Person-To-Person (P2P) Payment Services...What Is It?

In today's world, it can be difficult to stay ahead of the curve when it comes to technology and the advancements that occur on what seems to be a daily basis. Think about the last time you heard about the typewriter? Does anyone even use a CD player anymore? Or how about those rare instances when you're standing in line at the grocery store checkout waiting patiently while the customer in front of you pays by check. A check? The amount of time it takes for someone to write out a check didn't seem to bother anyone in the past. Now, with the world travelling at the speed of light, writing a check in the grocery check out line couldn't take longer!

The electronic payments industry plays a significant role in the fast pace of technology, working to meet the relentless consumer demands for online payment services. After nearly a decade of positive experiences with online banking, ecommerce, bill pay and transfer services, consumers are looking for new online payment solutions, particularly the ability to send money easily and securely to friends, family and others.

Instead of just using a mobile phone or computer to reach out and call a friend, consumers may soon be using computing devices to reach out and pay them. That is, at least, what financial institutions are expecting as they begin to roll out person-to-person (P2P) payment services, which would allow consumers to send money to friends, relatives, or even independent service providers by e-mail or mobile phone.

Unlike a wire transfer or other previously available payment options, P2P would only require the payor to have their payee's e-mail address or mobile phone number. No bank routing number and account number required.

Mobile phones, such as the iPhone, are a leading driver behind this technology. The term "application" (or "app" as most iPhone users call it) are like nothing you've ever seen on a mobile phone. Mobile phone users are becoming more sophisticated with the use of these applications because the shear convenience of having information at our immediate access is what today's consumer wants. And having payment capabilities such as the P2P payment services available right on your mobile device is the next natural leap for this technology.