How to make money using P2P transfers on your website

Transfers from card to card are gradually becoming the simplest, fastest and most convenient way to transfer funds. However, it is not so easy to independently organize such a transfer on your website: in order to process payment data, the company must have a PCI DSS certificate, which confirms the resource’s compliance with the Payment Card Industry Data Security Standard. Fortunately, there is a way to quickly and easily add the ability to transfer money from card to card (P2P transfers) to your website or mobile application and make money from it. How to do this - read our article.

Let's say you have a resource where you post your projects and collect donations, that is, money transfers are non-commercial in nature.

The simpler the process of transferring funds, the greater the chances of receiving money from sympathizers. From this perspective, transferring from card to card, accomplished in a couple of minutes, is simply ideal. But how to organize it without getting involved in obtaining certificates? It’s very simple: embed a ready-made translation tool into your website that meets the required level of security.

A similar service was developed by the PayOnline processing center, which is the official payment provider of VISA and MasterCard and has a PCI DSS certificate.

As you may have guessed, transfers from card to card will be made not on the website, but on the PayOnline payment page, where users wishing to transfer funds will be redirected.

So, at the time of making the first transfer, the user of the site or application is redirected to the PayOnline page, where he must link his card data to an account on your resource and receive a unique RebillAnchore (part of the encrypted identifier that calls the card data).

Linking a bank card

After this, the user will not have to enter his card details every subsequent time. For him, all transfers will look as if they were made directly from the account on the website or in the application by clicking on the “Pay” button.

The simpler the process, the more money you can make. But there is one limitation here: since the transfer from card to card is free of charge and cannot be recalled, the user must undergo verification using the 3-D Secure security protocol when making a payment. Accordingly, only cards subscribed to 3-D S can be linked to your account.

And, of course, don’t forget about the commission for using the P2P service. When making each transfer, the fee for its use is 1.5% of the payment amount plus 20 rubles.

How to make money on P2P transfers

There are several ways to make money by transferring funds.

One of the interesting and clear examples of commercial use of the service can be making transfers from card to card. For example, before ordering any product or paying for lunch at a restaurant, users will be able to chip in with each other by transferring money from card to card, and then make the payment.

A good example of implementing such a solution is the Splittpay application. Its slogan alone can already explain the whole essence of the business: “Split the check at a restaurant with friends.”

This application allows you to solve a well-known problem for food lovers in large groups - paying a bill that contains orders from several people for different items.

One person, using the application, recognizes the receipt and sends how much they must pay to the smartphones of all participants in the gathering.

They, in turn, are not looking for cash “for payment”, but transfer money to his card from their card (this part of the service is provided by PayOnline).

Such features can become a feature of your application and increase the loyalty of your audience. The same can be said about large portals with high traffic.

There is also a more direct way to make money by transferring from card to card - taking a commission for transferring funds. In other words, act as an agent.

Nowadays, microcredit services, the so-called “bank killers”, which allow users to borrow money from each other, are becoming increasingly widespread.

A striking example of such a business is the BezBank resource, which uses P2P payment technology from PayOnline. This is a virtual financial platform that allows you to obtain borrowed funds without going to the bank.

Such resources provide users with a platform and a convenient tool for profitable investment of their funds and obtaining quick loans without unnecessary documents and delays, charging their own percentage for transfers. However, to earn money in this way, you must register an individual entrepreneur or legal entity.

The total cost of transferring money from card to card consists of the commission of the payment provider providing the transfer tool and the site’s markup.

So, we have looked at what P2P transfers are for and how it works. Now it's time to talk about how to connect your site to this service.

What is network architecture

Network architecture is the principle by which information is exchanged on the Internet. There are two main types of architectures: client-server and P2P.

When you communicate with a person live, you exchange information directly. But if you chat on WhatsApp, the process turns into a long chain of actions. Two steps in this chain are changing the color and number of checkmarks under each message. The server here is a messenger that stores, processes and transmits information. And the client is the interlocutors who send and receive information.

Communication in life and communication on WhatsApp

In the WhatsApp example, the architecture is called client-server. This is the most common type - since the 1970s, all sites on the Internet have worked this way.

An alternative to this method is a network in which people communicate with each other without an intermediary. On the Internet, such an architecture was only implemented in the 1990s. Each device in such a network can simultaneously perform both the role of a server and the role of a client. This architecture is called P2P.

P2P is a network in which there is no central element and information is transferred directly. There are other names for this architecture: “peer-to-peer networks”, “peer-to-peer networks”, “peer to peer”. All these terms are equivalent.

