Americans Look to P2P Platforms for Business Refunds
Peer-to-peer platforms, such as PayPal and Zelle, have become increasingly popular over the years. While the name suggests that these platforms are purely for ‘peers’ to use, many businesses have tapped into the technology for their own purposes.
According to a new MetaBank study, 24% of consumers would prefer P2P payments for business refunds, as opposed to traditional methods of reimbursements. PayPal was the most popular P2P provider chosen.
Shifting to digital refunds could save businesses money in the long run. Of the $2 billion business-to-consumer payments made each year, approximately half are distributed through paper checks. According to one study, checks cost as much as $3.15 each. Nearly one-third of consumers (31%) said they would be less likely do business with a company that made payments by check.
Consumers like P2P payments because of their convenience and quick access to funds. However, businesses often pay fees to utilize these services. To offset the costs, businesses could upcharge for P2P payments. According to the study, 24% of Americans said they would “pay a small fee to receive rebates, refunds or credits within minutes of providing their debit card information.”
The study showed consumers much preferred businesses with fast payment processing: 39% said they would be willing to work with a business that offered refunds and rebates within days, but that jumped to 47% when those options were available in minutes.