Consumers Prefer Banks to PayPal, Survey Says

Even consumers who have used PayPal would prefer to use a bank service for person-to-person payments, according to a survey released today (Sept. 24) by CashEdge, a New York-based vendor of funds transfer software.

Among the 425 online banking consumers surveyed in August, the preference for a bank was even more marked among those who had never used a service such as PayPal. Sixty-three percent of this group favor a bank-run p-to-p service, versus 58 percent of respondents overall.

The survey, conducted by independent research firm, Zoomerang, San Francisco, on CashEdge's behalf, also found that consumers strongly expect to be able to open a new account online (58 percent) and to have same day access to it (73 percent).