

22%

19%

18%

16%

Does not apply De�nitely/probably would not use Might or might not use De�nitely/probably would use

Likelihood of consumers to use electronic P2P payments in the following situations

Figure 3: P2P Payment Use Cases

5 April 2010


one’s transaction history (73% cited this as important). Consumers clearly like the idea that P2P payments might help them keep better track of what are currently cash transactions. Consumers also desire the peace of mind of having access to online records of larger P2P payments that replace check transactions (sending money to a child in college, splitting the rent with a roommate, etc.). This makes sense given the fact that a history of many of their other transactions (bill payments and point-of-sale transactions) has been available online for years.

Integration with Bill Payment

Heightened industry interest in P2P payments has led a variety of financial institutions and payments technology vendors to integrate P2P capabilities into their online bill payment applications. The idea is that consumers will be more likely to use P2P if it is affiliated with their banking provider’s bill payment service rather than an independent service. Our research examined consumer demand for this offering with a concept called an ePayment Portal.

The research NACHA and eCom Advisors conducted in partnership with FIS and PayPal demonstrates that consumers are very interested in using P2P payments to send money internationally to a family member, friend or associate. Nearly a third (31%) of consumers said they would likely use P2P in this manner.

The United Nations estimates that 191 million immigrants worldwide send money to family members who remain in their home-land. According to the World Bank, global remittance �ows will rebound from a 2009 recession-induced decline and grow by 5% over the next two years to $441 billion by 2011.

U.S. banks currently only process about 3% of the global remittance market, according to SWIFT estimates. The Bank of New York Mellon estimates that only 10% of the remittance trans-actions from the U.S. are sent through banks. There is clearly a signi�cant opportunity for depository institutions in a market which is

Cross-Border P2P Paymentscurrently dominated by �rms such as Western Union and MoneyGram.

Providing a low-cost, easy-to-use alternative to these money transfer organizations is necessary to shift market share to depository institutions.

Having the P2P function as part of the ePayment Portal will not only allow consumers this low-cost easy-to-use way to transfer money to family members in other countries, but it will also provide them the tools to track, budget, save and invest their money.

Today it is not unusual for consum-ers to go to their bank’s ATM or into a

branch, withdraw cash, and walk across the street to a Western Union in order to transfer the money out of the country. This should not be the case in a world where P2P payments can already be sent to individuals in dozens of countries. Financial institutions should strongly consider the P2P payment opportunity in order to develop new revenue sources and attract new customers with cross-border payment needs.

Outlook for Global Remittance Flows

$450

$400

$350

$300

$250

Billion

2006 2007 2008 2009 2010e 2011e

Source: The World Bank

6

Money Movement

Accountlog-in

Receive electronic bills instead of paper

statements

Transfer money to an account you have with

a di�erent �nancial institution

Schedule bill payments from

checking accounts or credit cards

Check balances and view payment history

for all types of payments

Make Person-to-Person payments to family

members, co-workers, babysitters, etc.

Purchase and/or load money onto

a gift card

Log on to your �nancial institution’s money movement center from anywhere, using a

computer or mobile phone

SPay anyone or send money anywhere in the

world, manage and view all of your

transactions in one place – all from the

online money movement center!

Figure 4: ePayment Portal Concept

April 2010


In the survey, the ePayment Portal was positioned as a “money movement center — a service provided by your financial institution where you could manage all of your electronic transactions from a single place online.” The positioning made it clear that the Portal would allow consumers to transfer money, pay bills, send and receive P2P payments and view and track all the movement of their money (see Figure 4 for the visual depiction of the concept as presented in the survey instrument).

Consumer reaction to the ePayment Portal concept was encouraging, with nearly half (49%) expressing interest in the concept. Of these consumers who expressed interest, 70% would likely use the P2P portion of the Portal. In fact, out of eight payment features presented in the Portal concept test, P2P was the third most popular, behind making bill payments (88%) and making same-day emergency payments to avoid late fees (75%) (see Figure 5). This is strong evidence that many consumers will react positively to offerings that integrate P2P payments into a suite of money movement solutions offered through an online bill payment application.

On the broader issue of driving consumer awareness and adoption of the ePayment Portal, the research

revealed financial institutions would be well-served to focus on four primary benefits. Always having online access to a complete record and history of payments of all types that run through the Portal was the benefit deemed most important by consumers (81% rated it as important). Recall that this feature of record keeping was also identified as an important benefit of the P2P payment service. In addition to record keeping, other key benefits that resonated included: the ability to make all payments from one central location; not having to write and mail checks for bill pay or personal (P2P) payments; and reporting tools to help them budget and spend within their means.

