A Person-to-Person (P2P) payment app is a service that allows one user to send money to another using an app or website. P2P apps are linked to your deposit account or through your debit card. Payment apps include PayPal, Venmo, CashApp, and many others.
You can use them for anything from splitting a dinner bill, paying rent, or contributing to charity. Some P2P payment apps are built into or available through mobile banking apps or smartphones. Most are available as stand-alone apps that can be downloaded. You can even send money through Facebook Messenger by adding a U.S.-issued debit card to your Facebook profile.
Each mobile payment app has its own advantages and limitations. Choosing one depends on the features you want. For example, if your bank has a mobile app, it might offer the option to send or receive money. However, it could be limited to customers within your institution. Some apps may have a processing delay and others may charge a small processing fee.
When choosing an app, you may be ask yourself, “How do I choose the right app? Is one safer than the others?” Do what most folks do, and ask friends and family for recommendations. Look for a service that encrypts transaction data and complies with Payment Card Industry Data Security Standard (PCI DSS).
P2P payments are flourishing due to the convenience of being able to immediately and safely send and receive funds, pay bills, and make purchases anytime, anywhere.