P2M Transactions

byPaytm Editorial TeamLast Updated: July 11, 2025

Introduction

P2M (Peer-to-Merchant) transactions are UPI payments made by customers to businesses for goods or services.

Definition

The definition of P2M transaction is a payment type where money is transferred from a customer’s bank account to a merchant’s account using UPI or QR codes.

How It Works

The customer scans a merchant’s QR code or enters their UPI ID, confirms the payment, and the money is transferred instantly to the merchant’s bank account.

Benefits

  • Replaces cash at point of sale
  • Real-time payments for merchants
  • Works across all major UPI apps

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