What Are P2P Payments and How You Can Profit From Them

P2P transactions allow you to send and receive funds to and from any business party around the globe within seconds – no need to set up expensive foreign currency accounts at your local bank. Learn more about how P2P payments streamline your payment processes and contribute to the bottom line of your business.

What Are P2P Payments?

P2P payments (peer-to-peer payments) refer to electronic transactions from one person or business to another. These P2P transactions are superior to traditional bank transactions, as customers are not required to set up expensive foreign currency accounts and can send and receive funds within seconds free of charge.

P2P payments allow you to transfer funds via an app on your smartphone or a dashboard on your browser. In order to receive all benefits related to P2P transactions, all you need to do is to link your account or card to the P2P network.

If you invite your suppliers and partners to your personal network, you can instantly transfer money at no costs and no required minimum transaction volume. With P2P payments, you can substantially streamline your payment processes.

How Do P2P Transactions Work?

Let’s assume you need to pay 100’000 Chinese Yuan or 14’000 USD to one of your suppliers. As a foreign company outside the Eurozone, hefty fees apply to conduct foreign currency transactions. Not only that, you also have to wait for several working days until the payment is finalised.

P2P transactions, on the other hand, allow you to skip the lengthy banking formalities. As both parties have linked their account to the P2P network, you are able to make instant payments with just a single click. You can even choose the currency you want to pay your supplier. Intuitive tools allow you to change your home currency to any other currency, often including exotic ones. Even better, you receive much more favourable rates compared to most traditional banks.

Further, even though your bank account is connected, your suppliers (or any other party) will not have access to this information, adding another layer of security.

Advantages for SMEs

• Easy transactions without local IBANs: To send and receive money via regular bank transfers, you need to cope with multiple IBANs or SWIFT numbers. For example, if you create a foreign currency account, you will receive a complete account for each foreign currency, including IBAN, administrative work and the corresponding fees. P2P payments are different – you don’t need local bank accounts or IBANs to make payments like a local. Therefore, costs and bureaucracy are much less compared to traditional banks.
• Instant transactions 24/7: International bank transfers can take up to 5 working days. P2P payments, on the other hand, take just one single click for the money to arrive instantly at the beneficiary, no matter whether the transaction takes place on weekends or bank holidays.
• Commission-free transactions without hidden fees: Most bank accounts allow account holders only to hold one local currency, as foreign currencies require more bureaucracy. Further, multiple banks and intermediaries are often required for international bank transfers, which results in higher payment costs and extra fees. With P2P transactions, the money stays within the same network, therefore P2P providers usually don’t apply charges.
• Multi-currency payments with 1 account: With P2P payments, you don’t need to set up a new foreign currency account for each and every currency. Providers of P2P transactions enable you to transfer and receive foreign currencies with 1 single account.
• No intermediaries and bottlenecks: When it comes to financial transactions, banks are the bottlenecks. For international bank transfers, not only the sender’s and beneficiary’s bank are involved, but often also intermediaries, which further delay and overprize the entire process. Further, you need to factor in bank holidays and weekends, so that the actual time when your money reaches the beneficiary can easily exceed one week. P2P transactions eliminate the bottlenecks of your financial processes.
• Immediate payment confirmation: You want to know whether your money has arrived safely? You will get an immediate payment confirmation after you’ve hit the “Send” button, knowing that your money has arrived in your beneficiary’s account.

How to Create a P2P Network with amnis

You want to profit from the advantages P2P payments can offer to your business and explore the benefits of this convenient B2B payment method? Setting up your own P2P network is as easy as sending and receiving money.

To invite new business partners to your amnis PEER network, you can just go to “Contacts” and click on “New contact”. You can even invite existing beneficiaries by clicking “Invite to amnis” in the contact section. You are free to customise your message before sending out the invitation.

To pay your PEERS, just log into your amnis account, go to “Payments”, click on “New payment” on the top left and choose the beneficiary as well as the PEER payment method. P2P payments with amnis have never been easier and cost-efficient.

By creating your own PEER network, you can strengthen the relationship with existing suppliers and reduce unnecessary bottlenecks. Did we mention that our P2P transactions with amnis are completely commission free, no hidden charges? You will save valuable time and money that you can reinvest to further grow your business.

Join amnis now and set up your own Peer to Peer network!

amnis WebApp combines all the tools you need for optimizing international money transfer and currency exchange. You can send and receive international payments without any hidden fees. With a multi-currency business debit card, you can pay wherever your business takes you. Moreover, bank opening hours no longer play a role. You can access our platform whenever you want and exchange currencies even on weekends – 24/7. Create your free demo account, it only takes 30 seconds, and test all WebApp functions completely non-binding: