The way people move money is changing fast—and peer-to-peer (P2P) payments are leading the charge. Whether it’s splitting a dinner bill, paying rent, or sending a gift, platforms like Venmo, Cash App, and PayPal have become household names. With just a few taps on a phone, users can instantly transfer funds from one account to another.
In 2025, most of us not only know about this tech but have already used it ourselves. As digital habits grow and consumers seek faster, more convenient options, P2P payments are exploding in popularity. What many have missed is how it’s transformed the consumer business landscape too.
Increasingly, P2P payments are used for mainstream consumer transactions, rather than just sending money. As we tend to see with new tech, many payment processors have struggled to keep up with a powerful new preference, and their merchants are missing out.
Let’s take a look at the growth of the industry, how it’s changing the payment landscape, and why merchants (and their POS servicers) should be paying attention.
The Growth of Peer-to-Peer Payments
P2P payments have evolved from a niche convenience to a dominant payment category. According to eMarketer, over 70% of U.S. smartphone users will make at least one P2P transaction in 2024. The total transaction volume is expected to exceed $1.6 trillion this year—an increase of over 30% since 2021.
Source: eMarketer
This surge isn’t limited to younger demographics either. While Millennials and Gen Z were the early adopters, older generations have embraced the tech for its simplicity and speed, especially post-pandemic.
At the same time, banks and payment platforms have built P2P features directly into their apps. Zelle is now integrated into hundreds of banking apps, and fintech platforms have continued to innovate with crypto options, payment requests, and group payments.
More importantly: every payment provider worth its salt is offering the payment option to merchants and their customers, from physical kiosks to online storefronts.
Why Businesses Should Care
At first glance, P2P payments seem like something that happens between friends, maybe when ordering online, and definitely not applicable at a physical checkout. That’s no longer the case.
Consumers are increasingly expecting the same seamless P2P experience when they pay businesses for clothes, food, or experiences, whether online or in person. Smart businesses already accept payments through Venmo or Cash App as a low-fee alternative to traditional POS systems. Others are integrating P2P-style payments directly into their checkout processes through QR codes and payment links.
Accepting P2P payments can reduce transaction fees, shorten settlement times, and tap into consumer habits already formed by their everyday experiences. More importantly, it can help merchants reach younger, mobile-first customers who prefer these tools.
Security in the P2P Payment Era
With the convenience of P2P payments comes the challenge of maintaining trust and security. Unlike traditional bank transactions, P2P payments may be irreversible, making them a target for fraudsters and scammers.
Most leading P2P platforms have implemented strong security measures, including encryption, two-factor authentication, and biometric verification to protect users. Fraud detection algorithms monitor for suspicious activity in real time, and platforms have improved user education around phishing and impersonation scams.
Still, consumers and merchants alike need to stay vigilant. Encouraging secure behavior—like verifying usernames before sending funds or using platforms’ built-in privacy settings—can prevent common missteps.
Key Takeaway: P2P is More Than Personal
Peer-to-peer payments are no longer just for friends and family. As the technology matures and adoption expands, businesses must recognize the shift in consumer expectations. This is true if your storefront is physical or online, if you sell salads or software.
The P2P era is here—and it’s not slowing down anytime soon.
Where COCARD Comes in
By offering flexible, secure payment solutions that reflect how people actually want to pay, COCARD empowers merchants to thrive in the modern economy.
As a leader in payment processing, COCARD is closely watching the P2P payment space—and we empower our merchants to tap into it. Our solutions are designed to meet customers where they are, integrating modern payment channels while maintaining the security, reporting, and scalability that merchants need.
Whether it’s offering contactless NFC options, QR code payments, or seamless integrations with digital wallets, our systems are flexible enough to adapt as trends evolve. Since our founding at the beginning of the New Millennium, we’ve made sure our merchants are first to the future.
For our member-owners, the message is simple: P2P payments are changing how people think about money—and your merchants will need modern tools to keep up. COCARD gives you what you need to deliver.
Get in touch today to supercharge your payment suite!