Instant payments and P2P
Making a payment today is increasingly easier thanks to the technology that allows us to make them without having to resort to an ATM or even a bank card, since, through mobile devices, people can settle their debts in a way easy and efficient.
Part of this great technological advance is P2P payments also known as peer to peer, which are electronic transactions made through a mobile application or digital banking. Furthermore, these payments are allowed between two parties, using individual bank accounts or even credit cards.
P2P is not a new technology, however it is used in today’s world. This consists of a decentralized communication model, that is, it does not need a central server since each part acts as equals, allowing each user to choose the functionality of the client or provider. This technology is used in various sectors, for example, Spotify, which originally worked as a P2P between the platform and its users. Likewise, Skype is an application that uses this method; however, the banking sector is one of the last to find beneficial use for it.
Due to the moment humanity is going through because of COVID-19, people want to use less and less cash and even businesses recommend other types of payments, making P2P more convenient than ever. In addition to sanitary convenience, the speed, ease of use and convenience of this method are the great benefits of this payment method.
On the other hand, the days that the transactions took to be carried out are already in the past, since P2P are instant payments, so the money is available in the recipient’s account in a few seconds, regardless of the time or day in which the the transaction to take place.
Due to the great advantages that these mean, in 2019 68% of US millennials already use this payment system to pay off their incomes, restaurant accounts or any other type of payments, including those made through electronic commerce, since thanks to these, the risk that sellers do not charge is reduced, since payment is synchronized with the shipment of the merchandise or provision of services.
Within the universe of mobile payments there are 3 different ones: money transfer, purchases through electronic commerce and, finally, mobile payment at the point of sale, also known as Contactless, which works through NFC technology.
Well, P2P payments offer a range of possibilities to accelerate financial inclusion, since they give unbanked people the opportunity to make electronic payments through their devices, however, there are also certain security measures that must be taken Keep in mind when opting for this system, since getting a refund in the event of a failed transaction is not an easy task, so activating passwords or notifications will keep you updated on each of your financial movements and thus be able to truly enjoy all the benefits of P2P payments.
