Peer-to-Peer (P2P) Payments

Peer-to-Peer (P2P) Payments refer to the digital money transfers made from one individual to another through an intermediary, typically referred to as a P2P payment application.

P2P payments can be made via mobile devices with access to the internet, offering a convenient alternative to traditional payment methods. These applications usually require the user to link a bank account or a credit/debit card to make transactions.

One common use of P2P payments is splitting bills among friends or family members. For example, after dining out, a group of friends can use a P2P payment app to share the cost of the meal. The person who paid the bill can request the owed amount from others, and they can pay their share instantly using the app. This eliminates the need for cash and makes it easier to settle debts.

P2P payments are also commonly used for sending remittances, paying rent, or making other informal payments. Some P2P payment apps also allow users to make payments to businesses.