What is a P2P payment system?
P2P payment systems have revolutionised the way we pay. Long gone are the days of writing checks and visiting a bank to wire money to friends and family.
Now, you can send money directly to loved ones in just a few clicks. Whether you’re splitting a bill or helping out with regular household payments, P2P has changed the game when it comes to paying friends and family.
But what is P2P payment? Here’s a handy guide to P2P payment, including how it works, how to use it, and peer-to-peer payment apps.
What does P2P mean?
First things first, what does P2P mean? P2P stands for peer-to-peer, which means that a payment is made directly from one person to another. With P2P, there’s no need for intermediaries like banks or credit card companies.
Instead, P2P payment systems use technology to facilitate transactions between individuals. P2P systems you might have heard of include PayPal, Apple Pay, and Western Union.
How do P2P payments work
P2P payments typically use a digital platform to transfer money directly from one account to another. P2P systems are often online portals or mobile apps to make it easy to transfer money wherever you are.
The P2P service facilitates the transaction between the two parties.
When you register with a P2P payment service, you’ll need to connect a bank account. This might be a bank account, credit card or mobile wallet, for example. Different services allow different kinds of accounts. You’ll then be able to send money to a loved one registered with the same service.
How much do P2P payments cost?
P2P payment providers are usually free to sign up to. However, they might charge a fee when you send money, especially when you send money abroad.
Peer-to-peer payment provider fees can include:
- Instant transfer fees
- Debit or credit card fees
- International transfer fees.
Are peer-to-peer payments safe?
A common concern when sending money online is safety. You want to know the service you choose is secure to deliver your money reliably and keep your bank details safe.
Most P2P payment systems have security features in place to protect your transfers. However, it’s worth researching each provider’s safety and fraud prevention policies to make an informed choice.
Common peer-to-peer payment safety measures include:
- Encryption
- Multi-factor authentication
- Biometric authentication
- Activity alerts
- Tokenization.
Is Western Union a peer-to-peer payment system?
Western Union is a well-known peer-to-peer payment provider. In fact, it’s one of the oldest P2P payment systems in the world. Western Union has been connecting people globally for almost 150 years.
Now, Western Union facilitates around 25 global money transfers every second with online, in-app, and in-store ways to send money transfers.
There are a range of ways to pay with Western Union, including by bank transfer, by debit or credit card, with Google Pay, or in cash at an agent location.
Peer-to-peer payment apps
Using an app is one of the easiest ways to send money to loved ones. You can make transfers when you’re out and about – perfect for splitting bills and repaying friends before you forget.
P2P apps can also be a more secure way to send money as you can use biometric authentication to log in (like fingerprint and face recognition).
There are plenty of peer-to-peer payment apps out there to choose from. Western Union has a money transfer app in addition to online and in-store services, so you can send money reliably to loved ones while you’re on the go.
To send money with Western Union, you just need to log in (or register for free) to get started. You can choose how you pay and how your loved one will receive the money. If you’d rather pay in cash, you can even begin a transfer on the app and finish it at an agent location.
Send money online with Western Union
Ready to send money online using a peer-to-peer payment system?
