Services like Venmo and Zelle are changing the way people pay each other. If you owe your roommate for rent or a friend for lunch, P2P payment systems could be an easy way to transfer funds easily and take IOUs out of the equation.


P2P payments are handled completely electronically through a P2P service. With these types of services, you have a username and account set up through their system. This allows you to send money electronically to any of your friends who also have an account with the same P2P service. You can both send and receive funds, and even request funds from your friends.

While it’s a quick way to send a few bucks, you may want to read each P2P payment system’s Terms and Conditions before using a P2P service. Each provider will explain scenarios in which you should or should not use the service (i.e. paying a friend, buying something purchased online, purchasing from Bidding sites, etc.). Depending on the purpose of your transaction and the person you are sending your payment to, these types of transactions could be high risk.

When should you use caution before using a P2P service?

  • When you need to send money to someone you don’t know.
  • To pay for items purchased online on bidding or sales websites.
  • For business-related transfers.

How can you protect yourself from P2P scams?

  • Use two-factor identification when sending money.
  • Sign up for notifications on every transaction.
  • Be sure you are sending your money to the correct person.
  • Be certain the transaction you are sending is correct – once sent you are not guaranteed the funds back.

Here at Founders, your financial security is one of our top concerns, and we want you to be informed. When using P2P payment systems, there is more risk involved, so please refer to the terms and conditions of the P2P service you are using for important information regarding your transaction. While there is always risk involved in doing P2P transactions, we want to educate you so that you can be alert, aware and avoid any potential financial security compromises.