With the evolving digital world, people are more inclined towards mobile payment apps these days. They use it for various reasons like promoting a cashless economy, staying card or cash-free, and doing payments in one-click technology. Some people are still wondering how to build a P2P payment app, whereas others are already on the path to create one.
However, peer-to-peer payment apps (P2P) are vital for boosting each sort of mobile payments. This includes splitting of bills, sending remittances, and booking trips.
Moreover, financial technology gets renovated when payment applications are built, as it permits its users to make payments via peer-to-peer apps, m-commerce apps, mobile wallet apps, and cryptocurrency apps.
You must be astonished when you will know that over 62% of American Millennials users opt for P2P mobile payment apps. This is because it is extremely secure, convenient, and relatively fast.
In addition to it, P2P is nothing new. It is used in various services including bookings, recharges, bills, payments, etc.
With this, you must also know that a robust P2P app assists the users to obtain paperless transactions. With so many advantages that it offers, P2P payment apps are gaining huge hype these days.
If you are wondering how to create a P2P payment app, this article has got you covered. This guide is all about peer-to-peer payment apps. Read on to delve into the world of P2P apps!
What do you mean by peer-to-peer payment app (P2P)?
A P2P app is also referred to as the peer-to-peer payment app. It basically acts as a middle man who helps the users to transfer funds or a substantial amount from their bank to a third-party’s bank. With the help of this robust app, a user enjoys enormous facilities. They can split the bill, pay for any service, or transfer money.
The best part of this app is that it is extremely secured. In addition to it, you can even make use of your debit or credit cards to transact via this app.
Today, in the digital world, the market is loaded with payment apps, namely Applepay, Venom, Googlepay, PayPal, etc. these peer-to-peer apps have gained a tremendous amount of popularity in the past years. This is why the users always welcome any new payment app if they find it to be robust and secure.
If you have noticed, PayPal is used in a huge number of apps these days. This is because it is one of the first services to occupy the niche of the P2P payment app. P2P payment solutions basically help the user to transfer money between the card owners of distant banks.
Why are peer-to-peer (P2P) payment apps so popular?
Peer-to-peer payment apps are undoubtedly popular. But the question is, why so?
Well, looking back in the last few years, these payment apps have gained huge attention from the public in comparison to the bank payment apps. According to research, the total number of downloads of banking apps have seen a rise of 10% only. On the contrary, the P2P apps downloads have tripled to 46 million from 17million in the US.
The major reason for this is that these P2P apps permit their users to make payments in a single tap from their smartphones. Life has been so easy before. Instead of standing for hours in the queue, these P2P apps have made the payments relatively easy and hassle-free.
The users simply need to link their bank account once and they are all set to enjoy fast and easy money transfer.
What is the function of a peer-to-peer(P2P) payment app?
Generally, the main function of a payment app is to make payments. However, an ideal and robust peer-to-peer app helps its users to,
- Helps to make payments to a merchant or landlord on an instalment basis.
- Make payments to the cab or taxi services along with discounts.
- Settling balances on borrowed money.
- Set a certain limit for borrowing and withdrawing at certain times and intervals.
- Transfers money to the requesters to borrow money on your contact list.
- Splitting bills among several people for trips, outings, etc.
- Transfer money to your close ones.
- Make important payments including utility bills, services, etc.
In addition to this, the P2P app permits money transfer outside geographical boundaries too. Certain P2P apps help you to transfer funds to people who are not in your contact list or group. (Unknowns).
What are the different types of peer-to-peer payment apps?
There are several types of peer-to-peer payment apps. Few are,
Banking facilities
This category of payment mobile apps is provided by the banks to ease the transaction procedure of their clients. By utilizing this payment app, the user is allowed to withdraw or deposit funds right from his bank account regardless of the area he is in. however, in turn, the particular individual who is about to receive the payment should own an accurate POS system. Apart from this, the mobile network operator should also provide quality services to its users.
Discrete facilities
This category of payment app includes services like Venmo or PayPal. It permits its users to make transactions via banking cards. The users are offered an electronic wallet in cases where they do not desire to transfer funds to their main account. The best part is that you get to enjoy almost every essential banking feature via these payment mobile apps.
Mobile OS process
The mobile OS approach is a sort of in-built payment services that can be enjoyed through any specific operating system. Few examples of them are Applepay, android pay, or Googlepay. These users are allowed to send and receive money via those users who are active on the same OS platform.
Social platforms
This is a shocking but amazing thing. Social media apps are not only bound to chatting, but people can send and receive money from their friends as well. You can transfer a certain amount to your friend via messenger. A perfect example of this is WhatsApp. Whatsapp launched its peer-to-peer app in India long back and with time, it became trendy as well.
