Best P2P Payments Apps

Here is a situation that almost everyone has faced more than once- you are out on lunch with your friends, split the bill and well, you don’t have the cash to pay your share. Then someone foots the bill and you pay them later. But how? And that’s just one of many use cases where you might need to pay someone (generally small amounts) across the table or across the country. That’s where P2P payment apps come into the picture. These are just like regular banking apps except with much lower complexity.

What P2P apps are for?

Generally speaking, P2P apps are most suited for non-cash micro-transactions. Like to split all kinds of bills, rent, while keeping a tab on all your monthly expenses.

How can you use P2P applications?

These are just like any other banking application where you initially seed your bank account and then make requite transactions. There are, however, two points worth noting here:

  • Most applications transact through debit cards only. Some might offer credit card facility but that would incur additional fees.
  • The recipient must have a bank account.

How do P2P payments work?

If you are skeptic about peer-to-peer money transfers, here is a simplified version of the entire process:

1. Create an account

Both the sender and recipient should have the app installed and created an account. Some applications allow cross-platform transactions in which case the receiver doesn’t need to have the app.

2. Seed debit card

Then you need to feed your debit card details and the app would be linked to your concerned bank account.

3. Make payments

All you need to do is enter the mobile number/email ID of the receipt to send funds. The amount would be debited from your bank account and deposited in the recipient’s bank account.


This is the app with the simplest interface for P2P money transfers. A product of PayPal, it also has a social feature where it displays who your friends are paying and what for- which can be disabled if you prefer privacy.

Google Pay Wallet

Like all other Google’s services, this is a free product that integrates well with other Google applications. For instance, it can be used with Gmail to transfer funds via email without any additional charges.

Cash App

One of the most popular and now known as “Square Cash”, can be used to transfer funds at no additional cost. The application also has a wallet to store funds or you can directly use your bank account. One of its key highlights is that it can also be used to buy and sell Bitcoin.

Facebook Messenger

As most of your friends would already be on Facebook Messenger, it is perhaps the most convenient way to pay them. Sending money via this app is as simple as sending a text. There is just one caveat- the receiver must also have linked a debit card to their Facebook Messenger to be able to receive funds.


Now, this is an app that doesn’t need an introduction. Being the pioneer in digital payments and wallets, the PayPal application is one of the best for P2P transfers. It has an in-built wallet and can even be used to send funds across international boundaries. So why isn’t this app on the top of our list? Well, it’s expensive to use. Along with the usual percent transaction fee, it also levies a flat fee for each of the transfers thus putting off many users.

Closing remarks

Apart from these popular apps in the US, there are also other markets like India where P2P payment apps have become immensely popular and extend to P2B transactions as well. In fact, it is currently one of the most revolutionary markets for the fintech sector. So if you wish to build a P2P app, hiring best Indian app developers would yield the best possible results.

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