Which payment method allows you to send money directly to a friend’s account?
a) Gift Card
b) Prepaid Card
c) P2P App
d) Cash
The correct answer and explanation is:
The correct answer is c) P2P App.
A Peer-to-Peer (P2P) App is a payment method that allows users to send money directly to a friend’s account. Examples of P2P apps include PayPal, Venmo, Cash App, and Zelle. These apps enable users to transfer funds instantly to another person using their email address, phone number, or username, without needing to exchange physical cash. The process is simple: users link their bank accounts or debit/credit cards to the app, and then they can send money securely and quickly.
The key advantage of P2P apps is that they provide a convenient and fast way to pay friends or split bills. For instance, if you go out to eat with friends and need to share the cost, you can send them your portion using a P2P app, often without any fees involved if linked to a bank account. Most P2P apps also offer additional features such as the ability to request money, keep transaction history, or even buy and sell cryptocurrencies.
Other payment methods like gift cards and prepaid cards are not designed for direct transfers to a friend’s account. Gift cards can only be used for purchases, and prepaid cards function similarly to debit cards but require preloaded funds. Cash, while also a direct method of transferring money, is less secure and practical for digital transactions compared to P2P apps, which are designed for instant electronic transfers.
Overall, P2P apps have gained significant popularity because they simplify the process of sending money between individuals, making them one of the most common methods of personal money transfer in today’s digital world.