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Riding the P2P wave on distributed ledger technology

There is significant disruption in the financial services industry from the rise of peer-to-peer (P2P) mobile payments.  The acceleration of the P2P payment market is driven by smartphone use growth, fintech startups, and preferences of Millennial and Gen Z consumers.

As background, peer-to-peer payments refer to digital money transfer technology which allows a customer to send and receive funds via a mobile device or personal computer.  P2P payments offer a convenient and affordable alternative to traditional payment methods and are considered to be more convenient for both the sender and the receiver.

P2P users now routinely pay their friends for food, entertainment, rent, and utilities, as well as services such as babysitting and dog walking, through mobile P2P applications such as Venmo, Zelle, SqareCash, PayPal, Google Wallet, and SnapCash.  These non-traditional peer-to-peer payment providers processed approximately $400 Billion of P2P payments in 2018.

The foundational success for P2P payments was established by PayPal, nearly 20 years ago. PayPal laid the groundwork for the modern peer-to-peer economy when the company was acquired by eBay in 2002. The combination of PayPal and eBay allowed consumers to buy goods from other consumers without sharing any confidential banking information.  In this regard, PayPal technology was the genesis of today’s mobile-based P2P digital payments.

P2P payments have become the norm and adoption is accelerating in the United States.  In the US today, there are 266 million smartphone users.   A third of all US smartphone users will make at least one monthly P2P payment in 2019.  The number of smartphone users in the US is expected to grow to 285 million during the next 4 years.   According to research from eMarketer, the number of US users making monthly P2P payments will grow to 122 million by 2022.

Global consumers have also grown less reliant on cash and traditional bank payment methods, resulting in the fast growth of mobile payments.   For example, there are now 750 million smartphone users in China.  That is three times the number of smartphone users in the United States. In 2018, China alone processed $41.51 trillion dollars in mobile transaction volume.  This P2P volume represents more than three times China’s GDP.

Millennial and Gen Z preferences are a major factor in driving the rapid growth of P2P payments. Cornerstone Advisors survey indicates that 26% of young Millennials and 34% of older Millennials now use Venmo for their P2P payments.  According to BBVA, 73% of Millennials would be more excited about a new financial service offering from technology companies such as Google, Apple, PayPal, Venmo or Square than from their own bank.  According to the BBVA survey, 70% of millennials believe that in five years the way we pay for things will be totally different than today.

In this favorable environment of a growing global demand for P2P payment solutions, Hash Labs will soon launch Coro, a next-generation digital payment app.  Coro’s customers will be able to send and receive money and exchange currency faster, cheaper and more securely, including gold, which is the oldest and most trusted global currency.  Coro will operate globally on distributed ledger technology (“DLT”).  Our private permissioned DLT network runs on Hashgraph, the world’s fastest, most scalable and secure technology.

Integration with a debit card will allow users to transact with merchants in stores and online.  Coro will be available in the US in Q4 of this year.

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