The Difference between IMPS P2A and P2P
Last Updated: 2023
Introduction:
IMPS (Immediate Payment Service) is a popular payment system in India that allows individuals to transfer money instantly through their mobile devices. Two common transaction types under IMPS are P2A (Person to Account) and P2P (Person to Person).
What is IMPS P2A
IMPS P2A refers to a transaction method where an individual can transfer funds from their bank account to another person’s bank account. This type of transaction is typically used for salary payments, loan disbursements, and other business-related transfers.
What is IMPS P2P
IMPS P2P, on the other hand, allows users to transfer money directly to another person’s mobile number or virtual payment address (VPA). This method is commonly used for personal payments, such as splitting bills, sending money to friends or family members, and making online purchases.
How are they Different
The main difference between IMPS P2A and P2P lies in the recipient’s account. In P2A, the funds are transferred directly to the recipient’s bank account, which requires the sender to know the recipient’s bank details such as account number and IFSC code. In P2P, the funds are linked to the recipient’s mobile number or VPA, making it more convenient for personal transactions.
Why Choose IMPS P2A
IMPS P2A is beneficial for business-related transfers as it offers a secure and direct way to send funds to a specific bank account. This method ensures the transaction is traceable, reducing the risk of fraud or errors. Additionally, P2A transactions can be easily reconciled with the recipient’s bank statements.
Why Choose IMPS P2P
IMPS P2P is favored for personal transactions due to its simplicity and ease of use. Users can transfer money to anyone by simply knowing their mobile number or VPA. This eliminates the need for complex bank account details, making it convenient for day-to-day payments.
When to Use IMPS P2A or P2P
Deciding between IMPS P2A and P2P depends on the purpose of the transaction. If you need to make a salary payment, loan disbursement, or any business-related transfer, IMPS P2A is the suitable choice. On the other hand, if you want to split bills, send money to friends, or make personal payments, IMPS P2P is the ideal option.
Where
IMPS P2A and P2P can be used within India through various banks and financial institutions that offer IMPS services. These include State Bank of India, HDFC Bank, ICICI Bank, and more. Transactions can be conducted through mobile banking apps or internet banking portals.
Who
Individuals, businesses, and organizations in India can utilize IMPS P2A and P2P for their financial transactions. Employees receiving salaries, businesses making payments to suppliers, and individuals sending money to friends are among the users of these services.
Sources:
- [1] « IMPS » – Official Website of National Payments Corporation of India – Accessed on July 22, 2023
- [2] « IMPS: A Complete Guide » – The Economic Times – Accessed on July 22, 2023
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