Accepting P2P Payments at Farmers Markets

Accepting P2P payments at farmers markets is becoming an increasingly popular way for vendors to expand their payment options. From small produce stands to artisanal goods sellers, many farmers and vendors are now using mobile apps to accept cashless payments directly from customers’ phones. 

This detailed guide explains what P2P payments are, why they matter for U.S. farmers market vendors, and how to start using them in a professional, secure, and user-friendly way.

Understanding Peer-to-Peer Payments

Peer-to-peer payments (P2P payments) are digital transactions where money is sent directly from one person to another via an app or online service. Instead of handing over cash or swiping a card, customers use their smartphones to pay vendors instantly. 

Popular P2P platforms in the U.S. include PayPal, Venmo, Cash App, Zelle, and Apple Cash, among others. These services link to users’ bank accounts, debit cards, or credit cards, enabling quick transfers with just a few taps.

P2P payment apps have exploded in use over recent years. Over half of U.S. consumers were regularly using P2P payment apps for personal payments in 2023. By 2025, around 60% of Americans will even use them to pay bills. 

This widespread adoption means many of your customers – especially younger ones – are comfortable paying with apps on their phones. At farmers markets, where cash has traditionally been king, accepting P2P payments can cater to modern buyer preferences without requiring expensive point-of-sale hardware.

How P2P payments work

Typically, the vendor and customer both install a given payment app. The vendor can display a QR code or username for the app at their booth. The customer opens the app, scans the QR code (or searches the username), enters the payment amount, and sends the money. 

The funds transfer from the customer’s account into the vendor’s account within the app, usually within seconds. The experience is quick and contactless – no cash or cards need to change hands.

Benefits of Accepting P2P Payments at Farmers Markets

Accepting P2P payments at farmers markets offers several advantages for vendors. Here are some key benefits:

• Greater Convenience for Customers: Many shoppers no longer carry much cash. By allowing P2P payments at farmers markets, you make it easy for those who have money in apps like Venmo or Cash App to buy from you on the spot.
  
  This convenience can translate into more sales, since customers won’t walk away empty-handed just because they ran out of cash.
  
• Increased Sales Potential: Digital payments can encourage higher spending. Over half of consumers say they’d be more likely to purchase goods at farmers markets if vendors accept cards or digital payments.
  
  When people aren’t limited by the cash in their wallet, they may buy more produce or additional items. Accepting P2P payments captures these extra sales opportunities.
  
• Fast, Efficient Transactions: P2P app payments are quick – usually just a few seconds to receive confirmation on your phone.
  
  Checkout is often faster than counting out change. Shorter lines and speedy transactions mean you can serve more customers in the same amount of time, especially during a busy market rush.
  
• Reduced Cash Handling: Going partially cashless reduces the amount of cash you have on hand. This improves safety (less risk of theft) and lowers administrative hassle.
  
  You won’t need to carry a heavy cash box or constantly make change for $20 bills. It also means less time spent after market driving to the bank to deposit earnings.
  
• Low Barrier to Entry: Accepting P2P payments doesn’t require an elaborate setup. If you have a smartphone or tablet with an internet connection, you can use P2P apps – no need to invest in a card reader or complex POS system.
  
  Many P2P apps are free to download and have minimal costs for basic use, making it an accessible solution for small-scale vendors.
  
• Appeal to Younger Shoppers: Millennial and Gen Z customers are especially likely to use mobile payment apps. Venmo, for example, is particularly popular among millennials, and Cash App has a strong Gen Z following.
  
  By accepting the payment methods these younger demographics prefer, you make your booth more welcoming to them. This can help grow your customer base and build loyalty with a new generation of market-goers.
  
• Contactless and Hygienic: In a post-pandemic environment, some customers and vendors still appreciate minimal contact transactions. P2P payments are completely contactless – there is no physical money or card to exchange.
  
  During COVID-19, many farmers markets encouraged vendors to adopt touchless payments like Venmo to reduce handling of cash. Even beyond health concerns, a touch-free checkout can be seen as modern and convenient.
  
• Automatic Digital Recordkeeping: Every P2P transaction is logged in the app, creating a digital paper trail of your sales. This can simplify tracking your income and inventory.
  
  You can review transactions later, which is handy for bookkeeping or understanding which products are selling best. (Keep in mind, however, that you will need to organize these records for tax purposes – more on that in a later section.)

While there are many benefits, it’s also important to balance new digital options with traditional methods. Some customers still strongly prefer cash (and some farmers markets even have a quaint, cash-centric culture). 

By offering P2P payments in addition to cash (and even credit/debit via a card reader if you choose), you ensure you’re not excluding anyone. The goal is to give customers more ways to pay, not force everyone into one method.

