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Peer-to-peer transaction

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172:, 42% of respondents said the reason they would not send money through a P2P payment application is because they are concerned about the security of their payments. Because of the ease of use and accessibility of large sums of money straight from individual's bank accounts, security measures have been put in place to minimize theft. Most applications require password-protected sign in or a 187:
Although typical fail-safes come into play for worst-case scenarios, such as the $ 3,000 limit per week on Venmo transactions, financial institutions themselves may notify their customers of theft and fraud. P2P payment applications, as third party intermediaries, typically deflect responsibility to
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There are some loopholes that some thieves have exploited. For example, Venmo's platform makes it look as though a payment is registered and complete immediately when the button is clicked, but the actual transaction does not process for a couple of days. Thieves can exploit this by pretending to
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Since this concept's inception, many business entities have developed P2P transaction capabilities, increasing the competition in the space and the convenience brought to the consumer. The prevalence of mobile devices has also forced the adaptation of P2P payment applications to become more
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During a transaction, money is taken out of the user's account within the application and transferred to the receiving user's account. If there is not enough money in the account to complete the transaction, money is taken directly from the user's bank account to finish the
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technology affected many aspects of modern-day life, one of those being the ability to transfer money to other people anywhere in the world within seconds. Right now, there are many innovators in the P2P transaction mobile space, with industry leaders such as PayPal,
120:, among myriad others. All of these apps allow users to easily send and receive payments in a short time frame, with little to no fees involved. The prevalence of smartphones allows most people to use their phones as a type of 176:
to access a user's account. Bank account and credit card information is encrypted. However, if there is a requirement for bank or credit card, its not a real peer-to-peer anymore.
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made from one person to another through an intermediary, typically referred to as a P2P payment application. P2P payments can be sent and received via mobile device or any
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in the application records the transaction and either sends or pulls money directly to the user's bank account or stores it in the user's account within the application.
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to facilitate payments between customers and sellers, whether they be businesses or individuals. Buyers needed the service because they did not want to divulge
298: 184:), which Venmo registers as a transaction. In reality, the transaction is not yet complete, meaning the payment can bounce back and be declined by the bank. 347: 406: 236: 92:
information to random sellers. Sellers needed the service because many consumers did not have the means to open up a credit card
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First, the user downloads the application and creates an account and links it to a credit card, debit card, or bank account.
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the banks and financial institutions who actually hold and process the user's transactions and funds.
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P2P payment application functionality varies, but the processes generally follow a similar structure:
70:, which specialized in electronic money transfers. The payment system initially served to assist both 37:
Through the P2P payment application, each individual's account is linked to one or more of the user's
23: 436: 206: 323:"THE PEER-TO-PEER PAYMENTS REPORT: The Exploding Market For Smartphone Apps That Transfer Money" 169: 85: 299:"PayPal Launches PayPal.Me, A Simpler Way To Request Money Using Your Own Personalized URL" 22:(also referred to as person-to-person transactions, P2P transactions, or P2P payments) are 8: 42: 74:
