Joe Thompson owns Crisp Catering and the Gold Rush Grille located at the Secretary of State‘s office. Thompson is also a member of the National Federation of Independent Business’ Leadership Council.

SACRAMENTO REGION, CA (MPG) - As a small business, we must make it as easy as possible for our customers to pay us. In today’s economy, that means embracing the digital tools our customers already use, especially peer-to-peer (P2P) payment platforms like Venmo, Cash App, and Zelle. These apps aren’t just a convenience; for many small businesses, they’re a lifeline.

 In Sacramento County, peer-to-peer payments are transforming how small businesses get paid. At the Elk Grove farmers market, produce vendors can complete sales on the spot with a quick scan of a QR code. In Rancho Cordova, a mobile dog groomer doesn’t have to wait on a check. Her customers can pay instantly before she packs up. And during Citrus Heights’ annual craft fair, cashless payments help local artisans make more sales and avoid the hassle of hauling around a card reader or dealing with bills and coins.

These platforms have become as essential to small business operations as cash registers were a generation ago.

Why? Because consumers value convenience and so do we. Peer-to-peer payments are trusted, easy to use and fast. Many customers, especially younger ones, no longer carry cash or even use credit cards regularly. For them, peer-to-peer apps are the new wallet. If we can’t accept the way they want to pay, we risk losing their business.

Platforms report that small businesses received about $465 per transaction in 2024 using peer-to-peer networks, often without paying fees. 

For small businesses in places like Galt, where family-run operations run on razor-thin margins, that difference can mean the ability to pay rent, order inventory or hire help. And because many platforms transfer funds in near real time, business owners don’t have to wait days for bank processing. That speed means a food truck owner in Fair Oaks can refill supplies between lunch and dinner service or a mobile hairdresser in Arden-Arcade can keep rolling to the next client.

Still, some are calling for heavy-handed new regulations on peer-to-peer platforms in the name of stopping fraud. Let’s be clear: fraud is a real issue and we need strong solutions, but punishing the tools small businesses depend on won’t stop criminals, it’ll just hurt local economies.

Instead of targeting the platforms that are helping us grow, we should be cracking down on the bad actors behind the scams. That means funding law enforcement efforts, improving coordination across agencies and supporting smart industry practices. In fact, some peer-to-peer platforms already go above and beyond, using advanced fraud detection tools and offering reimbursements when users are tricked by imposters. Our public policy should build on that, not undercut it.

At a time when small businesses across Sacramento County are still recovering from inflation and pandemic-era disruptions, policymakers must recognize that peer-to-peer platforms aren’t the problem, they’re part of the solution. Let’s keep it simple for customers to pay us and keep growing our local economy in the process.

Peer-to-peer is here to stay and for small businesses like mine, that’s a very good thing.

Joe Thompson owns Crisp Catering and the Gold Rush Grille located at the Secretary of State‘s office. Thompson is also a member of the National Federation of Independent Business’ Leadership Council.