Let's take a closer look at the different types of P2P networks.

Easy to connect - easy to use

To use the solution, you should start by submitting an application for connection on the PayOnline website. At the time of registration, each site is assigned a personal manager who helps in all matters related to the preparation of documents, provides an API library and accompanies the resource through all steps, right up to making the first payment.

This allows you to connect easily and quickly - no longer than 15–20 days.

If you want to integrate card-to-card money transfers into the application, you can use two methods: integration of the payment form through the built-in browser and integration directly into the application.

In the first case, the user fills out the payment form and the 3-DS code entry form in the built-in browser (since the browser is built-in, the user does not have to leave the application to pay). In the second case, the payment form is integrated directly into the application, but you still have to enter the 3-DS code in the built-in browser.

As for the payment form interface, you can always order an individual design, so that the form in the built-in browser will fully comply with the application design concept.

It doesn’t matter what platform your website or mobile application is on and who you are - a legal entity, individual entrepreneur or individual. In any case, you can easily connect PayOnline, and your users will have the opportunity to quickly and safely make P2P transfers through the service or mobile application.

Application of P2P in other areas

P2P was invented by IT specialists, but economists also use a similar approach. In finance, this term refers to the exchange of digital assets without intermediaries. P2P platforms connect buyers with sellers and lenders with borrowers.

The Bitzlato P2P exchange is a message board for buying and selling cryptocurrencies. Users find each other and determine the terms of the transaction personally. For example, you can find a person who wants to sell Bitcoin at the current rate and receive money on a Sberbank card. Bitzlato will only help protect the transaction by blocking the cryptocurrency for the duration of the transaction. Regular exchangers are less profitable, as they charge an inflated exchange rate and charge commissions on each transaction.

Advantages of the P2P Wallet platform

Russian-language and clear interface. Friendly contact center that does not require contact in English.

Constantly expanding list of supported payment systems. Exchange cryptocurrency for rubles through a card of any bank. Any user can submit a request to add a new payment system. Low commissions.

Easy to learn API for developers and traders. Mobile application for iOS and Android. Telegram bot. With the ability to create, view, complete orders, and an alert system.

A little about the functionality of P2P exchangers

The classic format of the site is Buy and Sell bulletin boards, where buyers and sellers describe in detail what minimum and maximum amounts they are willing to exchange, through which payment systems.

After choosing the exchange direction (Bitcoin to Qiwi, Bitcoin to Dollars and hundreds of other options), select a coin, and then the final direction.

Having selected the desired advertisement, contact the counterparty via chat and specify the details for the transfer, for example, bank card number. The cryptocurrency involved in the transaction is frozen by the platform. This avoids fraud on the part of the buyer or seller. Until you confirm that the money has been received, the coins will be “held”.

In the event of force majeure, moderators of the p2p service are involved and quickly establish the fairness of the transaction. For our part, we guarantee a quick and fair trial.

The system measures the speed with which the merchant answers questions, transfers funds and approves the completion of exchanges. Active accounts are marked with lightning, which allows you to exchange cryptocurrency with a minimum of delays.

Non-custodial & Custodial trading

Even if you've been involved in cryptocurrency for a while, you may not have heard these terms used before or may not know what they mean. However, the importance of non-custodial trading is increasing as the cryptocurrency landscape evolves, along with lessons from significant events in cryptocurrency history such as the collapse of Mt. Gox taught us.

Custodial trading can be found everywhere; You've most likely heard of platforms like Coinbase that use this form of trading. If a platform takes control of your funds, you can consider it a custodial exchange, and the trading you do on that exchange will be custodial in nature. Non-custodial exchanges are much less common, but are becoming increasingly popular. Over time, many other custodial platforms became insolvent or experienced other problems that resulted in the loss of significant funds held on behalf of their users.

P2P trading can be a great option for non-custodial trading. While some legacy platforms have unfortunately failed to evolve to accommodate this new paradigm, some, like LocalCoinSwap, have leapt to provide users with non-custodial trading and wallets.

Checklist for non-custodial trading:

• Does the wallet or exchange give you full control over your funds?
• Do you have access to your private keys?
• Can you exchange without trusting the platform with your funds?

If the answer to these three simple questions is yes, you are likely dealing with a non-custodial exchange or wallet. Always do your research to ensure that you only ever relinquish control of information that you are comfortable with, be it control of your assets or any other personal, private or financial information.

Non-custodial trading platforms typically rely on smart contracts and Bitcoin scripts to facilitate trading. Seek transparency when using these services by checking whether their contracts are publicly available. LocalCoinSwap is a fantastic example of this; how Bitcoin trading scripts and Ethereum and token trading contracts are published for public review on GitHub along with other open source materials provided by the project.

