Financial Tips

When To Use a P2P Payment System

It’s becoming increasingly rare to carry cash these days, but the need to send money to friends and family has not gone away. Thankfully, P2P (“person to person” or “peer to peer”) payment systems allow you to safely send payments to people directly from your mobile phone with the touch of a button. That’s putting financial freedom at your fingertips!

What are P2P payment systems?

P2P supports sending direct money payments from bank accounts or credit cards simply by using an online or mobile app. The option that we recommend is Zelle, a popular P2P payment system that is easily accessed through our mobile app.

How do I use P2P payments?

Sending a P2P payment couldn’t be simpler. Just download the app, link your bank account, and go through a verification process. Once your account is set up and verified, you can send payments quickly and securely. You identify the recipient, enter the amount, and send the payment. Most money transfers are instantaneous.

When do I use P2P payments?

P2P payments make sense anytime you want to send money to people you know and trust, like family, friends, or colleagues. Popular uses for P2P payments include: splitting meal checks, paying shares of bills or rent, and sending gifts. Instead of digging through your pockets for change at the restaurant, simply open your app and click send.

Because money is sent instantly, you should not purchase goods that may need to be returned using a P2P app. It’s preferable to use a credit or debit card from your banking institution for these purchases, as they will provide greater protection in cases of damage or fraud.

What are the risks with P2P apps?

Often, money sent through P2P apps cannot be reclaimed once it is sent. You must be sure you are sending money to the correct destination when making a P2P payment.

Also, some people attempt to benefit illicitly from a fast and easy payment system. As such, you need to be wary of fraud and scam attempts. If anyone contacts you about a payment you did not make and asks you to return the money, use your best judgment before sending any money.

Final thoughts

P2P payment systems are a safe and convenient way to send money quickly. Make sure to be smart about P2P transactions—know who you're sending to and make sure to send the right amount. Treat P2P funds like cash; once they're gone, they're gone. But don’t stress too much about it. Enjoy the flexibility and convenience of financial freedom in the palm of your hand.

Did you know Fremont Bank offers P2P functionality through Zelle within our mobile app? If you have an account with us, download the app and sign up today!

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