Is it really adding another payment method? I thought it was me > p2 seller > me. Not me > p2 seller > Binance > me. Meaning the seller is the one who is sending the money from their account to the account I give them. It's not Binance that's sending me the money from their account.
Yes, the fiat will transfer directly from the buyer's account to the seller's account, but you still have to link your bank account to Binance and they will still go through all their usual KYC requirements and checks and all the rest of it. If you add a bank account in a different name to the name registered on the account, then it will absolutely throw a red flag and result in your account being locked. Since you are using Binance, even though you are trading peer to peer you are still using a completely centralized and privacy invading platform, and so will be subjected to all their usual rules and regulations.
Your options are either:
1 - Trade using your own bank account and then send the fiat to your friend
2 - Have you friend open his own account and go through the KYC process
3 - Use a real DEX such as Bisq or LocalCryptos, and not the centralized Binance nonsense