Comprehensive Guide on How to Build a Peer-to-Peer Payment App - PowerPoint PPT Presentation

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Comprehensive Guide on How to Build a Peer-to-Peer Payment App


Cash-less, card-less, and yet bankable- the peer-to-peer payment applications are here to stay. In today’s digital world, the ways we shop, work, live, and transact are massively changed to save our time and efforts. Let’s take an example of sending or receiving money straight away using the smartphone. Peer-to-peer or P2P payment application can make it possible conveniently and securely. Let’s understand more about such apps. – PowerPoint PPT presentation

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Updated: 27 April 2020
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Title: Comprehensive Guide on How to Build a Peer-to-Peer Payment App

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  • Cash-less, card-less, and yet bankable- the
    peer-to-peer payment applications are here to
    stay. In todays digital world, the ways we shop,
    work, live, and transact are massively changed to
    save our time and efforts. Lets take an example
    of sending or receiving money straight away using
    the smartphone. Peer-to-peer or P2P payment
    application can make it possible conveniently and
    securely. Lets understand more about such apps.
  • What is P2P App? How does it work?
  • Simply put, the peer-to-peer payment applications
    are money transfer apps. These apps act as a
    middleman and help users to send/receive money to
    and from family members and friends. The
    peer-to-peer or P2P app is connected to the bank
    account, credit card or debit card of the users.
    The money transfer using P2P apps may take either
    a few minutes or up to three days depending on
    the bank regulations and prevalent money transfer
  • In recent times, P2P app development has started
    gaining ground worldwide. Many startups and
    entrepreneurs want to leverage the benefits of
    such apps. If you want to build a peer-to-peer
    payment app than this blog is for you as we dig
    deep in the peer-to-peer app development.
  • Lets start with four types or four business
    models of P2P apps.

  • Four Types of P2P Payment Apps
  • Just like developing an iOS or Android app,
    extensive research is necessary before developing
    a peer-to-peer payment app. Here are four common
    types of P2P payment applications.
  • 1. Bank-centric Apps Examples are Dwolla and
    ClearXchange. Many banks have dedicated mobile
    payment applications or devices that are designed
    to work with a specific Point-of-Sale (POS). Such
    apps are capable of withdrawing from or
    depositing into bank accounts directly. Here, the
    mobile network operator needs to provide QoS
    (Quality of Service) assurance.
  • 2. Standalone Apps Examples are PayPal, Square
    case. These apps offer both online and in-person
    P2P payments either in the bank accounts or in
    the stored currency accounts. These apps have an
    eWallet feature by default that makes it
    convenient for the users to either store money or
    send it to their peers. It is fair to mention
    that these apps have no support or backing of any
    banks. Users in developing countries can leverage
    the benefits of this non-bank model.
  • Read More Developing Mobile Wallet
    Application- That Everyone Loves!

  • 3. Mobile OS-based Apps Apple and Google have
    their own payment apps known as Apple Pay and
    Android Pay respectively. These apps or
    functionality allow money transfers inside their
    ecosystem only.
  • This model works wonders in developed countries
    where the well-established infrastructure for
    payment in place. Tech-savvy customers or users
    embrace this model willingly. This model works on
    tokenization and fingerprint authentication to
    ensure a safe and swift transaction.
  • 4. Social Media or Messaging-based Apps Examples
    are Square Cash and Snapchat. Social media-based
    payments are useful for sending frequent payments
    to our contacts. These apps do not require
    stringent authentication for initiating a
    transaction because usually such transactions are
    done among regular contacts.
  • These apps can remove friction from the entire
    process. WhatsApp is experimenting with a
    texting-based money transfer service in India.
  • In recent years, P2P payment applications have
    gained a lot of popularity worldwide. In many
    regions, they are more popular than bank payment
    apps. As per the survey conducted by eMarketer,
    peer-to-peer transactions using mobile phones is
    expected to reach 612.23 billion by 2023 in the
    US alone.

  • Source
  • This increasing popularity of peer-to-peer
    payment applications is because of its
    user-friendly features and excellent
    functionality. Lets go through the key features
    of the P2P payment application.
  • Must-have Features for Peer-to-Peer Payment
  • The mobile app development company includes the
    following major feature in the P2P payment app.
    These features will make your app popular and
    competitive in todays challenging market.
  • Registration
  • Just like a mobile wallet platform, the P2P
    payment app also needs the users registration
    using a mobile number or social media accounts.
    Once the registration is verified, users can add
    their bank details and credit or debit card
    information. However, standalone payment apps
    like PayPal do not require to add bank
    information immediately.

  • Send Invoice/Bill
  • It enables users to send the invoice or bill to
    the person who is going to make the payment for
    specific products or services. Whats more, the
    peer-to-peer payment app should generate the
    invoice and send the same to senders and
  • Transaction History
  • This feature shows a summary of all transactions
    on a weekly, monthly, and yearly basis. Every
    digital payment solution provides this feature to
    its users. This feature adds convenience as the
    users can check the transaction history without
    leaving their homes.
  • Push Notifications
  • Ticket bookings, due dates, loyalty points, and
    many other details can be given through push
    notifications. This is one of the most important
    features of the peer-to-peer payment app. The
    push notifications also notify the users of every
    payment-related activity.

