What Are Peer-to-Peer Payments?

Key takeaways about P2P payments

P2P payments allow you to transfer money directly to individuals without cash or physical cheques.
In Singapore, options like PayNow and mobile wallets make this fast and effortless.
Security is enhanced through verification steps like OTPs and Singpass.
Transfers are often free, though some platforms may charge fees.
Always ensure you send money to trusted parties.

What are P2P payments?

Peer-to-peer payments, or P2P payments, are digital transactions where money moves directly between individuals. Instead of handling cash, Singaporeans often use services like PayNow — which links to bank accounts or NRICs — or mobile wallets such as GrabPay and Singtel Dash. Everyday examples include splitting bills after meals, sending allowances to family members or paying freelancers for services. These transactions are often completed in seconds, making them incredibly convenient.

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How P2P payments work

Using P2P payment services in Singapore is straightforward. First, link your bank account, mobile number or email address to your chosen app. When you need to send money, select the recipient — usually via their NRIC, mobile number or a QR code. Enter the amount and confirm the transaction. Depending on the platform, additional authentication like OTP verification or fingerprint login may be required. Wallets like GrabPay may need to be topped up beforehand, while bank-linked services like PayNow directly deduct from your account.

» You can also use your credit card to transfer money

Which P2P service should you use?

There are plenty of options in Singapore to suit different needs.

When choosing a service, consider integration with your bank, daily transfer limits, and any added perks like cashback or rewards points.

Here’s a table of popular P2P services in Singapore:

Service	Bank integration	Daily transfer limit	Extra features
PayNow	All major banks	$5,000 (default, can raise)	Instant transfer via NRIC, mobile number or UEN
DBS PayLah!	DBS/POSB accounts	$5,000 (linked to PayNow limit)	Cashback promotions, bill payments, QR code scanning
OCBC Pay Anyone	OCBC accounts	$5,000 (linked to PayNow limit)	Instant QR payments, integration with OCBC banking
UOB TMRW	UOB accounts	$5,000 (linked to PayNow limit)	Peer transfers, lifestyle rewards integration
GrabPay Wallet	Standalone (top-up needed)	$5,000 (fully verified)	GrabRewards points, merchant payments, in-app features

Are P2P payments safe in Singapore?

Generally, P2P payments in Singapore are secure. Apps like PayNow and PayLah! comply with regulations set by the Monetary Authority of Singapore (MAS) and often require Singpass logins and two-factor authentication. Still, risks remain. Mistakenly sending money to the wrong person can be irreversible. Scams, particularly phishing attempts via SMS, are another concern. Always remember that banks are unlikely to reverse PayNow transfers once made, so vigilance is key.

How do I safely make and receive peer-to-peer payments

Use authentication security

Always activate the strongest security settings available on your P2P app. These usually include requiring a PIN code, biometric recognition (such as fingerprint or facial ID) and multi-factor authentication (MFA) before any transaction can go through. This ensures that even if someone gains access to your phone or login details, they cannot easily send money without passing multiple security checks.

Opt for notifications

Stay informed and in control by enabling transaction notifications. Most apps allow you to receive instant alerts whenever money is sent or received. This not only helps you track your spending, but also quickly flags any unauthorised transactions — so you can take action immediately if something looks suspicious.

Transact only with people you know

While it may seem obvious, only use P2P services with trusted contacts. Scammers can impersonate friends or pose as legitimate businesses, especially through phishing attempts or fake listings. If you are paying someone you do not know personally, proceed with extra caution and verify their identity first. For business transactions, consider platforms with buyer or seller protection features.

Take care when entering data

P2P payments are often irreversible once sent. This makes it especially important to double-check all recipient details — such as mobile numbers, NRICs or email addresses — before confirming payment. A simple typo could send your funds to the wrong person, and in many cases, the bank or platform may not be able to retrieve the money.

» Always protect yourself from scams

How quickly do peer-to-peer payments arrive?

Most P2P transfers in Singapore are instant. PayNow and bank-linked apps usually move funds within seconds. Mobile wallets such as GrabPay and Dash also process transactions rapidly, though top-ups from credit cards or during system maintenance could cause slight delays. For international transfers, speeds may vary depending on the service used.

» If it suits you, you could switch entirely to a mobile wallet

How much do peer-to-peer payments cost?

The good news is that domestic P2P payments are often free. PayNow transactions via banks generally have no charges. Mobile wallets also allow free transfers within their ecosystem, though fees may apply when cashing out. For international services like PayPal or Western Union, expect transaction and currency conversion fees. Credit card-funded transfers may also incur cash advance charges and interest.

» Find out if you’re one of the 5 types of people who should use an e-wallet

Are there limits on peer-to-peer payments?

Yes, most platforms have transfer limits. PayNow defaults to a $5,000 daily limit, which can be manually increased. Fully verified wallets, such as GrabPay, also offer $5,000 daily limits. International transactions, however, may be subject to further restrictions and compliance checks.

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Frequently asked questions about peer-to-peer payments

What is the best P2P payment platform?

The best platform depends on your usage. For seamless bank transfers, PayNow is the most widely supported. For daily spending with added perks, GrabPay is a strong choice. For international transfers, PayPal or Western Union may be better suited, albeit with fees.

What are the risks of P2P payments?

Users should be mindful of sending money to incorrect recipients, which may be irreversible. Scams — especially phishing — are another risk. Finally, using unsecured devices or public networks can expose your data to breaches.

Is PayPal a P2P payment service?

Yes, PayPal is considered a P2P platform, mainly for international and business-related transactions. Users can link bank accounts or credit cards to send funds. It also offers buyer and seller protections, though fees often apply. For local transfers, it is less commonly used compared to bank-linked options like PayNow.

Methodology

Understanding Peer-to-Peer Payments in Singapore