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Insights and Expertise

associated with credit card transactions, companies— Navigating the P2P landscape
especially small and medium-sized enterprises (SMEs)—
can streamline operations and improve margins. This There’s no denying that P2P payments have revolutionized
cost-efficiency can be a game-changer in sectors like the way we transfer money and make purchases.
ecommerce, food delivery and retail, where quick, hassle- The convenience they offer has reshaped consumer
free payments are crucial for securing sales. expectations and opened up new opportunities for
businesses. But, the risks shouldn’t be ignored.
However, the risks that affect consumers—phishing,
accidental transfers, and impersonation – also extend Both consumers and businesses must stay informed
to businesses. Without adequate security measures, and proactive when using P2P payments. Take care, and
companies can expose themselves to fraud, reputational implement measures like multi-factor authentication,
damage, and potential legal challenges. verifying transaction details, and only engaging with
trusted parties to mitigate some of the risks. For businesses,
Additionally, some P2P platforms lack the buyer investing in robust fraud prevention tools and educating
protections that come with traditional payment methods, their customers about safe practices are also important
such as credit cards. This lack of recourse in disputes or steps to take.
fraud cases can be a massive drawback for businesses
dealing with high-value or sensitive transactions. As P2P payments continue to grow in popularity, striking
the right balance between convenience and security is a
The decision to adopt P2P payments should therefore be must. By understanding the risks and taking appropriate
carefully weighed. For some businesses, the benefits of precautions, businesses and consumers alike can harness
increased sales, reduced transaction fees and improved the benefits of this revolutionary technology without
customer satisfaction will outweigh the risks. For others, falling victim to its pitfalls.
particularly those in industries where security and
reliability are paramount, it may make more sense to limit Zaki Farooq, is co-founder and chief technology officer at PayFuture,
P2P payment options or avoid them entirely. www.payfuture.net, which was designed from the ground up to offer
market changing innovative features and technology. payment technol-
ogy. Contact him via LinkedIn at linkedin.com/in/zakifarooq.
Commercialization
Program

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