Popular P2P Payment Platforms for U.S. Farmers Market Vendors

Several peer-to-peer payment platforms stand out as the most popular and useful for farmers market transactions. Below is an overview of the top P2P payment apps in the U.S., along with their features and fee structures relevant to small vendors:

P2P Platform	Popularity & Usage	Fees for Business Transactions
PayPal (with PayPal QR Code)	One of the oldest digital payment services; widely used across age groups. Customers can pay via the PayPal app or website. Also owns Venmo.	2.29% + $0.09 per in-person transaction via QR code (PayPal’s special rate for point-of-sale QR payments). No fee for personal transfers funded from bank/balance.
Venmo (owned by PayPal)	~62 million users in 2025; extremely popular for casual payments among millennials and Gen Z. Often used at markets by sharing a username or QR code. Social feed aspect (shows payments to friends) but can be set private.	1.9% + $0.10 per transaction for business profiles. Personal-to-person payments are free if using balance or bank (credit card funding costs sender ~3%), but business use requires the fee.
Cash App (Square)	55+ million monthly active users in the U.S.; very popular with younger consumers and small vendors. Users pay by sending to your $Cashtag username or scanning your Cash App QR code. Integrates with Square point-of-sale systems.	2.75% per transaction deducted on Cash for Business accounts. No fee for personal payments (which are intended only for non-business use). Instant deposit to bank optional at 1.75% fee (standard deposit is free in ~1-2 days).
Zelle (bank-based)	143 million enrolled users as of 2024; transfers money directly between bank accounts via participating bank apps. Common for bank-to-bank payments. Some small farm businesses use it for larger payments.	No fees for sending or receiving through banks – money goes directly to your bank account. Zelle has no business transaction fees, but also no escrow or purchase protection. Note: Zelle isn’t required to issue 1099-Ks because it’s a bank transfer network (vendors must track income themselves).
Apple Cash (Apple Pay P2P)	Built into iPhone/iPad Messages app for sending money via iMessage. Convenient for Apple users, but not cross-platform (Apple-only). Not commonly used at markets compared to others, but an option if both vendor and customer use iPhones.	No direct transaction fee for sending/receiving via Apple Cash balance or linked bank (similar to personal P2P). However, Apple Cash is meant for personal use – it doesn’t provide business accounts or tax reporting. Using it for business might violate terms and won’t trigger automatic 1099-K forms.
Google Pay (Google Wallet P2P)	Google’s app also allows sending money (formerly Google Pay Send). Works on Android (and iOS via app) for peer transfers. Less popular than Venmo/Cash App in the U.S. for in-person payments, but some customers may use it.	No fees for bank transfers (personal payments). If used for business, it’s via a Google Pay for Business service or payment link with standard processing fees (if linked to card processing). Pure P2P transfers through Google Pay are typically personal and fee-free.

Note: All these platforms require an internet connection (cellular data or Wi-Fi) at the market to process payments. Also, to use them for business, you should follow each platform’s terms – for example, Venmo and Cash App require business profiles/accounts for commercial use, which automatically apply the transaction fees shown above.

Let’s look a bit closer at how a few of these platforms can be used effectively by farmers market vendors:

PayPal and Venmo

PayPal has long been a leader in digital payments and offers solutions for small merchants. With a PayPal Business account, you can generate a QR code for customers to scan and pay using their PayPal app. 

PayPal’s app will immediately notify you when the payment is received. Many customers (especially Gen X and older) trust PayPal due to its long history. PayPal funds can be transferred to your bank or spent via a PayPal debit card.

Venmo, owned by PayPal, is more commonly used in casual settings and among younger people. It has become normal to see “Venmo accepted here” signs at market booths. You can create a Venmo business profile to separate your farm business transactions from personal ones. 

Venmo business profiles will charge the 1.9% + $0.10 fee per payment, but in return, payments are tagged as goods/services and you get access to features like a professional username and transaction records. 

Venmo allows you to print a QR code for your business profile or even order an inexpensive Venmo QR kit to display. Customers simply scan the code with their Venmo app, enter the amount, and hit pay.

One thing to note about Venmo is its social aspect – by default, transactions (minus the amounts) can be seen by friends in the Venmo feed. It’s wise to set your business transactions to private for customer privacy. 

Venmo is widely used for small purchases; one report noted that during the pandemic, many farmers market sellers switched to accepting payments via apps like Venmo instead of cash. The ease of “just Venmo me” has stuck around since then as a convenient payment method at markets.

Cash App

Cash App (by Square, now Block Inc.) is another favorite for peer payments and is very friendly to small vendors. Each user has a unique $Cashtag (username), which you can put on a sign (for example, “Pay: $MyFarmName”). 

Cash App also provides a scannable QR code in the app that you can print out. Customers using Cash App can scan your code or enter your $Cashtag to pay you instantly.

Cash App personal accounts are meant for peer payments (free to receive), but if you use it for business regularly, you should mark your account as a business account. Business accounts incur a 2.75% fee on each payment received, which Cash App deducts automatically. 

The app will label your account as a business in transactions. One advantage of Cash App is its integration with Square’s other products – for example, Cash App Pay can tie into a Square card reader or online store if you have one, enabling a seamless checkout for customers who use Cash App. 

Cash App also has options to receive direct deposit, offer refunds, and even do Bitcoin or stock transactions (though those features are beyond what you’d need at a market).

Cash App is known for its popularity among younger, tech-savvy audiences. It’s reported that a large portion of small business sellers (like crafters, market vendors, creators) use Cash App as a primary tool. 

The interface is simple, and payments appear in your Cash App balance immediately with a notification. You can keep the money in the Cash App to spend with a Cash Card (a Visa debit card) or transfer it to your bank. Standard bank deposits take 1-3 days, or you can choose an instant deposit for a 1.75% fee if you need the cash in your account right away.

Zelle

Zelle is a peer-to-peer payment system integrated into many U.S. banking apps (for example, Chase, Bank of America, Wells Fargo, and others all have Zelle built in). Unlike other P2P apps, Zelle moves money directly between bank accounts. 

