I have done some research on this. it's so confusing and you should confirm with your CPA first but I hope this helps clarify:
1) as of 2022 the trigger for Paypal (or any 3rd party payer) to send a 1099k is reduced to $600.
2) if you pay with "friends and family" option you are required to send the contractor a 1099NEC. In other words, Paypal will not send them a 1099k if you use the "friends and family" option. PayPal will only include payments that are marked as "business" payments and those payments are always charged a fee (usually 3.49% + fixed fee of around 0.49 USD).
Venmo is also a 3rd party payment processor - they also ask for each payment if it's to "friends" (like a repayment of borrowed money) or for a business. I think this is only an option if you have business payments enabled for your account. The fee is lower: 1.9%+$0.10.
I think all credit card payments and services like Wise or Square don't have free options so all those payments will be reported on a 1099k.
Zelle is always free so banks are not going to ever send the 1099k.
