PayPal ignites P2P payments: personal links

A link and the money moves: PayPal has introduced personal payment links to make P2P payments faster and more interoperable.

The announcement, issued from San Jose on September 15, 2025 PayPal Newsroom, highlights a 10% increase in P2P volumes in the second quarter of 2025 and confirms that Venmo recorded the highest TPV growth in the last three years.

These elements add to the group’s public financial data: in the Q2 2025 slides, PayPal indicates a total TPV of 443.5 billion dollars as of June 30, 2025, with a 6% year-over-year growth PayPal Q2 2025 Results.

The innovation starts in the United States and will be launched in the United Kingdom and Italy by the end of the month, confirming a progressive yet ambitious strategy.

According to public data and communications to investors, the mix between single-use functionality and interoperability is seen as an operational lever to reduce friction in conversations that become payments.

Industry analysts observe that simplifying the conversion of a chat into a transaction can increase the frequency of P2P payments and improve the retention of mobile-first users.

In our monitoring of official presentations and corporate comments, the priority given to improving the user experience is consistent with the goal of extending PayPal’s reach beyond just ecommerce checkout.

What is “PayPal Links” and how it works

“PayPal Links” allows you to generate a unique, private, and single-use link to receive money easily, even if payments occur between different apps. In this context, the flow is designed to ensure an immediate and frictionless operation: the process includes

• Creation: open the PayPal app, enter the amount and description, and generate the link in a few steps.
• Sharing: send the link via SMS, DM, email, or chat, wherever you prefer.
• Single use: the link is valid only for the designated transaction.
• Expiration: unredeemed links expire after 10 days.
• Management: you can send reminders or cancel the request until the payment is completed.

To pay, the recipient opens the link, logs into PayPal and confirms in a few taps; the funds appear immediately in their PayPal balance. That said, it remains possible to track the progress directly from the app.

Concrete Use Cases

• Expense reimbursement among friends: after a group dinner, the person who advanced the payment generates a link and sends it in the chat, avoiding the use of IBAN or complicated calculations.
• Birthday gift: the organizer shares the link and monitors payments in real-time, without spreadsheets or scattered reminders.
• Private purchase: in a local sale (for example, used electronics), the seller sends a one-time link and receives payment before delivery.

Availability and Rollout

• USA: available starting from September 15, 2025.
• United Kingdom and Italy: launch expected by the end of the month.
• Other markets: progressive rollout, prioritizing countries where P2P has a greater presence.

The function is part of “PayPal World,” the initiative aimed at connecting heterogeneous wallets and payment networks, allowing transactions between apps that currently do not “communicate” with each other. It should be noted that the approach is designed to extend accessibility without sacrificing user experience.

Crypto and PYUSD: what’s changing in the P2P app

In the United States, PayPal plans to integrate the sending of Bitcoin, Ethereum, PYUSD (PayPal’s stablecoin PayPal USD) and other supported digital currencies into the P2P experience.

The goal is to unify traditional payments and digital assets into a single interface, maintaining high standards of compliance and security. Indeed, the timeline for the launch in other countries has not been specified.

Costs, Limits, and Requirements: What We Know

• Fees: currently, PayPal has not specified any costs for using personal links; the rates may vary based on the funding method, currency, and any optional services (for example, instant transfers to bank).
• Limits: no transaction or daily limits related to the links have been communicated; users will continue to be subject to PayPal account general limits.
• Requirements: to receive funds, a PayPal account compliant with KYC verifications is necessary.

Note: At the moment, detailed technical documentation on the specific costs and limits related to personal links is not available, which may vary depending on the country and the type of account.

Security, Privacy, and US Tax Aspects

Security and privacy

• Single-use and private: each link is valid for a single request.
• Anti-fraud checks: maintain PayPal’s standard protections and anomaly monitoring.
• Reduced data sharing: it is not necessary to provide bank coordinates or card numbers, decreasing privacy-related risks.

1099‑K Tax Rules (USA)

Transfers friends-and-family via Venmo and PayPal remain exempt from reporting through the 1099-K form, while commercial transactions will be subject to current U.S. tax regulations. Transactions for gifts, reimbursements, or expense splitting do not trigger the sending of tax forms.

The recipient of a payment will see the funds immediately available in their PayPal balance, with the option to execute instant transfers to other methods if supported. However, availability may depend on the account settings.

Impact: +10% P2P, interoperability, and conversations that become payments

According to company data (PayPal Newsroom PayPal Newsroom), in Q2 2025 P2P volumes and total consumer payments (TPV) grew by 10% year over year, while Venmo recorded the best TPV growth in the last three years.

“PayPal Links” contributes to this dynamic, offering an experience characterized by interoperability and minimal friction, transforming simple messages into secure and traceable transactions. However, it will be international adoption that truly measures its impact.

Competition and Scenarios: Where PayPal Stands

• Apple Cash/Apple Pay: offers excellent integration within the iOS ecosystem, although cross-platform use is limited. For technical details and integration, see the official Apple Pay documentation.
• Cash App: strong in the USA, with immediate P2P payments and widespread support for Bitcoin.
• Bancomat Pay/Satispay (Italy): solutions based on number or nickname, with wide penetration across the national territory.

PayPal’s competitive advantage could lie in its portability and international coverage, especially if the “PayPal World” initiative succeeds in achieving true interoperability between different wallets.

It remains to be seen how the user experience will fare in markets outside the USA and the potential cost of the feature compared to existing alternatives, a factor that could influence user preferences.

Mini‑FAQ

How to Create a Personal Payment Link

• Open the PayPal app.
• Enter amount and description.
• Generate the link and share it in the conversation.

P2P Payments Among Friends

Ideal for reimbursements, expense splitting, and gifts. In the USA, friends-and-family transfers are not included in 1099-K reporting, simplifying management.

Instant payments between people

The recipient taps the link, accesses the PayPal app, and confirms the payment. The funds are immediately available in the balance, with the possibility of instant transfers to the bank account, if supported.