As a business organization representing thousands of small employers in California’s Central Valley, we know what it takes for entrepreneurs to succeed in today’s fast-moving economy. Whether you run a fruit stand in Selma, a food truck in Modesto, or a family-owned shop in Madera, keeping costs down and transactions simple is critical. That’s why peer-to-peer (P2P) payment platforms like Paypal, Venmo, and Zelle have become an essential part of doing business.
These tools aren’t just convenient. They have transformed businesses. Small businesses use them to get paid instantly and securely, often without fees. The technology can be a game charger in rural and underserved communities where access to traditional banking or point-of-sale systems can be limited. In 2024, one major platform reported small businesses averaged $465 per transaction through their network. That figure represents real money going directly into the hands of sole proprietors, gig workers, and family-run shops.
But now, some in Washington and Sacramento are pushing for sweeping new regulations on payment platforms in the name of preventing online fraud. Let’s be clear: fraud is a real issue that deserves attention, and we support common-sense solutions. But we cannot afford to solve it by making life harder for small business owners. We need smart, targeted enforcement, not broad mandates on tools that small businesses use that will raise costs, limit access, and choke out innovation.
The threat of scams and fraud on payment platforms is not inherent to the technology. Scams happen everywhere. The real threat is the criminals abusing these tools. Lawmakers should prioritize cracking down on bad actors, not taking the tools away from users. By investing in better enforcement, enhancing inter-agency coordination, and supporting partnerships with industry leaders already deploying advanced fraud prevention tools, leaders can achieve real consumer protections.
Our message is simple: let’s protect small businesses, not punish them. New red tape on payment platforms could force the providers to charge fees, reduce services, or pull back entirely from serving micro-businesses. This is the very opposite of what California’s economy needs.
The Central Valley is still recovering from pandemic disruptions and coping with inflation. We need more tools to help small businesses thrive, not fewer. P2P payments aren’t a problem to fix. They are part of the solution. Lawmakers at the state and federal level should focus on the real culprits and avoid one-size-fits-all policies that hurt honest entrepreneurs.
Let’s keep P2P payments fast, fair, and free—and let’s keep Central Valley businesses growing.
