Why when I pay a person QB shows (transfer) in the far right-hand corner?

Hello there, @neels2. 

QuickBooks Online (QBO) is dependent on the information that your financial institution share with us. QBO analyses all the information received from the bank, and you have three options (Add, Match, and Transfer) to accept the bank transactions.

Since the downloaded transaction type was automatically assigned as Transfer, you can change it from the Banking page. Let me show you how: 

1. On the left pane select, select Banking.
2. On the Banking page, go to the For Review tab.
3. Locate and select the transaction to open it.
4. Select either the Add or Find Match radio buttons to clear the Transfer radio button.
5. Select a new category for the transaction and select Add, or match the transaction and hit Save.

 Also, I suggest contacting your bank and verifying if there are any changes made when it comes to their banking process when connecting to QBO.

I've attached an article about managing transactions, like how to review your account after you've matched or added transactions or re-categorise them: Match and categorise bank transactions.

Drop me a comment below if you have any other questions. I'll be happy to help you some more.