Mobile payment apps are hastening the shift to a cashless, card-free, order-in-one-click, and contactless payment world. Bill splitting, remittances, travel booking, and cost management are all streamlined and optimised. Fintech is altering the way we interact with money – mobile wallet apps, m-commerce apps, cryptocurrency platforms, peer-to-peer payment apps, and so on!
Today’s market is flooded with Peer-to-Peer (P2P) payment apps that allow users to send money to others using a credit/debit card or other contactless methods. These applications not only help to avoid visiting ATMs and banks, but they are also proving to be the ideal companion in the field of dividing rentals, sharing meal costs, and splitting vacation bills.
Global P2P transactions are predicted to reach USD 369.8 billion by the end of this year, with a user base of roughly 8 million by the following year. Indeed, by 2024, the worldwide P2P payment market is expected to be valued at USD 3217.34 million.
There are untapped niches. The financial inclusion rate is merely 69%. This means 31% of the world populace still don’t use payment solutions. You’re surely developing the next unicorn product for your business if you have an excellent marketing plan for this set of unbanked users.
A model for a new market can be replicated. Business and monetization techniques similar to PayPal or Stripe can be replicated to carve out a position for your p2p wallet service in a booming market. Stripe’s acquisition of Paystack is a fantastic example.
What is Peer-to-peer (P2P) payments?
Peer-to-peer (P2P) payments, often known as person-to-person (P2P), are transactions that are sent from one app to another. P2P payments may be used to pay for things like vehicle rental, lunch, or a ride. Using a suitable smartphone app, one individual can transfer funds from his or her banking account or credit card.
PayPal was one of the first services to cater to the specialty of peer-to-peer payments. PayPal is now utilised in a variety of apps. Many additional platforms, on the other hand, are entering the global P2P payments sector.
P2P payment solutions enable money transfers between bank cardholders, even if they are customers of different banks and payment systems such as Visa or MasterCard.
Types of P2P payment apps
Extensive research is required before designing a peer-to-peer payment app, just as it is for an iOS or Android app. The most frequent types of P2P payment apps are as follows.
Standalone services
This sort of P2P payment system has a built-in function for transferring funds. They also offer a mobile wallet option that allows users to save money before transferring it to another bank account or app user.
Since you’ll be directly holding consumers’ money and facilitating online payment, you’ll need to comply with several legal compliances. Dwolla and ClearXchange are two examples.
Bank centric
Bank-centric apps include banks as participants in the money transfer process.
You’ll need an API from a bank or credit card issuer if you’re making a financial app. It transfers funds from customers’ bank accounts rather than the platforms. These applications can instantly take money from or deposit money into bank accounts. In this case, the mobile network operator must ensure QoS (Quality of Service). Dwolla and ClearXchange are two examples.
Social media-centric
Payment methods for social media-centric P2P services are integrated inside the social media app.
However, as a founder, you might want to explore developing API-based solutions that can link to several social network accounts.
Facebook, for example, offers a payment option in its messenger that allows users to send payments while using their accounts.
How to build a p2p payment app: Useful Tips & Tricks
Targeting a specific niche
One of the most important criteria in achieving success is to target a certain niche. It might be a specific target audience segment. By using this method in the beginning, you may avoid direct rivalry with major companies like Stripe.
On boarding process
Any mobile app must have a thorough onboarding procedure. Furthermore, it is significantly more important for financial services apps. Because customer attraction is expensive, you must inform potential users about your product’s benefits and capabilities as soon as the app is released.
Development as an MVP
The more sophisticated the product you want to develop, the more compelling it is to start with an MVP. This method helps you to quickly obtain user input, evaluate your assumptions, and select the best development path.
Testing
Even when it comes to an MVP, testing, testing, and more testing are required. If you want to , you may start with the bare minimum of features, but the ones you do have to perform perfectly. If customers encounter several technical issues at the outset, they will just delete the programme from their devices.
Safety
The importance of safety cannot be overstated. When it comes to a financial app, customers are willing to overlook a sloppy user interface, a limited feature set, and even poor performance. They do, however, want to be certain that their money and personal information are secure.
Use third-party APIs
Use third-party APIs and ready-made solutions whenever possible (libraries, frameworks, UI kits). It’s pointless to waste money and time building each function from scratch when there are already suitable ready-made alternatives available.
P2P Mobile Payment App Features to Include
Two-Factor Authentication (2FA)
The money transfer app development necessitates a high level of security. It is important for preventing unauthorised access to sensitive data and mitigating other potential dangers. Multi-factor authentication accomplishes this task admirably by providing an additional security layer.
Send/Request Money
This is an essential feature for any peer-to-peer money transfer application. It makes no difference whether you use a peer-to-peer money transfer API or create your platform to do it. In both circumstances, the 3S rule must be followed: safety, speed, and simplicity.
User Wallet
This is where your software stores information about user accounts and bank cards in a centralised location. This function also allows users to rapidly check the money that is available for usage. Don’t forget to include a feature that allows your app to easily scan bank cards and upload them to an account.
Transaction History
This function allows you to save data on incoming and outgoing payments, as well as filter them by different periods. The tool will allow users to look up information on a specific payment made at any moment if necessary.
In-app Messages and Push Notifications
Your app may utilize this feature to give consumers immediate notifications informing them of money transfers or accruals. This functionality may also be used for marketing purposes, such as notifying users about new specials or deals, and so on.
Sync It with Contact List
That is both a useful feature for consumers and a good marketing strategy for a peer-to-peer payments app to swiftly develop an active audience. New users may immediately discover which of their connections they can trade money with after downloading the app.
Chatbot
Peer-to-peer payment systems must include a chatbot that can answer any queries that may occur when transacting funds, incorrect deductions from accounts/wallets, or when the user loses internet access.
Conclusion
Financial organisations and individuals alike are embracing the rise of peer-to-peer payment platforms. This app may take your business to the next level by creating a new revenue stream as a strong and dependable money transfer solution. Its growing popularity proves that people are gradually shifting away from real money and toward digital money, which may be the future.
So, if you want to acquire the first-mover advantage, now is the best time to invest your time and money in mobile digital wallet app development. P2P payments are still a small industry that will experience massive upheaval in the future years, and you must be the first to capitalise on those benefits.
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