Peer-to-Peer Payments
Peer-to-peer payments are sometimes also referred to as person-to-person payments. It is a digital payment between two individuals, a type of mobile banking. The funds are transferred directly from one person’s bank account to the other individual’s bank account or banking card or app.
Peer to Peer payments have been around for a while, but they are becoming more and more popular fintech solutions when paying for goods and services. It’s estimated that peer-to-peer online payment would be worth more than $ 2500 million at the end of 2022. Where banks have fallen short, P2P payments have come upfront to make things more convenient. The biggest one of them is that they are instant.
Working on Peer-to-Peer Payments:
P2P payments work by connecting the payer and the payee through an app or website. It is very easy and simple to maintain and create, with just a phone number or email address providing the right information for verifications you can set it up. The payer enters the amount they want t send and the payee’s email or phone number. The funds are transferred directly from the payer’s bank account, and cards, to the payee’s P2P account just with a snap of fingers.
Safety & Security of P2P:
P2P payments are considered safe and secure platforms for performing financial transactions. Like all payment software, they are held high to regulatory standards and use a variety of methods to keep funds and information safe. Data encryption, anti-fraud monitoring, two-factor authentication, and added layers of security such as 3DS are some of the common measures companies take to make sure your financial and personal information is secure.
Why do we need them?
P2P payment apps are very popular and will continue to be used by businesses as a more convenient way to send and receive money. However, there are some things to keep in mind right before using P2P payments in your business.
- Funds are typically available immediately:
Another big advantage of P2P payment is that the funds are typically available immediately. This helps if we need to make a last moment transaction.
- Cost-Effective:
With much lower fees and some are free when compared to other traditional banks. This seems more attractive than some financial institutions.
- New Era is Digital:
Invoicing is a big part of managing finances, and P2P payments can make the process quicker and easier through electronic invoicing.
- Ease & Convenience:
They are very easy to use. Sending and receiving money using a P2P app usually takes a few seconds and no effort since all the information needed is already in the application.
Conclusion
P2P transactions are a very appropriate replacement for cash payments and they can be used to send money, split bills with friends, or pay bills faster and more easily than via traditional payment methods like bank transfers. Depending on the P2P transfer app of your choice, Peer-to-Peer payments can be easy, fast, and secure. When selecting a service, put costs in your mind, funds delivery times, and some other factors such as having to top up a balance or having to withdraw cash to your bank.