For a farmers market vendor, using Zelle would mean giving customers the email or phone number connected to your Zelle, and having them send the payment through their banking app.

The big advantage of Zelle is no fees – payments via Zelle cost nothing to send or receive, and the money typically arrives within minutes into your bank account. 

There’s no separate app you need if your bank supports it (though Zelle also has a standalone app if your bank is not a partner). 

Zelle’s adoption has grown rapidly; as of mid-2024, there were about 143 million users enrolled in Zelle, and by 2024 it handled over $1 trillion in transfers (a lot of that volume is for larger payments like rent, etc.).

For market vendors, Zelle can work if you and your customer both know how to use it on the spot. However, it’s a bit less convenient in a busy market scenario: the customer has to open their banking app, possibly add you as a recipient, and then send the money, which can take a few minutes the first time. 

There’s also no easy QR code for Zelle (since it’s tied to your personal contacts). It’s often used for bigger transactions (e.g., a customer buying a high-value item like a side of beef or an expensive craft might ask if they can Zelle the money).

One more important distinction: Zelle doesn’t provide business tools or tax reporting for vendors. Because it is just facilitating bank-to-bank transfers and not holding funds, Zelle is not required to issue Form 1099-Ks or track goods/services transactions under the new IRS rules (discussed later). 

This means if you use Zelle for sales, you must be diligent in keeping your own records and reporting that income.

Apple Cash and Google Pay

Apple Cash is Apple’s P2P payment feature, available to users of Apple devices. It works through the iPhone’s Messages app (iMessage) – you can send money in a text conversation. For a vendor, if both you and the customer have Apple Cash set up, the customer could technically iMessage you the payment. 

However, in practice this is not common at farmers markets because it requires exchanging phone numbers or an Apple ID. Apple Cash is more popular for personal use (like sending your friend money for lunch). 

It’s not really designed for business transactions, and as noted, Apple does not provide tax reporting for Apple Cash since it’s not positioned as a commercial service.

That said, Apple Pay in general is very popular for contactless payments – but usually that means using Apple Pay with a merchant’s card reader (NFC tap), not peer-to-peer. 

If you already accept credit cards via a Square reader or other POS, you are likely able to take Apple Pay and Google Pay wallet payments in that way (which is outside the scope of P2P). 

For pure peer-to-peer at markets, Apple Cash might be used rarely upon request, and Google Pay’s send-money feature similarly would be an uncommon method. It doesn’t hurt to be aware of them, but focusing on the big three (Venmo, PayPal, Cash App) will cover the vast majority of customer preferences.

How to Start Accepting P2P Payments at Farmers Markets

Getting started with P2P payments is relatively straightforward. Here are the key steps to follow to accept P2P payments at farmers markets:

1. Choose the Right Platforms: Decide which P2P payment apps you want to accept. It’s wise to choose at least one or two of the most popular ones in your area. Venmo and Cash App are commonly used at U.S. markets, and PayPal (with its QR code) can capture a broader range of customers.
   
   You can certainly set up multiple apps to give customers options. For example, many vendors display both a Venmo and a Cash App QR code.
   
   Remember, more options can mean more sales – one survey found 28% of people have experienced being unable to buy something at a market due to a vendor not accepting their preferred payment method. By offering multiple payment methods (cash, P2P apps, etc.), you can avoid losing those sales.
   
2. Set Up Accounts and Profiles: Download the app(s) you chose and create your account well before market day. Use a clear handle or username, ideally related to your farm or business name (so customers recognize it).
   
   If the platform offers a business account or profile option, use it. For instance, set up a Venmo Business Profile and/or convert to a Cash App Business account. This not only keeps you in line with the app’s terms of service, but also enables features like business name display and proper recordkeeping.
   
   It may require providing some additional info (like linking your bank and providing an EIN or SSN for tax purposes). Setting this up at home with a good internet connection will save you time and stress later.
   
3. Link to Your Bank: Connect your bank account or debit card to the P2P app so you can withdraw funds. After a successful market day, you’ll likely want to transfer your app earnings to your bank.
   
   Ensure the bank linkage is done and verified beforehand. Typically, the apps will send a test deposit or have you log in to your bank through the app to establish the connection. This step is crucial for moving your money out of the app and into your business bank account.
   
4. Test the Payment Process: Before using P2P payments in a live market setting, do a dry run. For example, use a second account or have a friend send a small payment to your vendor account via the app.
   
   This lets you verify that you can receive payments and see the notification on your device. It also helps you get familiar with how the app interface looks when a payment comes in (so you can quickly check customer payments later).
   
   Testing ensures there are no surprises – you don’t want to be troubleshooting account issues or forgotten passwords during the busy farmers market hours.
   
5. Print or Display QR Codes and Info: Once your accounts are ready, prepare your signage. All major P2P apps let you access a QR code that is linked to your account or profile.
   
   Print these out clearly, or use an official display if provided (some services will mail you a free placard or you can order a custom sign). Include text on the sign as well: e.g., “We accept Venmo (@YourName) and Cash App ($YourName).”
   
   A laminated sign or an acrylic stand with the QR codes is perfect for a farmers market booth – customers can scan codes quickly without touching the sign. Make sure the codes are large enough to scan from a short distance.
   
   You might also display the logos of the apps to catch the eye of users (Venmo’s V, Cash App’s $ symbol, etc.). If you have a social media handle or website, you can include those on the sign too – but avoid clutter. The goal is to make it super easy for the customer to see how they can pay you electronically.
   
