Peer-to-Peer Payments (P2P)
Peer-to-Peer (P2P) payments refer to the transfer of funds directly between individuals, often via mobile apps or online platforms. These are commonly enabled through closed-loop systems (e.g., PayPal, Venmo) or card rails; Open Banking-based P2P solutions are emerging but less common globally.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