The use of incentives or rewards to drive adoption and utilization of electronic payments such as debit cards and online bill payment has been a common practice for many years. Our research found that offering incentives/rewards for the ePayment Portal has the potential to increase consumer interest. Recall that 49% of consumers said they would likely use the Portal without the mention of a reward. However, 69% of consumers stated they would be more likely to use the Portal if their financial institution offered a reward. Consumers resoundingly identified cash back awards

as the type they would find most valuable (75% selected this option). Many other types of reward options were presented to consumers: travel awards, loyalty points redeemable for merchandise, preferred interest rates, reduced bank service charges, etc. All of these other reward types received ratings between 1% and 7%.

The overall attractiveness of the ePayment Portal concept is further illustrated by the fact that 19% of all survey respondents (34% of the respondents who expressed interest

7 April 2010


in the Portal) indicated they would be willing to switch financial institutions to have the Portal. Additionally, the vast majority of these respondents who are willing to switch financial institutions said they were satisfied or very satisfied today with their current financial institution. Certainly, there is a significant difference between expressing willingness to switch banking providers in a survey instrument and really going through with it. However, longitudinal research by J.D. Power & Associates reveals that 67% of consumers indicating a strong willingness to switch retail banking providers in survey-based research actually do end up switching within a year’s time. So if an institution (or institutions) representing meaningful market share in your trade area launches an offering that resembles the Portal and your institution does not, it is not unreasonable to assume that there could be a noticeable impact on attrition within your online banking client base. Conversely, by being an early mover on a Portal concept, not only will you provide a valuable service that increases engagement with your current customers, you may capture new relationships from the competition.

The Mobile Opportunity

Early adopters of online banking and bill payment encountered many challenges such as having to purchase software, frequent payment problems and security issues. As these issues have been addressed, it has paved the way for more recent technologies such as P2P and the ePayment Portal to gain market adoption at a faster rate. Consumers have become accustomed to electronic payment services offered by their financial institutions, and will view P2P as an extension of them. They will not have the same security and technology concerns as the early adopters of online banking and bill payment.

One of the clearest conclusions of our research is that the first consumers to adopt P2P payments and the ePayment Portal will be those having the highest degree of comfort with the latest technologies and the greatest engagement in other forms of online financial services. This finding was resoundingly demonstrated when we analyzed the stated preferences of consumers who have already adopted mobile banking and bill payment (see Figure 6). Many of the early P2P and Portal adopters

Probably use,29%

De�nitely use,20%

De�nitely not use,

10%

Might or might not use,

31%

Probably not use, 10%

Likelihood to Use the ePayment Portal Of those likely to use the ePayment Portal,likelihood to use the following features

88%

75%

70%

66%

62%

49%

45%

38%

Make a bill payment

Make an emergency bill payment to avoid a late fee

Send a P2P payment

Receive electronic bills instead of paper statements

Transfer money to an account I have at a di�erent FI

Have a debit card charged for a P2P or bill payment to earn debit card rewards

Purchase and/or load value onto a gift card

Have a credit card charged for a P2P or bill payment instead of checking account


49% of consumers would likely use the ePayment Portal Of those likely to use the Portal, 70% would likely use the P2P payment feature

Figure 5: Likelihood to Use ePayment Portal

8

Of Those Who Currently Use...

Computer Mobile Phone

Online Banking Bill Payment Online Banking Bill Payment

Sending money to a son or daughter in college 33% 34% 55% 63%

Sending money out of the country to a family member, friend, associate, etc. 31% 33% 55% 70%

Splitting the cost of a gift (e.g. birthday gift, wedding gift, etc.) with co-workers, friends or family members 25% 27% 51% 63%

Splitting the mortgage or rent with your roommate, partner, or spouse 22% 21% 46% 61%

Paying a friend back for your portion of a dinner bill (splitting the check at a restaurant) 19% 19% 41% 51%

Paying your babysitter, house sitter, dog walker, gardener, house painter, etc. 18% 23% 48% 61%

Purchasing items from a garage sale or flea market and paying the seller 16% 17% 32% 44%

Likelihood to Use the ePayment Portal:

Likelihood to use the ePayment Portal 49% 53% 76% 83%

Likelihood to access the ePayment Portal with your mobile phone 16% 25% 59% 74%

Figure 6: Likelihood to Use P2P and Portal Relative to Current Online Behaviors


Mobile customers are likely to be the early adopters

April 2010


will be Gen X and Y consumers, but demographics alone are not the primary factors that will influence the first movers. More than all other factors, utilization of mobile banking services is the most significant indicator of likelihood to use P2P payments and the Portal. Quantities ranging from ~20% to ~50% of the 1,180 surveyed consumers responded favorably to several of the P2P payment and ePayment Portal concept tests. However, adoption of mobile financial services was a clear differentiator. Consumers who were active online bankers via their mobile phones responded an average of 24 percentage points higher to the concept tests than the more traditional, computer-based

online bankers. Those who were active online bill pay customers via their mobile phones demonstrated even higher interest in the concept tests — an average of 35 percentage points higher than mainstream online banking customers. The data clearly suggests that there needs to be strong linkage between a financial institution’s mobile banking services and their P2P payments and Portal offerings.