businesses and individuals, reaching massive scale following PayPal's acquisition by
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in 2002. This event marked the beginning of the rapid growth of P2P transactions.
75: 266: 97: 375: 430: 148: 129: 125: 27: 117: 100:. Peer-to-peer payments were now in full effect in the online marketplace. 38: 147:
Then the user can create contacts and send payments using another user's
89: 181: 108: 71: 132:. P2P payment volume is expected to reach 86 billion dollars by 2018. 380: 271: 34:, offering a convenient alternative to traditional payment methods. 31: 121: 67: 113: 376:"The Best Mobile Payment Apps for Sending Money to Friends" 78: 180:
send a payment to someone in exchange for something (i.e.
267:"Your Misunderstanding of Venmo Could Cost You Big Time" 348:"PayPal Launches Peer-to-Peer Payment Platform (PYPL)" 407:"FRB: Current Use of Mobile Banking and Payments" 163: 428: 103: 345: 373: 264: 135: 265:Wolff-Mann, Ethan (September 21, 2015). 52: 237:"How Safe is Venmo and Why is it Free?" 429: 374:Wolff-Mann, Ethan (October 12, 2015). 279:from the original on January 19, 2021 57: 369: 367: 260: 258: 256: 234: 230: 228: 226: 204: 13: 14: 448: 388:from the original on May 11, 2021 364: 339: 296: 290: 253: 223: 84:eBay's business model required a 41:. When a transaction occurs, the 399: 315: 205:CFA, Adam Hayes (2015-01-16). 198: 164:Information and money security 62:P2P payment originated in the 1: 191: 168:In a survey conducted by the 207:"Peer-to-Peer (P2P) Economy" 104:Rise of smart mobile devices 7: 346:Investopedia (2015-09-02). 235:Nath, Trevir (2015-03-24). 10: 453: 24:electronic money transfers 20:Peer-to-peer transactions 16:Electronic money transfer 86:transaction intermediary 136:Operation/functionality 411:www.federalreserve.gov 66:with a company called 49:convenient for users. 53:Historical background 155:, or account handle. 124:, particularly when 30:with access to the 58:Birth of eCommerce 64:Pacific Northwest 444: 421: 420: 418: 417: 403: 397: 396: 394: 393: 371: 362: 361: 359: 358: 343: 337: 336: 334: 333: 327:Business Insider 319: 313: 312: 310: 309: 294: 288: 287: 285: 284: 262: 251: 250: 248: 247: 232: 221: 220: 218: 217: 202: 128:or dealing with 94:Merchant account 452: 451: 447: 446: 445: 443: 442: 441: 437:Payment systems 427: 426: 425: 424: 415: 413: 405: 404: 400: 391: 389: 372: 365: 356: 354: 344: 340: 331: 329: 321: 320: 316: 307: 305: 295: 291: 282: 280: 263: 254: 245: 243: 233: 224: 215: 213: 203: 199: 194: 170:Federal Reserve 166: 138: 126:splitting bills 106: 98:online payments 76:online retailer 60: 55: 43:account balance 17: 12: 11: 5: 450: 440: 439: 423: 422: 398: 363: 338: 314: 297:Perez, Sarah. 289: 252: 222: 196: 195: 193: 190: 165: 162: 161: 160: 156: 145: 137: 134: 130:personal debts 105: 102: 59: 56: 54: 51: 15: 9: 6: 4: 3: 2: 449: 438: 435: 434: 432: 412: 408: 402: 387: 383: 382: 377: 370: 368: 353: 349: 342: 328: 324: 318: 304: 300: 293: 278: 274: 273: 268: 261: 259: 257: 242: 238: 231: 229: 227: 212: 208: 201: 197: 189: 185: 183: 177: 175: 171: 157: 154: 150: 149:email address 146: 143: 142: 141: 133: 131: 127: 123: 119: 115: 110: 101: 99: 95: 91: 87: 82: 80: 77: 73: 69: 65: 50: 46: 44: 40: 39:bank accounts 35: 33: 29: 28:home computer 25: 21: 414:. Retrieved 410: 401: 390:. Retrieved 379: 355:. Retrieved 352:Investopedia 351: 341: 330:. Retrieved 326: 317: 306:. Retrieved 302: 292: 281:. Retrieved 270: 244:. Retrieved 241:Investopedia 240: 214:. Retrieved 211:Investopedia 210: 200: 186: 178: 167: 159:transaction. 153:phone number 139: 118:Square, Inc. 107: 83: 61: 47: 36: 19: 18: 90:credit card 416:2016-10-31 392:2016-10-31 357:2016-10-31 332:2016-10-31 308:2016-10-31 303:TechCrunch 283:2016-10-31 246:2016-10-31 216:2016-10-31 192:References 182:Craigslist 174:pin number 109:Smartphone 96:to accept 381:Money.com 272:Money.com 72:eCommerce 431:Category 386:Archived 277:Archived 32:Internet 122:wallet 68:PayPal 114:Venmo 79:eBay 433:: 409:. 384:. 378:. 366:^ 350:. 325:. 301:. 275:. 269:. 255:^ 239:. 225:^ 209:. 151:, 116:, 419:. 395:. 360:. 335:. 311:. 286:. 249:. 219:.

Index

electronic money transfers
home computer
Internet
bank accounts
account balance
Pacific Northwest
PayPal
eCommerce
online retailer
eBay
transaction intermediary
credit card
Merchant account
online payments
Smartphone
Venmo
Square, Inc.
wallet
splitting bills
personal debts
email address
phone number
Federal Reserve
pin number
Craigslist
"Peer-to-Peer (P2P) Economy"



"How Safe is Venmo and Why is it Free?"

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