Person-to-Person Payments


Person-to-Person Payments is a technology that allows the transfer funds in a peer-to-peer fashion with or without a Financial Institution.

According to the Financial Institutions#

There are two general approaches for initiating a Person-to-Person Payments:

In the first method, based on the successful PayPal approach, users establish secure accounts with a trusted third-party vendor, designating their bank account or Payment Card information to be used to transfer and accept funds. Using the third party's website or mobile application, individuals can complete the process of sending or receiving funds. Users are generally identified by their email address and can send funds to anyone who is a member of the network.

In the second method, customers use an online interface or mobile application (developed by their bank or Financial Institution) to designate the amount of funds to be transferred. The recipient is designated by their email address or phone number. Once the transfer has been initiated by the sender, the recipient then receives a notification to use the online interface to input his or her bank account information and routing number to accept the transfer of funds. In this method, recipients do not need to have an account with the Financial Institution of the sender in order to receive a money transfer.


Bitcoin payments may not even involve at least traditional Financial Institutions

More Information#

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