Something unusual is happening in financial markets and it could mean more gains lie ahead for stocks, if history is any indication.Marketsread more
Tesla is working on new battery cell designs, and a way to make their own cells, with R&D teams in a lab near its car plant in Fremont, California.Technologyread more
Underneath the impressive market rally is a trend that doesn't seem quite right, according to J.P. Morgan.Marketsread more
Ten 2020 Democratic presidential candidates will take the debate stage Wednesday at the Adrienne Arsht Center for the Performing Arts in Miami.2020 Electionsread more
See which stocks are posting big moves after the bell on June 26.Market Insiderread more
These attacks have given the public the opportunity to examine the problems associated with ransomware, where corporations -- not obligated to disclose these attacks -- have...Technologyread more
JP Morgan's Jamie Dimon says student lending "is a disgrace and it's hurting America."Economyread more
Online home goods retailer Wayfair sold roughly 1,600 mattresses and 100 bunk beds to Baptist Child and Family Services, a nonprofit that works as a federal contractor...Retailread more
Bitcoin jumped to its highest price since January 2018 on Wednesday.Bitcoinread more
In a strategy to draw attention away from Wednesday's Democratic debate, President Donald Trump's reelection campaign bought out YouTube's "masthead," the leading...2020 Electionsread more
The Federal Reserve and the market are miles apart on interest rate expectations, and the disparity could cost the stock market a 7%-10% drop, economists say.Economyread more
You know a platform or tech is successful when it becomes a verb. A payments app owned by PayPal joined the ranks of Google and FedEx (at least in verbal usage) a few years ago when millennials began "Venmo-ing" each other to settle bar tabs.
One reason for its success: Zelle is not only a standalone app, like Venmo. In addition, it integrates with a user’s existing banking app.
People tend to trust financial institutions, making mobile payments more attractive to older generations, according to Zelle, which recently studied how different age groups behave and think about P2P apps.
Zelle questioned more than 9,000 U.S. mobile-savvy millennials, Gen Xers and boomers who own smartphones, are aware of P2P and have used online or mobile banking.
“What stood out is the openness among older generations to start actively incorporating P2P services into their day-to-day banking habits,” said Ravi Loganathan, head of digital strategy and operations at Early Warning, Zelle’s network operator.
Since security is a top issue for Gen X and boomers, removing that barrier opened the door to many more users.
The generations still approach P2P differently. Here’s what you may or may not know about P2P and millennials, Gen X and boomers.
Restaurant checks and bar tabs are still popular. But that’s not all.
“Millennials use mobile payment options for everything,” said Alicia McElhaney, founder of She Spends, a website and newsletter to help women close gaps in wages, investing and board seats.
If you split rent and utilities, Venmo, Zelle and similar platforms are useful for paying your half of the bill. Those expenses can really mount up, especially in cities where the cost of living is high. “Millennials also use these payment platforms to split vacation costs, whether for rentals, plane tickets or food,” McElhaney said.
P2P transactions can be a useful way to manage your cash and maintain quicker access — provided the app immediately transfers the funds to your bank account.
“If your grandparents write you a check and you don’t cash it for two months, that could be a problem,” said Loganathan at Early Warning. Checks can take three to five business days to clear, which can be a pain point for people whose cash flow is limited.
After a transaction in some platforms, the money is parked in that third-party app until the consumer actually requests the funds move back to their bank.
Gen Xers were the age group most likely to say they’d rather have their money under their mattress than in a third-party app where their money sits idle.
One behavior is consistent among all demographics: Everyone wants to be paid right away for money they’ve laid out. Let's say you bought concert tickets for next month. Zelle asked survey respondents whether they'd want to be paid back immediately, whenever is good or when the credit card statement comes in. Two-thirds of each group said they’d like the money back ASAP.
About a third of millennials ask to be paid back within minutes, according to Zelle’s study, a sign of that generation's reluctance to be parted from their money.
To compare, 40 percent of boomers don’t ask for repayment: They wait for the money to show up in their accounts.
It’s easy to move money around. The Zelle model is a financial ecosystem that lets different institutions send money from bank to bank, Loganathan said.
“You’re a Chase customer, but you’re able to send money to Bank of America without putting in your bank credentials,” Loganathan said. “They’re all on the Zelle network.”
All generations use digital payments to show their love.
“Gifting is a key piece for boomers,” Loganathan said. From cash birthday or wedding presents, Gen X and boomers send money to their kids through P2P.
“I have friends who, if they know someone is having a bad day, will Venmo them $15 for a manicure or a nice meal out,” said She Spends' McElhaney.
More in Personal Finance: