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Peer-to-Peer

Penny (2001) is of the opinion that the generic P2P business model requires P2P payment infrastructure and support. Almost all goods and services bought on the Internet are currently paid for by credit, debit and/or charge cards, although these are either not available to all, or not very appropriate for all e-commerce transactions. Generally, young consumers do not ’carry plastic’ or do not qualify for a credit card. In consumer-to-consumer e-commerce, and on-line auctions where often neither party is an established business, P2P provides a safe, simple, fast way of settling small value transactions. Although the growth of the Internet and e-commerce has transformed many aspects of both the global financial services industry and individual domestic markets, its growth has lagged behind in payments. Andrieu (2001) states that the developments in credit and debit cards have not considered peer-to-peer transactions, a form of payment that is critical for the development of some forms of commerce such as on-line auctions.

However, as predicted by Penny (2001), with developments and acceptance in person-to-person payments services the need to use banking services and credit card providers to settle transactions will be reduced. The impact is expected to lead to:


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