P2P payments are one of the most popular ways to deposit and withdraw money from exchanges and crypto wallets, which makes many people have questions about security and its legality. Let’s understand what the procedure of p2p payments is, what are the options for transferring money to another user, and what risks should be considered.
P2P is a transfer from one person to another directly without an intermediary. P2P payment, short for peer-to-peer or person-to-person payment, refers to a transaction that allows the public to transfer their money to people online using personal bank and credit union accounts or mobile apps. The mechanism is the same as a card-to-card bank transfer.
Person-to-person payments can be made in the same currency or with conversion. The mechanism can be used to buy cryptocurrency. Example of use: you make a transaction with another person. After that, you send funds in the chosen currency to his bank account. After receiving the payment, the other party to the transaction transfers the specified amount in cryptocurrency to you.
Peer-to-peer payments can be used to top up your account at crypto exchanges or bookmakers. In this case, the balance may receive a payment in your currency or the selected cryptocurrency. It all depends on the terms of the transaction.
In order not to search for the participants of the transaction yourself, there are special programmes on which you can choose payment solutions using P2P. The most popular P2P payment services include:
- PayPal;
- Apple Pay;
- Venmo;
- Cash App;
- Google Pay;
- Square Cash.
The number of services that help in sending money to other users is constantly growing. This is due to the fact that more and more people are abandoning cash in favour of electronic money. It has become more convenient to use bank cards, wallets, crypto wallets to pay for services in ordinary life.
