P2P Payments refers to the transactions that happen between two parties using peer-to-peer technology. This financial innovation is playing a significant role in the digital economy, transforming how we carry out transactions.
As per the data from Statista, worldwide P2P payments transaction value stood at over $3.74 trillion in 2020, exhibiting the rapid expansion of this form of payments.
The Background of P2P Payments
P2P payments’ advent traces back to the 1990s with the inception of PayPal. Since then, the importance of these payments has escalated, with the market witnessing a deluge of providers like Venmo, Zelle, and Square.
Functions and Use Cases of P2P Payments
P2P Payments erases the need for intermediaries, facilitating individuals to send and receive money instantly. These transactions are commonly used for splitting bills, paying rent, or even sending gifts. The fintech apps also increasingly adopting P2P Payments for money transfers.
Impact on the Market
The rising adoption of P2P Payments is disrupting traditional banking services. It has compelled banks and financial institutions to integrate P2P payment systems into their operations, hence democratizing financial services.
Latest Trends and Innovations in P2P Payments
Blockchain technology and cryptocurrency represent significant trends in P2P Payments. Given the decentralized and transparent nature of blockchain technology, P2P payments with crypto are secure, quick and eliminate cross-border transaction challenges.
P2P Payments on the MEXC Platform
The MEXC platform exemplifies the integration of P2P Payments in the crypto space. The platform enables users to execute P2P transactions securely with a full suite of crypto assets.
- Promotes easy and swift transactions
- Secure and transparent blocks
- They offer multiple cryptocurrencies for transactions
| Year | P2P Payments Transactions Value (in trillions) |
|---|---|
| 2018 | $1.85 |
| 2019 | $2.41 |
| 2020 | $3.74 |
In conclusion, the P2P Payments have fuelled a paradigm shift in the landscape of transactions. Its integration in almost all sectors, including fintech apps and crypto platforms like MEXC, underscores its effectiveness and the potential to redefine conventional banking systems.
Join MEXC and Start Trading Today!
