Peer to peer payments, or P2P payments, are becoming increasingly popular because of the convenience they offer as we move to a cashless, contactless culture. More and more payment platforms are beginning to emerge, and there’s no signs of slowing down.
Simply put, P2P is a digital transfer of funds, most commonly made through mobile apps on your smartphone. Transactions can be used for anything from splitting a dinner bill between friends to send money to your child at college.
Here are some facts you should know about P2P payments.
How to P2P Payments Work?
You’ll start by signing up for an account, then linking your bank account or credit or debit card to it. Some apps might require further verification information and passwords to increase security. After your account is set up you can find other users by their username, their email, or your phone contacts.
Sending and receiving money is usually just a couple of clicks away after that. You choose who you are sending money to, the amount of the transaction, add a reason for payment if you desire, then submit the payment. Depending on which P2P payment service you use, the time it takes for money to transfer can range anywhere from a few seconds to a few business days.
Some P2P allow for fee-free payment, while others charge a flat-fee or low percentage fee. Research the providers to see what if any fees are associated with making transactions.
What the benefits of P2P Payments?
P2P payments are all about ease-of-use, convenience, and immediacy with which you can pay back friends and family. You don’t have to carry cash or try to locate an ATM nearby. It’s becoming commonplace to hear people say “I’ll Zelle you the money” instead of simply saying “I’ll pay you back.”
One of the best features is that you can request money from or pay multiple parties at once. You can always pay the exact amount you owe. And your activity will be logged so you can easily track your finances.
How Horizon is Getting in the Game
Our digital wallet is growing! Along with Apple Pay and Samsung Pay, we offer Zelle® within online banking.
Zelle is a fast, safe and easy way to send and receive money with people you know and trust. So if you already have the Horizon app on your phone, there’s no additional download necessary. Once you enroll, all you need to send money with Zelle is the preferred email address or mobile number of the trusted recipient. If your recipient isn’t enrolled in Zelle yet, they will get a notification explaining how to receive the money.
For more information, call us at 888-873-2640 or visit your local branch.