Generation X and baby boomers, not millennials, are driving adoption of P2P services like Zelle, according to a survey conducted by Early Warning Services, the network operator of the P2P service.

The survey, titled “Digital Payments Adoption,” found that 50% of first-time P2P users were age 45 and older. The report, released on March 4, also found that 52% of Gen X and 46% of boomers said they “trust” P2P payments and are interested in using them.

“Consumers above the age of 45 are overcoming their skepticism of P2P and are beginning to trial digital payments as part of their changing mobile and online banking behavior,” Ravi Loganathan, chief data officer at Early Warning, said in a statement earlier this week.

It is worth noting that Zelle is a bank-backed P2P service, while Venmo, the other popular P2P service is owned and operated by payments company PayPal. The latter–with its social media element–is popular among millennials, for whom the app was specifically designed for, while Zelle is a private P2P service between the payer and payee facilitated through the payer’s mobile banking app. And historically, both Gen X and boomers have shown higher trust towards banks than fintechs, which could be one explanation for their Zelle preference.

Also Read: Zelle to Add 200 FIs and Finastra Partnership in 2019

In fact, according to the Digital Payments Adaption report, 67% of Gen X and 74% of boomers ranked P2P “offered through a financial institution” as a top reason for using this mode of payments. Last July, the same report showed just 49% of Gen X and  70% of boomers felt that way.

“Generation X and Boomers have a high degree of trust in their financial institutions. The increase in trial can be attributed to solutions, such as Zelle, being included within the banking apps these consumers are comfortable using,” Loganathan said.

And indeed, Zelle ended last year with record high transaction volumes.  In 2018, Zelle reported $119 billion in payments on 433 million transactions processed compared to $75 billion for 247 million transactions in 2017. In terms of Venmo’s transaction volume, Venmo’s volume increased 79% YOY with $62 billion in payment volume processed.

For the Digital Payments Adoption report, Early Warning surveyed 1,500 U.S. consumers 18-72 years old, who owned a smartphone and held a checking and/or savings account. The survey was conducted during the fourth quarter of last year. The survey was a 20-minute self-contained digital questionnaire that was administered online, according to the announcement.

Read the full report here.

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