Which statement about Peer-to-Peer (P2P) transfers is true?

• A. P2P transfers require a bank transfer in real time
• B. P2P transfers have no limits
• C. P2P transfers are electronic money transfers between two individuals through a payment application
• D. P2P transfers have number and dollar limits set by providers

Answer: (C)

P2P transfers are electronic money transfers between two individuals conducted through a payment application. This definition captures the essential idea: money moves digitally from one person to another using a mobile or online app, often funded from linked bank accounts, cards, or wallet balances. The key distinction is the method (a payment app) and the participants (two people), not necessarily the speed of transfer or any imposed limits.

While some services may offer real-time transfers or impose limits, those are characteristics of how the system operates rather than what defines P2P transfers. The statement that best fits is that these are electronic transfers between two individuals through a payment application because it directly describes the typical mechanism and participants involved.