  • Digital Wallets
  • The integration of digital wallets can make the
    P2P app a complete digital payment solution. This
    feature replaces the physical wallets and users
    never lose their money and ATM cards. Even if the
    user loses the smartphone, it is possible to
    access the digital wallet from other smartphones
    or devices. The users unique ID and password can
    protect the amount every time.
  • Unique Identification or OTP
  • The finance app development integrates the unique
    identification or OTP feature in your P2P payment
    app. This feature sends a unique ID or One-time
    Password (OTP) to verify every transaction so
    that the user can confirm it before the amount
    gets deducted from the wallet or bank account.
    Some P2P payment apps ask for OTP during every
  • Also Read- How Much Does It Cost to Develop
    E-Wallet Mobile Application?
  • Bank Account Sync
  • Though the Peer-to-Peer app is developed as a
    strong and safe option to the traditional banking
    system, many such apps enable users to sync their
    bank accounts. When the company or entrepreneur
    wants to build a peer-to-peer payment app, they
    tend to stay away from enforcing any change from
    the traditional way of banking, and therefore,
    they give the bank account syncing feature in the

  • Text Notification
  • This feature notifies the user when a payment is
    initiated or received. In brief, whenever any
    change in the users digital wallet occurs, they
    will get the notification. Also, the mobile app
    development company can integrate customized
    alert systems to notify the app users about the
    upcoming bill payment dates, so they can get rid
    of remembering important dates.
  • Currency Rate Conversion
  • The peer-to-peer payment apps should be capable
    of handling international transactions. Here the
    biggest challenge remains is the variation in the
    currency rates. It is necessary for the app to
    convert the users money in a foreign land.
  • However, once this feature is provided, it can
    help people get rid of visiting currency exchange
    centers frequently. This feature also enables
    users to transact as per their budget.
  • Chatbots
  • Chatbots are aimed at answering queries of a
    user. This feature works as a virtual assistant
    on a 24/7 basis. The user may want to know many
    answers before initiating transactions or even
    registering in the app.

  • The chatbot can give quick answers that will
    enhance the users satisfaction and the users
    remain loyal to the P2P payment app for a long
  • Major Challenges in P2P App Development Process
  • The digital payment solution development process
    has a set of challenges that the app developers
    need to overcome. We can classify these
    challenges into two categories-
  • Technical Challenges This type includes app
    security, PCI DSS Compliance, and currency
    conversion challenges. Features like Touch ID,
    fingerprint recognition, and two-factor
    authentication can make the app secure. Also, the
    P2P mobile application can send instant
    notification to the users when their money gets
    transferred or deducted.
  • Non-technical Challenges This type includes
    regional or country-wise limitations,
    jurisdiction-related challenges, and
    mindset-oriented issues. Mostly, non-technical
    challenges occur because many people still do not
    want to share their confidential financial data
  • P2P Payment App Types
  • Peer-to-peer payment applications are mainly of
    three types- Native, Hybrid, and Web. You need to
    consider various aspects while determining the
    type for your P2P application.

  • Native apps These apps can work well on either
    Android or iOS devices. You can build a
    peer-to-peer payment app with the help of Android
    app development or iOS app development.
  • Hybrid apps Web apps wrapped in the native
    design are known as hybrid apps. Such apps can
    easily adapt to the interface of the respective
    OS and devices. However, they are not designed
    exclusively for any native platform.
  • Web apps These are server-based apps and users
    can access them across any platform through the
    Internet. The web app has the same appearance
    across iOS and Android devices.
  • How to Secure P2P Payment Apps using Blockchain
  • Peer-to-peer networks are highly secure and more
    reliable than centralized systems. What makes
    them secure? The answer is Blockchain technology.
    The cross-border payment is the biggest weakness
    of P2P transactions.
  • Banks can send user data with the help of SWIFT
    and other related technologies during
    cross-border transactions. Now, this process
    remains slow, costly, and non-secure.
  • The blockchain technology can make this process
    swift and secure. However, the mobile app
    development company needs to put some effort to
    give the cross-border transactions a blockchain
    advantage. Also, the future of peer-to-peer
    payment apps will be interesting as
    cryptocurrency and blockchain technology can be

  • The blockchain is a public ledger that records
    all the P2P transactions. It is a highly secure
    and immutable way to manage P2P transactions.
  • Finally, the cost of a P2P payment app like Venmo
    will be around 30000-150,000. Here, the apps
    complexity and the number of features play a key
    role in determining the app development cost.
  • Also, the hourly rate of developers is the
    deciding factor. You can get a P2P payment
    application with necessary features at 30000
    from India because the hourly rate of Indian
    developers is around 30 to 70 an hour, which is
    way less than the same of the US-based app
  • Concluding Lines
  • The trend of peer-to-peer payment applications
    gains traction of financial institutions and
    people alike. As a robust and reliable money
    transfer solution, this app can take your
    business to the new level by generating a new
    stream of revenue. If you want to come up with a
    customized P2P application, the time is just
    right as the world rapidly switches to the online
    payment method.
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