Kanishka NaikP2P payment platforms are optimized for low-value, high-volume transfers between known contacts. They apply streamlined fraud detection and fewer compliance layers than systems used for institutional transfers.
The International Center for Law & Economics notes that P2P systems reduce counterparty risk for recipients and can lower setup costs for individuals and small merchants. However, they increase counterparty risk for senders, as many transfers are irrevocable.
P2P platforms include both private-sector services like Venmo, PayPal, and Zelle, and public-private systems such as India's UPI. Central bank-operated options include Brazil's Pix. Each system reflects different governance and settlement design choices.