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

• A. P2P transfers involve no banks at all
• B. P2P transfers always settle instantly
• C. P2P transfers are electronic money transfers between two individuals through a payment application
• D. P2P transfers cannot have limits

Answer: (C)

P2P transfers are electronic money movements between two individuals using a payment application. The app serves as the intermediary, linking the sender’s funding source (bank account, card, or stored balance) to the recipient’s account and moving the funds without needing a traditional bank transfer you initiate directly with a bank. Banks or payment networks may still be involved behind the scenes to settle the funds, but the user experience centers on the app.

This is why the statement is the best: it correctly captures that P2P transfers happen between people through a payment app and are electronic. The other ideas aren’t accurate: these transfers often involve banks behind the scenes, they don’t always settle instantly, and they can indeed have limits depending on the platform and verification level.