6. Ensure Internet Access at the Market: P2P payments won’t work without an internet connection. Check that your smartphone has a reliable data signal at your farmers market location.
   
   If your market is in an area with spotty cell service, talk to the market manager – some markets provide Wi-Fi for vendors, or you might invest in a mobile hotspot. At minimum, know which parts of the market have the best reception and try to position accordingly.
   
   Consider having a backup plan: if connectivity fails, you may need to fall back to cash or use a buddy’s phone as a hotspot. Managing this ahead of time will keep your payment process smooth.
   
7. Communicate and Confirm Transactions: When a customer wants to pay with a P2P app, guide them as needed. For instance, you can say, “You can scan this QR code to pay – let me know if you need help.”
   
   Most users will know what to do, but always be ready to assist those who are less familiar (especially if your target audience includes older customers who might be new to mobile payments).
   
   Once they send the payment, confirm you’ve received it on your device before handing over the goods. You should see a notification or can refresh the app to verify the amount.
   
   This protects you from any honest mistakes or potential scams (on rare occasions, someone might show a fake screenshot; checking your own app avoids that trick).
   
   It’s also good practice to thank the customer and maybe show that you got it: “Got it, thank you! Would you like an e-receipt?” – some apps like PayPal can send receipts, or you can simply offer to text/email a confirmation if needed.
   
8. Keep a Backup Payment Method: Despite embracing P2P payments, don’t ditch other methods unless you’re absolutely sure all your customers are on board. It’s usually best to accept multiple forms of payment.
   
   Continue to have a cash box with change for those who prefer cash. If you have the resources, consider also using a card reader for credit/debit (services like Square, PayPal Zettle, or others can complement P2P by allowing tap or swipe card payments).
   
   Each payment method captures a different slice of customers. By being flexible – “We accept cash, cards, or Venmo/Cash App” – you maximize your potential sales and appear more customer-friendly.
   
   Over time, you might find which methods are used most and adjust accordingly, but especially when starting out, cast a wide net.

Following these steps will set you up to successfully accept P2P payments at your farmers market stall. Once you’re comfortable with the process, you’ll likely find it integrates seamlessly into your sales routine.

Best Practices for Using P2P Payments at the Market

Implementing P2P payments is not just about the technical setup; it’s also about how you manage and integrate it into your market day operations. Here are some tips and best practices to ensure accepting P2P payments goes smoothly for you and your customers:

• Advertise Your Payment Options: Make sure visitors to your booth know you accept P2P payments. Use clear signage as mentioned, but you can also casually mention it when greeting or engaging customers.
  
  For example, if you see someone hesitating because they have no cash, you can say, “By the way, we do take Venmo or card if that’s easier for you.” People won’t use an option if they aren’t aware it’s available, so be proactive in letting them know.
  
• Keep Transactions Private and Secure: Maintain customer trust by handling digital payments carefully. For Venmo, toggle the privacy to “Private” for each transaction if using a personal account (or use a business profile which is private by default).
  
  Never share a customer’s personal account info publicly. Also, safeguard your device: use a strong passcode or biometric lock on your phone, so if it were ever lost or stolen at the market, your payment apps and funds are safe.
  
  Log out of the apps or use app lock features when not in use. These simple security steps help protect both you and your customers’ financial data.
  
• Verify Payments on the Spot: Develop a habit of checking the app immediately when someone says they’ve paid. All platforms will show you the incoming payment with the exact amount.
  
  Do this in front of the customer, so you both acknowledge the payment is complete. It takes only a moment and prevents any confusion (e.g., a typo in the payment amount or a payment sent to the wrong username).
  
  In the rare case a payment doesn’t come through, politely ask the customer to retry or show you their confirmation screen. Clear communication will resolve most issues quickly.
  
• Manage Volume with Multiple Apps: If you accept multiple P2P apps, you’ll have multiple streams of incoming payments. This can be overwhelming if not organized. One approach is to funnel most customers to one preferred app (say, Venmo) and treat the other as secondary.
  
  However, if you get a mix of usage, consider setting sound or vibration alerts with distinct tones for each app, so you know which one got a payment. After the market, reconcile your sales by checking each app’s history.
  
  You might keep a simple tally sheet during the market to note sales and ensure they match the digital payments received. Good recordkeeping will help later when you evaluate your earnings and inventory.
  
• Stay Aware of Fees and Factor Them In: As highlighted earlier, using P2P business services will incur small transaction fees (usually in the 1.9%–2.9% range). Keep these in mind when pricing your products.
  
  For instance, if you have slim margins, you might slightly adjust your prices upward to account for fees. Another strategy is to set a minimum purchase for digital payments (though at a farmers market, that’s less common – most vendors simply absorb the small fee as a cost of doing business).
  
  What you should not do is surprise customers with an extra charge for using a certain payment, as that can be off-putting and may violate some platform policies. Instead, price your goods with a buffer so that whether they pay cash or P2P, you’re covered.
  
  Over time, evaluate how much you’re paying in fees (the apps’ dashboards or statements can show this) and treat it like any other business expense.
  
• Have a Charging Plan for Your Device: Relying on your phone to process payments means it needs to stay powered all market long. Make sure to start with a full battery and bring a portable charger or battery pack.
  
  If you’re at an all-day event or a market in a park with no outlets, a battery pack is essential. There’s nothing worse than having to revert to cash-only mid-day because your phone died.
  
