Driven by time savings and ease of use, Gen X, Boomers and Seniors are increasingly adopting P2P payments on their smartphone.
In 20 years, will cash and personal, hand-written bank checks be age-old relics as quaint as the VCR, answering machine or 8-track tape? Growing consumer adoption of person-to-person (P2P) payments suggests this could be the case.
P2P payments allow users to send money to family, friends and even the local dog walker—fast and easy using their smartphone. It’s faster than writing a check and involves less hassle than going to the ATM for cash.
Recent data shows that a majority of adopters use P2P to reimburse family and friends for restaurant bills, vacation costs and other shared expenses.1 But there is also an increasing use of P2P to pay for local services such as the babysitter, landscaper, house cleaner or other local services.
According to a 2016 report from the Pew Research Center, 32% of Millennials (age 18-30) are using P2P payments, along with 25% of Generation X (age 31-44). Although only 5% of seniors (age 66 and up) and 17% of Baby Boomers (age 45-65) are currently using P2P payments, according to eMarketer's latest mobile banking and payments forecast, use of person-to-person payment apps among all age ranges will grow by double digits through 2021.1
Tom Duffy, Head of Banking Services for Morgan Stanley Wealth Management, believes the firm's Wealth Management clients will be part of that growth. “Our clients are always looking for new ways to integrate cash management services seamlessly into their lives. We’ve partnered with Zelle® to bring clients a new way to conveniently send and receive money fast, right from the Morgan Stanley Mobile App.”
Morgan Stanley's Send Money with Zelle is the latest addition to the Morgan Stanley Mobile App which already offers numerous features, including easy log-in with Touch ID, and instant access to your investment portfolio. The app also allows you to pay bills, deposit checks, and transfer funds, all with your mobile device.
Although time savings is the most popular reason for the increasing adoption, ease of use is another benefit. To use Zelle in the Morgan Stanley Mobile App, you just need the email address or U.S. mobile number of the person you are paying.* To make it even easier, the app can also access your contacts in your smartphone.
Once you enter the amount you are sending and complete the transaction, money is debited from your account just like a check withdrawal or debit card payment. The recipient then receives a notification explaining how to complete the transaction simply and quickly. After a recipient is enrolled with Zelle, their payments are typically received within minutes, for an even easier transaction.
“It all comes down to convenience and speed. It’s certainly a lot easier than writing out a check, finding a stamp, envelope and having to take a trip to the post office," adds Duffy.
For more information about Morgan Stanley's Send Money with Zelle, contact your Morgan Stanley Financial Advisor or visit the product website.