Conclusion and Action Items

The next 12 to 24 months promise to be a breakthrough period for P2P payment pilots and rollouts by financial institutions. Our research contains evidence of a

9 April 2010


payment, and the ability to track transaction history.Many of the consumers receptive to the P2P and • the ePayment Portal concepts are Gen X and Y. Take advantage of social media to raise awareness and encourage utilization within these segments. Leverage the viral aspects of P2P payments to encourage customers to build payee lists.

Target and market to consumers who own the • latest mobile device technology, in particular Smartphones and iPhones. Develop apps that enable transactions within 2 or 3 clicks and easy access to payee lists and transaction history. Offering rewards or incentives will not be essential • to attracting the early adopters to P2P payments and the ePayment Portal. However, the use of rewards/incentives (specifically cash back rewards) should be considered to encourage later adopters.

While not specifically addressed in our research, • P2P payments and elements of the ePayment Portal can generate revenue for financial institutions. The use of P2P payments for cross-border remittances clearly indicates such an opportunity. Additionally, 75% of the consumers who reacted favorably to the Portal concept placed high importance on the ability to make same-day emergency bill payments to avoid a late charge. These and other opportunities to monetize these innovative payment services should be explored and factored in to business cases.

large pool of consumers already active in a range of online financial services that will strongly consider adoption of the P2P payment and ePayment Portal concepts. As with the adoption of any innovation, consumers must be convinced that the innovation is better than the idea it supersedes. In the case of P2P, this means being better than cash and checks. And as with the rollout of all new innovations in online financial services, clear communication of the benefits and delivering an excellent experience the first time a customer tries the new service will be essential.

Based on our research, we recommend the following tactics for financial institutions to drive awareness and adoption of P2P payments and the ePayment Portal:

Integrate P2P payments within your online banking • and bill payment applications and market the integration to the active users of these services. Consumers are much more likely to adopt an innovative technology if it is integrated with a technology they are already comfortable using.

Integrate P2P payments and ePayment Portal • services with your mobile banking services. To the extent possible, incorporate them into your new mobile banking rollouts.

Leverage brands that consumers trust in your • marketing efforts. 79% of consumers stated that having a trusted brand associated with a P2P payment service is important.

Focus on driving P2P payment and ePayment Portal • adoption among today’s active mobile banking and bill pay consumers. These consumers are twice as likely to adopt the P2P and Portal services as traditional online banking and bill payment consumers. As leading-edge technology adopters, they are also likely to be more forgiving of early rollout glitches than later adopters. Promote common use cases for mobile P2P to replace cash and check payments, as well as simplicity, speed of

Primary customer segments that should be targeted to adopt P2P payments and

the ePayment Portal:

• Active online banking customers• Active online bill payment customers• Those that actively use their mobile phone to access their bank account online• Those that actively use their mobile phone to view or pay bills

10April 2010


For more information contact:

Dan Schatt2211 North First StreetSan Jose, CA [email protected]

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 81 million active accounts in 190 markets and 24 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company and is made up of three leading online payment services: the PayPal global payments platform, the Payflow Gateway and Bill Me Later. Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002. More information about the company can be found at www.paypal.com.


Marcia Danzeisen601 Riverside AvenueJacksonville, FL [email protected]

FIS delivers banking and payments technologies to more than 14,000 financial institutions and businesses in over 100 countries worldwide. FIS provides financial institution core processing, and card issuer and transaction processing services, including the NYCE® Network. FIS maintains processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. FIS is a member of Standard and Poor’s (S&P) 500® Index and consistently holds a leading ranking in the annual FinTech 100 rankings. Headquartered in Jacksonville, Florida., FIS employs more than 30,000 on a global basis. FIS is listed on the New York Stock Exchange under the “FIS” ticker symbol. For more information about FIS see www.fisglobal.com.


Colleen Morrison13450 Sunrise Valley Drive, Suite 100Herndon, VA [email protected]

NACHA supports ACH Network growth by managing its development, administration, and governance. The Network facilitates global commerce as a safe, efficient, ubiquitous, and high-quality electronic payment system. NACHA represents 11,000 financial institutions through 18 regional payments associations and direct membership. To learn more, visit www.nacha.org, www.electronicpayments.org and www.payitgreen.org.


Paul McAdam5650 Blazer Parkway, Suite 100Dublin, OH [email protected]

eCom Advisors provides executive consulting and research services to banks, billers, vendors and investors in financial services technology and online banking, billing and payments. Our consultants possess 175+ years of direct operating experience, and are considered leading experts in the industry. We help executives make their most crucial eCommerce management decisions. For more information, visit www.ecomadvisors.com.

© Copyright 2010, eCom Advisors and NACHA

ALL RIGHTS RESERVED. This report is licensed for use by FIS and PayPal. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, pho-tocopying, recording, or otherwise without the prior written permission of the publisher and copyright holder.

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Economy & Finance

Replacing Cash & Checks with P2P Money Movement