Boston, June 5, 2012 – A new report from Aite Group explores the payments industry’s opportunity to provide payment disbursement services to corporations and government agencies. Based on a Q2 2012 Aite Group survey of 1,115 U.S. consumers, the report provides insight into the types of disbursements consumers receive and the payment methods by which they receive them.
In the United States, person-to-person (P2P) payments represent a formidable market opportunity—about US$900 billion in transaction volume, predominantly in cash and checks, and another US$200 billion in e-commerce payments. Despite so much focus on these payments, however, the industry has failed to place the same level of attention on an important segment: government- and business-to-consumer (G2C and B2C) disbursements, which generally take the form of refunds and tax returns. Combined G2C and B2C disbursements dwarf the size of P2P and U.S. e-commerce sales by a massive amount. Given that a sizeable chunk of G2C and B2C transactions are still being transacted via check, Aite Group believes that opportunities exist for payment processors to step in and provide support.
“The G2C and B2C disbursement market represents a large opportunity from a transaction volume standpoint,” says Ron Shevlin, senior analyst with Aite Group and co-author of this report. “Specifically, it could help to further displace paper checks."
“Disbursements have also become a key part of the business model of a number of new economy participants (e.g., oDesk, Airbnb),” adds Gwenn Bézard, research director with Aite Group and co-author of this report. “The decade ahead will open new opportunities related to processing disbursements as a widening range of these businesses make disbursements central to their business model."
The report references the following industry players: ADP, Airbnb, Answers.com, Apple, Bewin, Citigroup, Craigslist, Earthport, eBay, Elance, Facebook, GetAFreelancer, Google, Guru, HomeAway, Hyperwallet, istockphoto, JPMorgan Chase, Ladbrokes, MasterCard, Obopay, oDesk, Payoneer, PayPal, ProPay, RentACoder, Skrill, StubHub, SWIFT, Visa, Wave Crest, Wells Fargo, Western Union, Wire, and WorldPay.
This 17-page Impact Note contains nine figures and five tables. Clients of Aite Group’s Retail Banking service can download the report.