  Some vendors even bring a spare device or tablet as a backup for processing payments if their main phone fails.
  
• Customer Service and Patience: Not everyone is tech-savvy, and at a farmers market you’ll encounter a wide range of customers. Be patient and ready to assist those who want to pay via P2P but aren’t quite sure how.
  
  You might encounter someone who has never used Venmo but is willing to try on the spot. Walk them through it calmly – “You can download the app, it only takes a minute, and I’ll help you find me.”
  
  However, also use judgment: if there’s a long line, it might be better to kindly ask them to use cash this time and perhaps set up the app for next time. Gauge the situation. Excellent customer service in facilitating a new payment method can turn first-timers into repeat customers who appreciate your help.
  
• Maintain Cash Change for a Transition Period: As you introduce P2P payments, you might start seeing less cash usage. Still, it’s wise to have adequate small bills and coins for change at each market, especially while the majority of customers adapt.
  
  Eventually, if digital payments become the bulk of your sales, you won’t need to bring as much cash. For now, view P2P as complementary.
  
  There will always be that one customer who only has a $10 bill and wants $3 of produce, or conversely someone whose phone is dead and can only pay cash. Being able to accommodate both ensures no sale is lost.
  
• End-of-Day Reconciliation: After each market day, reconcile your sales across payment types. Count your cash and cross-check your app payments. P2P apps will have a transaction history with timestamps.
  
  Tally up everything to ensure it matches what you think you sold. This is not only good for tracking your business performance, but also critical for capturing all income for tax reporting. If you notice any discrepancies, you can attempt to address it while it’s fresh . Such issues are rare, but reconciling keeps you on top of your finances.

By following these best practices, you can integrate accepting P2P payments into your routine seamlessly. Vendors who successfully adopt these methods often find that it boosts both their sales and their reputation for convenience.

Managing Security and Compliance for P2P Payments

While P2P payments are convenient, vendors must pay attention to security and regulatory compliance, especially as these digital transactions become part of your business finances. Here are important considerations:

• Financial Security and Fraud Prevention: Reputable P2P platforms are generally secure – they encrypt data and have fraud monitoring (for example, Cash App and Venmo have added multiple security layers and fraud detection algorithms to protect users).
  
  However, you should still practice basic safeguards. Only accept payments from customers on the spot (don’t accept a promise that someone will pay later via app unless you trust them like a regular).
  
  Be wary of any unusual situations, such as a customer claiming they can only overpay and have you refund the difference (this could be a scam). Fortunately, at a face-to-face market, such scams are rare compared to online sales.
  
  Additionally, avoid clicking any strange links or responding to unsolicited messages in the apps – scammers sometimes target users by impersonating support. Rely on the official app and your own verification to manage transactions.
  
• Privacy of Personal Information: When you use apps like Venmo or Cash App, be mindful of what personal info customers might see and vice versa. With a business account or profile, usually the customer will see your business name and maybe a profile picture/logo.
  
  That’s good for branding and privacy. Try not to mix personal transactions with business ones on the same account, to avoid confusion and privacy issues.
  
  It’s also wise to review the app settings; for instance, Venmo allows you to turn off the social feed or limit it, and Cash App doesn’t have a public feed at all (which many prefer for privacy).
  
  Reassure customers that their payment info is not visible to others. For example, if someone pays you on Venmo, they can set that single transaction to private, so it’s not broadcast to their friends. These steps can address privacy-conscious customers’ concerns.
  
• Understanding Tax Obligations: A crucial aspect of taking digital payments is that it leaves a financial trail that tax authorities can track. All income from your farmers market sales – whether in cash or via P2P – is taxable income that you are required to report.
  
  In the past, cash-only operations sometimes underreported income, but with digital payments, there’s a record of everything. In fact, the IRS has been implementing new rules to ensure they capture these transactions.
  
  Historically, payment apps were required to issue a Form 1099-K (a form reporting payment transactions) only if a vendor exceeded $20,000 and 200 transactions in a year.
  
  However, the American Rescue Plan Act of 2021 significantly lowered that threshold to $600 (with no transaction minimum) – meaning even a small side business could trigger a 1099-K form.
  
  This change has been phased in gradually: the IRS set the threshold at $5,000 for 2024, $2,500 for 2025, and plans $600 for 2026. The bottom line is, within the next year or two, most vendors using P2P apps will receive 1099-K forms from those platforms if their sales are over very low amounts.
  
• Reporting and Recordkeeping: If you receive a Form 1099-K from a payment provider (PayPal/Venmo, Cash App, etc.), the IRS gets the same form. For example, PayPal and Venmo track payments marked for goods and services on business accounts and will report that to the IRS.
  
  Cash App will do likewise for business accounts. (Notably, as mentioned, Zelle is exempt from these reporting requirements, but that doesn’t exempt you from owing tax on Zelle-received income – it just means you won’t get a form from Zelle.) It’s important to keep your own records of all sales.
  
  The apps will provide summaries, but you should maintain a simple ledger of cash sales too, so that your total revenue is documented. Come tax time, you should report your farmers market income as business income on your tax return.
  
  If you have deductible expenses (supplies, market fees, etc.), track those as well to offset the income. Accurate recordkeeping ensures you don’t pay more tax than necessary and protects you in case of an audit.
  
