Does peer-to-peer payment work in the USA — and what doesn't

Yes within the US. Almost no across the border.

The United States has one of the most active domestic peer-to-peer payment ecosystems in the world. Venmo (acquired by PayPal, with over 90 million users in the US), Cash App (over 50 million monthly active users), Zelle (operated by major US banks, processing more transaction volume than Venmo by some measures), Apple Cash (integrated into iMessage and Apple Wallet), Google Pay, and as of 2023 the Federal Reserve's FedNow real-time settlement network — collectively, Americans have at least four major ways to send money to other Americans instantly, free, and from a phone.

This is the part of the question that gets answered "yes." Within the US, peer-to-peer payments work brilliantly. The user experience that domestic P2P apps provide type a username or email, send any amount, settle in seconds — has reshaped how Americans split bills, settle small debts, pay babysitters, and tip friends.

The part that gets answered "no" is cross-border. None of these systems handle international transfers natively in the way they handle domestic ones. The American user who can split a $30 dinner bill with three friends in two seconds via Venmo is back in the world of bank wires, SWIFT codes, and "1-3 business days" the moment the recipient is in another country.

What works for US-to-US payments

Venmo. The dominant social-flavoured P2P app among Americans aged 18-44. Send to a username, an email, or a phone number; transactions are typically instant, free between users, and visible to friends in a social feed (privacy settings allow opt-out). Limited to US-issued bank accounts and US users.

Cash App. Block's competitor to Venmo, with strong adoption among younger users and a Bitcoin/investing layer that Venmo does not have. Same domestic P2P mechanic — username ($cashtag), instant transfer, free for personal transactions. US-only for sending; Cash App has UK-only operations through a separate product.

Zelle. Owned by a consortium of major US banks. Built directly into bank apps. Send to phone numbers or emails; recipients receive into their bank account directly. Settles in minutes for participating banks. Zelle is US-only and works exclusively between US bank accounts.

Apple Cash. Integrated into iMessage and Apple Pay. Send within iMessage by tapping the dollar sign; settles into the recipient's Apple Cash balance instantly. Limited to US users with US-issued payment cards.

FedNow. The Federal Reserve's real-time payment system, launched in July 2023. Provides 24/7 instant settlement between participating financial institutions. As of 2025, adoption is growing but uneven — many smaller banks and credit unions are not yet connected. FedNow is bank-to-bank infrastructure rather than a consumer-facing app.

Together, these systems provide multiple instant payment paths between any two US users. The fragmentation (which app does which person use?) is a coordination problem, not a capability gap. The capability is there.

Where US peer-to-peer payments stop working

The cross-border failure mode is consistent across the US P2P stack:

Venmo: US-only sending. Cannot send to recipients outside the US. Cannot receive from outside the US. Travelers attempting to use Venmo abroad find the app does not function as a payment surface internationally.

Cash App: US-only for sending. Cash App UK exists as a separate product but does not interconnect with Cash App US for payments — they are operationally separate systems sharing branding.

Zelle: US-only. Tied to the US banking system; cannot send or receive across borders.

Apple Cash: US-only. Requires US-issued payment cards; recipients must be US Apple Cash users.

FedNow: domestic. Federal Reserve infrastructure for US institutions only. Does not handle cross-border settlement.

For an American user wanting to send money to a friend, family member, or business contact outside the US, the options collapse to: an international wire transfer through their bank ($25-$50 fee plus FX margin, 1-3 days), a money transfer service (Wise, Remitly, Western Union — better economics than wires but still requires setup work), PayPal (cross-border-capable but with 4-5% fees and FX margins), or cryptocurrency (technical setup required, recipient needs compatible wallet).