Peer-to-peer (P2P) payment apps are easy to use, typically free to download, and can be used for anything from splitting up a dinner bill to paying a friend for your half of the rent. You’ve probably experienced the ease and convenience of Venmo, Zelle, PayPal, and other P2P apps when paying friends. While these solutions are great for personal use, they don’t generally provide the same advantages to small businesses.
In this article, you’ll learn how peer-to-peer payments work and how FINSYNC Pay is bringing the ease and convenience of P2P to the world of business payments.
How Do Peer-to-Peer Payments Work?
P2P payment apps enable the transfer of funds between two parties using their individual banking accounts or credit cards through an online or mobile app. They’re designed to make life easier. The typical steps for a P2P payment are:
1. Download the app and create an account
2. Link your bank account
3. Locate the account of the person you’d like to send payment to
4. Send payment
The recipient will generally receive the money immediately in their Venmo or PayPal account. Transferring to a bank account typically takes 1-3 days.
P2P payment solutions have grown in popularity for several important reasons.
Convenience
Traditional bank transfers can become complicated and take up unnecessary time. Writing a paper check requires you to mail it and wait 7 to 10 business days for processing.
Compared to making a payment via check, cash, or ACH, P2P apps significantly cut down the number of steps and the time it takes to send and receive funds.
P2P payments are extremely convenient for paying people who aren’t set up with merchant accounts (this generally includes all of your friends, but it also includes a lot of the vendors you may be doing business with).
Security
Unlike direct payments made by ACH, check, or credit card, P2P apps don’t share bank or credit card information between the people sending and receiving money. You only need to know the recipient’s account name within the specific app you are using. This helps keep your personal information more secure.
FINSYNC Pay: Streamlined Like a P2P App with Enhancements for Business Payments
What if there was a payments platform with Venmo-like convenience for your business? That would be like having your cake and eating it, too. If paying a vendor for a service was as easy as paying a friend for dinner, you’d be able to focus on growing your business instead of writing, collecting, and processing paper checks.
FINSYNC Pay is a payments solution that makes paying your vendors easier than paying a friend for your half of the check. That’s because FINSYNC Pay is like no other B2B payments platform.
FINSYNC Pay gives your business the power to pay vendors faster, easier and with less processing. You can even use your credit card for traditionally cash-only payments, which enables you to maximize credit card rewards and simplify your business finances.
Using FINSYNC Pay is as simple as the P2P payments you’re probably familiar with. You can send a payment in three simple steps. The recipient doesn’t even need to be a member of the network. To send a payment:
1. Sign in to FINSYNC account
2. Enter a vendor email
3. Optional: attach the vendor’s invoice or other remittance detail
4. Send payment
Bring Business Benefits to Peer-to-Peer Convenience
Increasing the convenience of your B2B payments can provide significant value to your business. What makes FINSYNC different from traditional P2P payment apps? Why aren’t all small businesses using Venmo to pay their vendors?
Simplifying Vendor Payments
Unlike traditional P2P payment apps, your recipient doesn’t need to be a network member. They simply click on the link in the email and enter where they’d like to receive the money, which could be a direct deposit or even a check if they still prefer a mail-based process. If they’d like, they can create a free account to streamline this process even further and keep a historical record of transactions and their supporting documentation.
Simplicity for your vendors means simplicity for your business. With FINSYNC Pay, no “switching” is required. Your vendor’s integrated email notifications, free portal, and access to related documents only enhance their ability to be efficient.
How FINSYNC Can Help
FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.