However, it is recommended that such facilities of P2P apps are only available when you develop a social media app.
How does this peer-to-peer payment app work?
The working process of these P2P apps is extremely simple. Any such user who desires to use the P2P app needs to register on the particular app. With that, the app demands basic information like email id, name, and password. Also, this user needs to link their bank account with the app as well to make payments by the app.
While a user sends or receives money, the user has to add the name of the recipient and mobile number. With this, the amount that the user wants to transfer has to be entered as well. Once done, the user will be directed to the page where the app will ask for a password in order to complete the transaction process.
This double security makes these P2P apps extremely secure and trustworthy. Moreover, the time taken here to transfer the money is tremendously less as compared to the time taken by the banks in order to transfer funds.
Why should you create a peer-to-peer payment app?
As said earlier, P2P apps are gaining huge importance with time. Therefore, creating a P2P app at this time is a great idea.
Here are a few reasons why you should.
- People die for convenience. As these apps are convenient, your app can gain a massive fan base.
- These P2P apps are about to gain top heights in the coming years due to the endlessly evolving technology.
- As the financial sector is witnessing powerful technical advancements, it will be extremely beneficial to invest in payment apps. This will not only raise your brand value but will give a great fight to your competitors.
It is very simple. If you want to build a name, try investing in payment apps. Creating a robust app will help you reach heights.
How to build a P2P payment app?
Below are the steps you must undertake in order to build a P2P payment app.
Select a P2P payment type
First and foremost, you need to select the sort of your P2P app. As banking services as essential, think accordingly.
Give priority to the mobile platforms
If you have a limited budget, start with one single platform, either iOS or Android.Later, you can develop it for other platforms as well.
Pay attention to all the necessary features
Besides implementing MVP features, certain features are extremely important for the proper functioning of the app. Make it unique.
Look at the security part
This point is the most essential out of all points. If your app is not secure, no one will use it. It is important as you need to look after the security of all your users.
Add security features, as each of the security features in the mobile device should remain activated. From face recognition to the fingerprint scanner, everything should be in use. In case, any user’s device is unable to support such security features, a two-factor authentication, password authorization, and SMS with a code or OTP must be activated at the earliest.
The interface should be friendly
Make sure you build an attractive and intuitive UI and UX. No user would like a complicated or complex app. It should be user friendly so that it is accessible to each user. Try not to complicate the UI/UX.
Conduct an appropriate testing
Before you launch your app, make sure you test it properly. The engineers must perform all the vital types of testing to make sure the functions are proper and apt. there should be no bugs or lags in it. However, pay attention to regulatory compliance as well.
What are the features that must be included in the P2P app?
There are a few essential features without which the app would not function properly. Without these features, your app can't survive in the market.
Therefore, when you create a P2P app, make sure you include,
An OTP/unique ID
With this, the user gets to verify his ID and enter the password as many times he is about to make a transaction. This is an important security step. In cases of highly secure P2P apps, the apps demand an OTP. In fact, the fingerprint scanner acts as identification too.
Digital wallet
The digital wallet should be included in the app where the user can store their information on discounts, in-app funds, cards, and offers.
Push notifications
This notifies the user about any activity that takes place in their account or wallet.Besides this, the user gets important updates on due dates, pending bills, discounts, etc.
Send/request money
The chief feature of this app is to send or request money. The process should be easy, simple, and speedy.
Generating invoice
The users must be able to scan or send bills and generate invoices according to the payments that they make. All these features should be available in the app.
Transaction history
The app must have all the transaction history details so that the users keep a check on all the payments that they make.
Transfer to bank
These P2P apps should be able to transfer funds to the bank accounts directly once it is linked with the bank. This is a must-have feature in mobile payment apps.
Messaging feature
Many a time, a user might need to add a few details along with any specific transaction that he makes. Therefore, a chat app is required so that communication is faster and easier. Moreover, having a chat app feature will act as a bonus to your P2P app.
Conclusion
Peer-to-peer apps are presenting a new way of making payments these days. Compared to the last few years, making payments was never so easy. Also, the increasing number of usage says that the users and public are gradually shifting from the physical form of payments to digital payments. This is a good step towards the betterment of the future. Therefore, this is probably the best time for investing in a robust P2P app to gain extreme advantages.
However, P2P apps will still undergo various transformations in the coming future. This market is all set to fight its competitors and experience a rise in digital payment services. With so many skilled and experienced developers, we are hoping to see promising changes in the coming future.
In fact, if blockchain technology and cryptocurrency are integrated into the development of these apps, the future of P2P apps will experience even bigger heights.
Now you know how to build a P2P payment app.
