Kanishka NaikP2P payment apps maintain an internal ledger that updates immediately when a transfer is initiated. The actual movement of funds between banks may occur later via ACH or instant rails.
P2P transactions on ACH are governed by Nacha, which manages the U.S. ACH network. Nacha has published rules since 2015 to define, secure, and increase efficiency for P2P transactions on the ACH network.
In the U.S., the Consumer Financial Protection Bureau (CFPB) oversees P2P payment service operations to ensure consumer protection, while the Federal Trade Commission (FTC) monitors how these services are marketed and advertised.