P2P transfers in mobile apps: How does this solution work and is it safe? (Sponsored)

P2P, short for peer-to-peer, refers to a direct exchange of funds between two users without intermediaries such as traditional banks. In mobile apps, this method has become one of the most convenient ways to send and receive money in just a few taps, allowing users to transfer funds instantly without needing account numbers.

In this article, we explain how P2P transfers work in mobile apps, where they are used, what risks they carry, and which technologies make them secure, including examples of solutions offered by fintechs.

What are P2P transfers, and how do they work in mobile apps?

P2P transfers (peer to peer) are a type of electronic money transfer in which funds are sent directly from one user to another, typically via a mobile app. This can happen within a single platform (for example, between users of the same payment app) or through integrated systems connected to banks or card networks. The process is usually fast, intuitive, and completed in just a few seconds, requiring only the recipient’s phone number, email address, or account name.

In practice, this system relies on the app’s integration with a payment provider that enables immediate authorisation, processing, and settlement of the transaction. Mobile P2P transfers have become standard not only in banking apps but also in shopping platforms, social networks, and gaming environments.

Why are users increasingly choosing P2P transfers on their phones?

Modern mobile finance apps respond to the needs of users who expect simplicity, speed, and 24/7 access. P2P transfers eliminate the need to enter long account numbers or confirm transactions in a desktop browser. Just a few taps and the money is sent, regardless of the time of day or geographical location.

Another advantage is the easy integration with contacts, transaction history, and automatic payment reminders. For users, payments feel like they happen in the background, stress-free and instant. For younger generations, this is the norm they also expect from businesses, marketplaces, and shopping apps.

Are P2P transfers in mobile apps safe?

While ease and convenience are key advantages, security is an essential part of the P2P process. Mobile apps must meet strict standards for data storage, encrypted communication, and user authentication. This includes two-factor authentication, card tokenisation, Strong Customer Authentication (SCA), and end-to-end encryption.

Modern fintechs, such as Fenige, go a step further by implementing real-time fraud monitoring, biometric user verification, and anomaly detection tools. As a result, even instant transfers can be thoroughly secured and, if needed, stopped or blocked immediately. In practice, this means that apps offering P2P transfers can match, and sometimes surpass, the security standards of traditional financial institutions.

How are mobile P2P transfers used in business?

Although P2P transfers are mainly associated with personal use, they have broad applications in business, especially in B2C and C2C models. For example, marketplaces can enable direct payouts between buyers and sellers without needing a central payment processor. Loyalty programmes, local service apps, and referral programmes also use P2P transfers as a fast method for disbursements and refunds.

For companies, the key benefit is the ability to transfer funds quickly without costly bank fees or heavy administrative burdens. Employees, partners, or micro-entrepreneurs can receive payments or reimbursements almost instantly. In the case of mass payouts, for example, in affiliate programmes, P2P systems also allow for automation and clear transaction reporting.

What should you consider when choosing a P2P app?

When selecting an app that offers P2P transfers, it is important to look at several factors. First, verify whether the app has a payment institution licence, complies with PSD2 regulations, and offers full control over transaction history. Also essential are security features such as the ability to block accounts instantly, set transaction limits, and recover funds in case of errors.

Technology is just as important. Fintechs that provide well-documented APIs, integration support, and platform stability earn the trust of both consumers and business clients. A great example is Fenige, a Polish payment institution with a European licence, which provides infrastructure for smooth and secure P2P payments, including white label solutions for mobile apps. It is a system that can be scaled, adapted, and developed for a wide range of industries.

To sum up, P2P transfers in mobile apps are a modern, fast, and secure payment solution that works well in both everyday life and business operations. With the right technological foundation and high security standards, they can significantly streamline financial transfers without extra costs or delays. However, it is important to choose apps and providers that combine functionality with accountability and experience. Only then will P2P transfers deliver on their promise: simple, direct, and reliable payments just a tap away.

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