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Glossary

Peer-to-Peer (P2P) Payments

Transfers of funds between individuals, often via wallets or bank rails without a merchant in the flow.

E-Commerce

P2P payments move money directly between people, typically through wallets or bank transfers, without a merchant. Examples include cash-apps, instant bank transfers, and QR-based wallet sends.

Fees and risk differ from card acquiring: no interchange fees, but providers still manage fraud, KYC, and funding/withdrawal costs. Some wallets issue cards or tokens to let P2P balances spendable on card networks.

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Related terms

Keep learning with these nearby definitions.

Acquirer
Bank or payment institution that signs merchants and routes their card transactions into the card networks.
Apple Pay
Mobile wallet by Apple that tokenizes cards for contactless and in-app payments.
Card Fraud
Unauthorized card use or theft of credentials to initiate transactions.
Card Network
Payment network (e.g., Visa/Mastercard) that sets rules and routes card transactions between issuers and acquirers.
Peer-to-Peer (P2P) Payments