Find out more about Bitcoin trading without deposit on LocalCoinSwap:

• Frequently Asked Questions About Non-Custody Bitcoin Trading
• Exploring Non-Custody Bitcoin Escrow

Why are peer-to-peer networks useful?

P2P networks have several features that make them useful:

• They are difficult to “drop,” that is, to take them out of working condition. Even if you disconnect one peer, the others continue to work and communicate. For the network to stop working, you must close all peers.
• Peer-to-peer networks are extremely scalable. New peers are easy to add since you don't need to change the configuration on the central server.
• When it comes to file sharing, the larger the peer-to-peer network, the faster it happens. Having the same file stored across many peers in a decentralized network means that when someone needs to download it, the file is downloaded from many places at the same time.

[edit] Modern file-sharing networks

Typical joy from the process of downloading torrents. And this lasts for months. This is a hundred times more offensive. The count went to the fourth month...

• Nowadays, the most popular file sharing protocols are BitTorrent for trackers and DC++ for local networks of providers. The advantage (or disadvantage) of BitTorrent over the same DC++ is the indispensable direct rating of users, which encourages them not only to download, but also to distribute, as well as a more correct “spreading” of the file among the uploading peers (the rarest piece of the file is always downloaded first). In addition, BitTorrent normally coexists with NAT, and sometimes even knows how to screw up NAT on both sides.
• A less popular alternative to bittorrent is the Retroshare network. The advantage is the ability to constitutionally exchange files, in secret from the provider and copywriters.

[edit] P2P and copycats

Copywriting, being a natural enemy of peer-to-peer technologies, is at the same time a stimulating factor for their development. Pure-evolution, motherfucker. Each new generation of P2P networks becomes less vulnerable to desires to stifle free file sharing.

According to the existing legislation of many countries, it is quite difficult to undermine even centralized P2P networks due to the fact that there is no illegal content on their servers. The maximum that is there is links to peers or hash files (in the case of BitTorrent). This is precisely what explains the viability of The Pirate Bay: in Sweden the legislation is the most loyal, but they can safely and officially send all Pindos copywriters to hell without any consequences for themselves, not for this reason. It’s just that if the UWB gets too screwed up, the Swedish Bank will de-anonymize a couple of account holders and start withdrawing political lulz.

In February 2009, a trial of The Pirate Bay took place in Sweden. As a result, on April 17, 2009, the four creators of the tracker received one year in prison, and they were also ordered to pay thirty million Swedish kronor (about 3.6 million dollars). Epic win for copycats. A week later it turned out that the judge was a member of three copycat companies that filed the lawsuit. The noise was so loud that you could hear it even through the zombie box...

Why do we need peer-to-peer networks? Legal use of P2P networks

Peer-to-peer networks are needed to connect computers and devices into a single network without the need to configure a server. When creating a server, it becomes expensive and difficult to maintain, and people use cheaper alternatives such as P2P. Here are some common examples of using P2P networks:

• When you connect a Windows device to a group of computers in your home, you create a peer-to-peer network between them. Homegroup is a small group of computers that are linked together to share disk space and printers. This is one of the most common uses for peer-to-peer technology. Some people might say that homegroups cannot be peer-to-peer because the computers on the network are connected to a router. However, keep in mind that the router has nothing to do with managing the network. A router does not act as a server, but simply as an interface or link between the local network and the Internet.
• When you create a network between two computers, you create a peer-to-peer network.
• Sharing large files on the Internet is often done using P2P network architecture. For example, some online gaming platforms use a P2P network to download games between users. Blizzard Entertainment distributes Diablo III, StarCraft II and World of Warcraft using P2P. Another major publisher, Wargaming, does the same with its games World of Tanks, World of Warships and World of Warplanes. Others, such as Steam or GOG, prefer not to use P2P, but to maintain dedicated servers around the world.
• Windows 10 updates are delivered both from Microsoft servers and via the P2P network.
• Many Linux operating systems are distributed via BitTorrent, which use peer-to-peer networks. Examples include Ubuntu, Linux Mint, and Manjaro.
• Finally, blockchain technology uses peer-to-peer decentralized networks to record information in a distributed ledger on all computers on the network simultaneously. (For more details, see the articles “ What is blockchain in simple terms? ” and “ What is a distributed ledger? ”)

Peer-to-peer networks are the cheapest way to distribute content because they use the bandwidth of peers rather than the bandwidth of the content creator.