• Complying with Platform Terms: Each P2P app has user agreements that you technically agree to when signing up. Using a “personal” payment account for business transactions can violate these terms for some platforms.
  
  The consequence could be suspension of your account or loss of access to funds if the platform flags you. For example, if a personal Venmo account is used heavily for payments with descriptions that look like business (goods, services), Venmo might flag and request you switch to a business profile.
  
  It’s better to proactively use the correct account type. The fees may slightly cut into your margins, but it keeps you within the rules and ensures, for instance, that you have recourse if a dispute arises.
  
  Also, with business accounts, you often get features like customer support for payment issues, which can be valuable.
  
• Insurance and Liability: This is a broader point, but consider if your general liability insurance (if you carry any for market vending) covers digital payments or associated cyber risks.
  
  The risk is relatively low for simple P2P use, but if you ever expand to online sales or apps, keep security in mind. Always protect customer data – though with P2P, you actually handle less sensitive data than running your own credit card transactions (since you’re not handling card numbers).
  
  The biggest risk with P2P is more on the financial side (someone hacks your account). So use good passwords and enable two-factor authentication on your payment apps if available.
  
  This way, even if someone somehow got your password, they’d need a second verification (often a code texted to your phone) to access your account.

In summary, treat P2P app earnings like any other business earnings – secure them, track them, and report them. By doing so, you’ll stay on the right side of the law and avoid any nasty surprises during tax season or when dealing with the payment platforms. 

The convenience of these apps far outweighs the added responsibility, as long as you handle them with an informed approach.

Frequently Asked Questions (FAQs)

Q: What are P2P payments in the context of farmers markets?

A: P2P (peer-to-peer) payments refer to transactions made directly between individuals using digital apps or platforms. In a farmers market context, P2P payments let customers pay vendors through apps like Venmo, PayPal, Cash App, or Zelle on their smartphones, instead of using cash. 

The customer sends money from their app to the vendor’s account instantly. It’s essentially a cashless, app-based way to pay on the spot.

Q: Which P2P payment apps are most popular for farmers market vendors in the U.S.?

A: The most commonly used P2P apps at U.S. farmers markets include Venmo, Cash App, PayPal, and sometimes Zelle. Venmo and Cash App are extremely popular for quick person-to-person payments and are frequently seen on vendor signs. 

PayPal’s QR code payments are also widely accepted and benefit from PayPal’s large user base. Zelle is used by some vendors for direct bank transfers (especially for larger payments or with older customers who use banking apps). 

Other options like Apple Cash or Google Pay exist, but are less frequently used at markets compared to the big four. It’s a good idea to accept at least one or two of these major platforms to cover most customers’ preferences.

Q: How do I start accepting P2P payments at my market booth if I’ve never done it before?

A: First, decide on one or two P2P platforms that you think your customers are likely to use (Venmo and Cash App are a safe bet for many areas). Next, sign up for accounts on those apps. If available, create a business profile or account. 

Link your bank account to the app for withdrawals. Then, generate your QR code or find your username in the app settings. Print a sign with the QR code and the name. Test the setup with a small payment from a friend to make sure everything works. 

Finally, bring your phone (charged) and the sign to the market. Let customers know you accept that payment method. The process is straightforward and usually can be done in a single afternoon of setup.

Q: Do I need a separate business account, or can I use my personal Venmo/Cash App for selling at the farmers market?

A: It’s highly recommended to use a business account or profile if the platform offers one. While you could use a personal account for occasional transactions, doing so regularly for sales can violate the app’s user agreement and may also complicate your recordkeeping. 

Venmo and Cash App both have business options: Venmo Business Profile or Cash App for Business. These will apply the standard transaction fees (around 1.9%+10¢ for Venmo, or 2.75% for Cash App), but they label the payments properly and will provide you the necessary info for taxes (like a 1099-K if you meet the threshold). 

A business account also keeps your personal finances separate and looks more professional to customers (your business name can show up on their app). In summary, for anything beyond a very casual, once-in-a-while sale, switch to the business account. It keeps you compliant and organized.

Q: What fees do these P2P apps charge to vendors? Will it cost me money to accept a $10 payment via an app?

A: For personal accounts, sending and receiving money (from a bank or balance, not credit card) is free. But as a vendor using business services, there are small fees per transaction. For example:

• Venmo charges 1.9% + $0.10 for each payment received on a business profile. So for a $10 sale via Venmo, the fee would be $0.19 + $0.10 = $0.29, and you’d net $9.71.
  
• PayPal charges about 2.29% + $0.09 for QR code payments in person, so a $10 sale would incur roughly $0.32 in fees.
  
• Cash App Business accounts deduct 2.75% of each payment. That would be $0.28 on a $10 transaction (you’d get $9.72).
  
• Zelle has no fees to send or receive, because it’s bank-to-bank.
  
• Apple Cash and Google Pay peer payments have no fees for standard transfers (they’re more like personal payments and don’t have a business mode with fees).

These fees are relatively small (often cheaper than the ~3% fees on credit card processing). However, over many transactions they do add up, so factor it into your pricing. 

Typically, vendors accept the fee as a cost of doing business for the convenience and extra sales gained. It’s usually not added on top of the customer’s charge (e.g., you don’t say “that’ll be $10 + 30 cents fee” – you just price items with enough margin to cover it).

Q: Is it safe to accept P2P payments? What if a payment doesn’t go through or someone tries to scam me?

