Peer-to-Peer Payment

Peer-to-peer payments, often shortened to P2P payments, let people send money quickly to friends, family or anyone else, often using just a phone number, email address or username.

Popular services vary by country. Examples include PayPal and Venmo, Zelle in the United States, and the instant payment features built into many banking apps. In countries with real-time payment systems, P2P transfers between bank accounts can arrive within seconds.

For example, after a group dinner, one person can pay the bill and the others can each send their share instantly through an app.

P2P payments are convenient and often free for personal transfers between bank accounts, although some services charge for instant transfers, credit card payments or international transfers.

The main risk is fraud. Because payments are often instant and difficult to reverse, scammers use them to trick people into sending money for goods that never arrive or to fake contacts. Consumer protections for P2P payments are often weaker than for card payments, although some countries have introduced reimbursement rules for certain fraud cases. Users should only send money to people they know and trust.