Peer-to-peer or P2P payments are an in-demand service for a payment platform to have these days. From Download.com’s top 25 downloads, it has been recognized that 11 are P2P applications. Just from these observations alone, one can infer that peer-to-peer applications are obviously growing in popularity. Today’s P2P applications are leading users to a more ‘walletless’ economy than ever before. In terms of peer-to-peer payments PayPal has dominated the market for the last decade, but now other companies in New York have started to catch up, like the well-known iPad development company, Apple.
According to Business Insider, a volume of mobile peer-to-peer transactions could reach $86 billion in the US, within the next two years. Mobile P2P users in the US will grow from 69 million to 126 million by 2020.
P2P is a fast and simple way for people to send cash directly to others using a mobile phone number or email address via online banking, a smartphone or tablet. Using P2P mobile apps lets you send or receive money with a new tap on your phone screen. Most of the peer-to-peer payment systems have apps, and only some allow you to send money to people who don’t have the app. With P2P payments you can link them to your bank account and use them to exchange money with your friends and family. They let you send money to individuals without the hassle and delay of paper checks. Tim Cook in one of his speech rightly said that the next generation – will not know what money is.
The Need for Peer-to-Peer Payment Apps
Credits and debits have become the non-cash standard way to pay merchants. But when it comes to paying another person or friend, there is no standard way to do so. Roommates splitting the rent and the utilities, diners sharing the bill, friends sending monetary gifts for a birthday, and travelers splitting vacation costs are the top 5 use cases for P2P payments, which represent $50 – $80 billion in payments. P2P payment essentially allows users to send payments to anyone with a click of their mobile phone. It is an accessible means of paying bills, in-store purchases, doing grocery, and more. It is practical, accessible and convenient for many users. P2P services act like middleman – these services help people transfer funds from their bank account to another person’s account or card using software, quite similar to mobile banking.
Examples of Few Seamless P2P Payment Service Providers
- Square Cash is a free P2P payment platform owned by Square. Its unique feature called “Cashtags”, allows users to use the link to make a P2P transfer.
- Payso is a mobile payment platform that makes sending and sharing money with friends easier.
- TransferWire is a peer-to-peer money transfer service that allows foreign businesses and students to transact money globally. The firm provides customers with a lower cost alternative to traditional ways of transferring money internationally.
- PayPal a global online payment company, in 2015 it launched peer-to-peer service, PayPal.me, in an attempt to make P2P payment simpler Go to the full article.