A: Generally, it’s very safe to accept P2P payments, especially in face-to-face situations. The apps use encryption and secure networks. When a customer initiates a payment in front of you and you see it confirmed in your app, that money is now in your account – it’s almost like receiving cash. 

There isn’t a mechanism for the payer to “pull back” the money at will (unlike credit cards which have chargebacks, P2P payments are usually irreversible once sent, except in cases of fraud or error which are handled through the app’s support). To protect yourself:

• Always confirm the payment in your own app before giving the product to the customer. This avoids any attempt at showing fake screenshots.
  
• Only accept payments from the customer’s own account (never let someone send you a random email link or something strange – those could be phishing attempts).
  
• Be aware of common scams (they are rarer in person, but for example, don’t fall for someone “accidentally” sending you money and asking for a refund – that’s a known scam outside of markets).
  
• Keep your app login secure and use 2-factor authentication. This prevents outsiders from accessing your funds.
  
  In practice, farmers market vendors using these apps have very few issues. In fact, dealing with cash has more tangible risks (loss, theft, counterfeit bills) than digital payments. The key is to stay vigilant and use the apps as intended.

Q: What if a customer only has one particular app and I don’t use that app? Do I need to accept every single payment app?

A: You don’t have to accept every app under the sun, but offering the most popular ones will cover the vast majority of customers. It’s common to see vendors advertising 2-3 apps (for example: “We take Cash, Visa/MC, Venmo, Cash App”). If a customer asks for an app you don’t support, you have a few options:

• If it’s a major app that you simply hadn’t set up (say you use Venmo but not PayPal), you might consider quickly signing up for it later if you see multiple people asking. For the immediate sale, politely ask if they have one of the methods you do accept, or even suggest cash if possible.
  
• If the customer truly only uses an app you don’t (maybe they only use Zelle and you don’t have it), you could decide on the spot if you want to accommodate.
  
  Zelle, for instance, requires sharing your phone/email and might be more hassle in the moment. It’s okay to say, “Sorry, I don’t have that, do you maybe have Venmo or cash?” Most people will find a way if they really want your product.
  
  In summary, cover the big ones (which most likely aligns with what most folks have). You’ll rarely encounter someone who uses an obscure payment method exclusively. And you certainly don’t need to burden yourself with managing five different apps if two or three cover 95% of your customers.

Q: Do I still need to accept cash if I start taking P2P payments?

A: It’s strongly advised to continue accepting cash (at least for now). Cash is universally accepted and has zero processing fees. While cash use is declining, a significant portion of farmers market shoppers still prefer or rely on cash – in fact, research shows about 76% typically use cash at farmers markets. 

You don’t want to alienate those customers. The idea of adding P2P payments is to capture sales you might lose from card or app users, not to eliminate cash sales. Over time, you might find cash becomes a smaller share of your transactions. 

Some vendors in certain markets have gone nearly cashless because their clientele has shifted. But as a rule of thumb, especially in the U.S., it’s best to accommodate both. 

Having a cash float for change, alongside your new digital options, puts you in the best position to serve everyone. Plus, cash can be a good backup if your phone or the network has an issue.

Q: How do taxes work with P2P payments? Will I get a 1099 form for my farmers market sales on these apps?

A: Taxes for P2P payments work the same as taxes for any business income: you are required to report the income on your tax return. The payment apps are adding additional reporting on their end due to new IRS rules. 

Starting in tax year 2023 and beyond, third-party payment processors are required to issue a Form 1099-K to users who receive over a certain threshold in goods/services payments. 

The threshold is in flux (it was supposed to drop to $600, got delayed for 2023, and is being phased: $5,000 for 2024, $2,500 for 2025, and $600 from 2026 onward). So, if you have even moderate success at the market, you may cross these thresholds. 

For example, $5,000 in sales in a year could easily happen if you do markets regularly. If you cross the threshold, PayPal/Venmo, Cash App, etc., will send you a 1099-K in January listing the total amount you received through them, and the IRS gets the same info. 

Note that payments marked as personal (like a friend paying you back) are not counted – only payments for goods/services should be on the form.

If you do not cross the threshold, you might not get a form, but you still must report the income. Many small vendors operate as sole proprietors; you’ll typically report market income on Schedule C of your Form 1040, where you can also deduct expenses like booth fees, seeds, supplies, etc. 

It’s a good practice to keep a simple spreadsheet or notebook of all your sales (cash and digital) and expenses. This way, come tax time, you’re prepared whether or not the IRS got a form from the payment apps. 

And one more thing: Zelle currently doesn’t issue 1099-Ks because it’s considered just a bank transfer service, but again, that doesn’t exempt the income from tax – it just means you rely on your own records. When in doubt, consult with an accountant or use tax software that guides small business income reporting.

Q: What if the farmers market doesn’t have good cell service or Wi-Fi? How can I accept P2P payments without the internet?

A: An internet connection is pretty much required to process P2P payments on the spot. If your market location has poor reception, here are a few approaches:

• Prepare a Hotspot: If you have access to a portable Wi-Fi hotspot (or your phone can create one for other devices), that might boost connectivity.
  
  Sometimes one carrier has better coverage than another; vendors have been known to use a second low-cost data plan (or a friend’s phone as hotspot) if their primary phone’s carrier is weak there.
  
• Offline Queuing (Limited): Some POS systems (like Square) offer an offline mode for card transactions that queues them. P2P apps don’t really have an offline mode – the transaction won’t go through until connected.
  
