What are P2P payments and online transfers?

What are P2P payments and online  transfers?

It is easier and faster to transfer money abroad nowadays. With P2P payments, you can easily send money to your friends and family. You can do your transfers online or using your mobile phone. The most important is to find P2P service which will be the right solution for you.

Peer-to-peer payments

With peer-to-peer payments you can send and receive money from your bank account or a card to the recipient’s account.

PayPal is the most famous PSP service, but other services are growing, too. You should find out about other services and compare them. Find the one that will work best for you. Compare estimated fees, exchange rates, and transfer speed.

It is easy to use peer-to-peer payment accounts. Firstly, choose the service for transferring money, then create an account on its website. It will take you only a few minutes or sometimes less than a minute. You must provide your bank account, credit or debit card. Sometimes you will need to verify your identity.

When you want to send money, choose the recipient’s country, write details about him, and the amount you wish to send. The money will arrive in minutes or days. Transfer time depends on the service you choose. It can also depend on chosen payment or payout method, too.

TransferWise Peer-to-peer payments

P2P services

P2P payment services will do the transfer for you. They are better than banks. Pros of these services compared to banks:

  • They are cheaper than banks because they will charge you lower fees. If you use a bank for sending money, you will pay around 5% of the transaction. With P2P services, you will usually pay 0.5 to 1.5% of the amount. Fees sometimes depend on many factors, but they are always cheaper than banks’ fees.
  • Banks will usually offer higher exchange rates. Some of the P2P services will offer you mid-market rates.
  • They will deliver your money faster than banks.

Send money to friends and family

Technologies are changing fast. Sending money to friends and family became easier. You don’t need to use a bank as your provider anymore. You can use P2P services or applications. Here are some of the applications:

  • TransferWise
  • Square Cash
  • Venmo
  • Popmoney
  • Zelle
  • Google wallet
  • Dwolla

TransferWise

This is a peer-to-peer international money transfer service. How does this system work? If you want to send Euros to Dollars, it will find someone who needs the opposite transfer. These exchanges are done automatically and you don’t need to care about how it works under the hood.

With this service, your money will arrive at your recipient fast, in only 1-2 days. You won’t pay high fees for sending money. It will charge you only 0.5% of an amount for most of the destinations.

Money transfer options:

  • bank transfers
  • credit and debit card
  • Facebook Messenger

TransferWise is different from banks and other exchange services because it offers you mid-market rates for transferring money abroad. You can check the fees and the exchange rates on its website, and you don’t need to worry about hidden fees anymore.

How TransferWise Works

CurrencyFair

This is one more P2P service for sending money worldwide. It is founded in Ireland, in 2009.
Its exchange rates are set by the users, and the fee is $3. You can also use MarketPlace, and sell your currency into another. Sometimes you can get better exchange rate than a mid-market rate. You will pay an additional fee which is 0.15% of the amount. The money will arrive in a couple of days.

Xoom

Xoom is a popular service for sending money. PayPal is its owner. If you decide to use this service, it promises you that the money will be delivered instantly. It actually depends on chosen payment and delivery option. If you pay using a bank account, transfer time depends on the bank. The delivery time is fastest when you use debit or credit card for sending money.

The transaction fees depend on the payment method, the recipient’s country and the amount you want to transfer. They will be lower if you choose to pay with a bank account.

Xoom doesn’t use mid-market rates as TransferWise. Its rates are higher. You should be ready to pay transfer fee plus a hidden fee in added to the exchange rate. Before you decide to send money, visit its website and see potential charges for transferring money abroad.

P2P payments are the best innovative solutions that improve international money transfers. Choose TransferWise, CurrencyFair or Xoom service, and enjoy simple, safe, fast and cheap money transfer process.