  You could theoretically take a payment when you get back to connectivity (e.g., have the customer show you their info and promise to pay when they have a signal), but this is based on trust and not recommended for new customers.
  
  Maybe for a regular who you know, you could arrange a later payment, but generally you want payment at time of sale.
  
• Alternative: IOUs or Token System: In a worst-case scenario with no connectivity, you could fall back to analog solutions.
  
  For example, some markets during connectivity issues have written IOUs or used the market’s token system (if available) where customers buy tokens via a central point that has the internet, then spend tokens at your booth (you redeem tokens later). This is more a contingency than a plan.
  
  Realistically, if your market consistently has no connectivity, it will hinder P2P payment adoption. You might speak with the market managers; they might not even allow mobile payments if they know the site is a dead zone (though that would be unusual in 2025, as most places have at least some signal).
  
  If many vendors demand better connectivity, sometimes markets collaborate to get a Wi-Fi solution. But assuming you have at least spotty service, positioning your booth, using a booster, or trying a different carrier’s SIM could help.
  
  In summary, you do need the internet for these apps – so focus on improving that, or use traditional methods until it’s resolved.

Q: Can customers tip me through P2P apps?

A: Yes, absolutely. Digital payments make it quite easy for customers to add a tip if they feel so inclined. If you have a tip jar out for cash, you can add a note on your sign like “Tips appreciated: via cash or digital.” 

On some apps like PayPal, when using QR codes for a business, the interface may even prompt the payer if they’d like to tip. With Venmo or Cash App, the customer would just include a bit extra in the total if they want to tip. 

You can encourage tips subtly by providing an option: for instance, a coffee vendor might price a cup at $4 but many customers will send $5 on Venmo to include a $1 tip because it’s easy to do so without needing singles for a tip jar. 

Just be sure to graciously acknowledge any tips as you would in person. In your records, you can count them as additional income (they are taxable as well). Overall, P2P apps certainly allow tipping and some customers enjoy doing it digitally.

Q: Are there any downsides or risks for vendors using P2P payments at farmers markets?

A: The downsides are relatively minor but worth noting:

• Transaction Fees: as discussed, you lose a small percentage of each sale to fees when using business services on these apps. This is usually outweighed by increased sales volume, but it’s a cost to be aware of.
  
• Tech Reliance: you are dependent on your device and the network. If your phone malfunctions or the app has an outage (rare, but possible), you could be stuck. Always good to have a backup plan or at least the old-fashioned methods to fall back on.
  
• Learning Curve: both you and some customers might have a small learning curve initially. There might be the occasional hiccup (like sending to the wrong account if names are similar – though QR scanning mitigates that).
  
• Bookkeeping Complexity: managing multiple payment sources (cash, two apps, etc.) is a bit more work than just counting cash at day’s end. However, it’s manageable with simple systems, and digital records can actually make it easier in some ways.
  
• Privacy/Tracking: some vendors who preferred the anonymity of cash might feel uneasy that digital payments are tracked. But as long as you are running a legitimate business and reporting income properly, this is not truly a downside – just an adaptation.
  
  It also means you’ll likely be declaring all your income, which is the right thing to do, but it does mean paying taxes on it (whereas some might have under-reported cash sales in the past).
  
• Platform Limits: some apps have limits (especially on personal accounts) on how much you can receive in a week or month until you verify more info.
  
  Business accounts usually have high or no limits, but it’s something to be aware of if you do a brisk business – make sure your accounts are fully verified to handle the volume you expect.
  
  In short, the risks are low and can be managed with a bit of preparation. Millions of small businesses use these methods daily, from farm stands to craft fairs, with great success.

Conclusion

Adopting P2P payments at farmers markets can be a game-changer for your vending business. It offers customers greater flexibility in how they pay and can lead to increased sales and satisfaction. 

We’ve discussed how accepting P2P payments at farmers markets – using apps like Venmo, PayPal, Cash App, and others – enables faster, convenient, and cash-free transactions that appeal to today’s consumers. 

By setting up the necessary accounts, displaying clear signage, and following best practices, even the smallest farm stand can operate with the polish of a modern retail business while maintaining the personal touch that markets are known for.

Remember that people come first: providing a good customer experience is the ultimate goal. P2P payments are simply a tool to help facilitate that. 

When your customers don’t have to worry about not having cash, they can relax and enjoy purchasing your fresh produce, homemade jam, or crafts with whatever payment method suits them. 

By focusing on usability, security, and transparency, you demonstrate professionalism and build trust – key components of EEAT (Experience, Expertise, Authoritativeness, Trustworthiness) in the eyes of customers.

As a U.S. vendor, highlighting popular domestic platforms and staying compliant with financial rules will ensure your venture thrives in the long run. 

Embrace the technology at a pace you’re comfortable with, educate any customers who are curious about it, and continue to adapt based on feedback. With both traditional and digital payment options in hand, you’ll be well-equipped to serve a wider audience. 

In the end, accepting P2P payments is about making it easier for people to support your business. In today’s increasingly cashless society, that can make all the difference – turning a passerby with no cash in their wallet into a loyal customer who knows they can always PayPal or Venmo at your farmers market booth and get exactly what they came for.

By implementing the guidance in this article, you can confidently optimize your farmers market sales for the modern age while keeping the market experience friendly and enjoyable. Happy selling, and here’s to smooth transactions and bountiful market days ahead!