How to Develop a P2P Payment App for Your Business?

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Our lives are made a lot easier by mobile payment apps. As our society changes, we depend more and more on services like P2P payment apps. Customers adopt them because they are simple to use and allow them to save time and effort, both of which are vital in these tough times.

According to a study conducted by Bank of America, more than 65% of consumers actively utilize P2P payments, and the younger generation can no longer imagine living without them. More than 45% of those surveyed claim they plan to try digital financial services soon. At least 70% of those who use P2P money transfer apps admit that convenience and time savings were their primary driving forces, while peer influence was cited by 50% of respondents. Additionally, 16% of participants simply dislike using cash.

Peer-to-peer payment apps have made their way into consumers’ daily lives. Compared to 10 years ago, people find it annoying to walk to the ATMs or send a check to complete payments. It is the key factor driving their increased interest in peer-to-peer payment apps. P2P applications have solidified their position as a top-notch and trustworthy method of payment as well as a convenient and safe way of money transfer.

Do you intend to launch a startup in the finance industry? In this article, we describe the industry trends and app features and share steps to develop a P2P payment application.


What is a P2P payment application?

A P2P payment application is software that acts as an intermediary to help customers send money from their bank account to another person’s bank account. Peer-to-peer applications have become highly popular among young people, specifically generation Z, who trust providing their financial information with external software more than the older and less tech-savvy generations.

Peer-to-peer payment apps like PayPal, Zelle, and others are available in the US. WeChat, AliPay, and other services are widely used in China. Their creators have captured the concept of rapid, cross-border payments with simple on-ramps and off-ramps. In other words, it became possible to reach an instant settlement regardless of where you are.

When you already have a concept for your own app, you must first be aware of the existing trends in the industry and clearly understand the business need you are trying to fill. The global P2P payment market size was worth almost $2 billion yearly at the beginning of the decade, the Statista data shows. It continues growing and is predicted to reach over $9 billion by 2030.


According to Statista, the research conducted in April 2022 showed that 42% of participants answered the question about their recent money transfer type with “a direct service.”

Key market development figures

  • By 2030, the worldwide P2P market is expected to reach $9,097.06 billion, according to Allied Market Research.
  • By 2023 the volume of payments made using payment apps will increase by 44% on a year-to-year comparison.

However, the market is highly fragmented and unstable. The major players encounter new rivals. The less significant ones invest time, money, and effort in P2P app development. Such initiatives and projects encourage the expansion of the P2P payment app market. They stimulate technological improvements, bring up upgrades, and open up new P2P payment opportunities and prospects.

Hence, we are going to analyze what peer-to-peer payments are capable of and why businesses should develop P2P payment apps. We will also highlight the advantages of this model of payments, which puts the social factor at the center.

Have you thought about having your very own reliable end-to-end payment solution that can help your company convert payments into strategic growth? Then the guide below will be helpful for you.

P2P apps: business models and types

Use cases vary from P2P to P2M (M is for Merchant) and beyond. While P2P payment apps have made life easier for consumers, merchants needed this kind of tool desperately. There is a whole category of merchants around the world that are struggling with collecting digital payments. 

Therefore, P2M is a very natural extension of P2P that makes everything much easier for merchants, freelancers, and every other small business, like hairdressers, gym trainers, food deliveries, etc. The app is allowing them to grow their business. 

You can do so much with your money in addition to P2M. Also, a lot of processes could be improved. Therefore, there are no limits to the products that developers will consider in the future, including investment products, remittances, payment cards, debit,  credit, etc. Giving people useful tools not only to store their assets but also to build their wealth is their new goal to make whatever method they wish to use their money delightful.

Main types of P2P apps

  1. Standalone merchant apps like Airfox, PayPal, Venmo, Square Cash, Alipay, M-Pesa, etc., are independent of banking institutions. They are free to set rules and policies of their own, they are also called non-bank platforms. The leader in this category, Venmo, covers 57.5% of the market. Their Wallet features allow users to safely keep and manage their funds in the app before moving to bank accounts. 
  2. Things are different with Bank-centric initiatives such as Popmoney, Zelle, Dwolla, clearXchange, and more. The banking entity’s involvement is a necessity here for making money transfers which are performed via credit/debit cards. However, it takes longer to perform the procedures. 
  3. When it comes to Social Media platforms like WhatsApp, Facebook Messenger, Snapchat, WeChat, G Pay Send, Square Cash, Kik, etc., users are able to make a money transfer via a debit/credit card while staying right there in their social network apps. It is comfortable and fast since no intricate authentication is needed to complete it. Moreover, most of the apps provide their users with instant bank-to-bank transfer features. 
  4. Mobile OS-centric apps like Apple Pay, Android Pay, and Samsung Pay make it possible to transfer funds only between users of Apple, Android, or Samsung accordingly. Additionally, it is possible to pay at Point of Sale locations, which are quite common in modern times, especially in nations where such fintech infrastructure existed previously, and consumers were at ease when using it.
p2p payment app

How to develop a P2P payment app?

The question “What is the next most critical need for the customer?” should be the main focus while developing essential features of your P2P money transfer app. That being said, there are two core features. 

Every industry in the world is complete once they tie social elements. Social integration is what makes your product valued in millions. No matter what it is, every product must have this social element so that it all seems fluid and like a natural extension of yourself. 

Regarding transactions, it is a challenging task, and the only way to succeed is for a development team to be passionate about the tiniest details. As a result, the cool software you are building should only have user-centric features and functionalities.

Digital wallet functionality, sending and receiving money, and sending bills and invoices are essential. The automatic currency conversion is awesome too. Push notifications, reminders, chatbots, bank account transfers, and transaction histories are among the other key things on the list of must-have features.

Aspects requiring exceptional efforts

  • Safety and Security provided by AI, RPA, and Blockchain tech wonders. Data security is of the utmost importance to e-wallets and P2P apps. There are two levels of verification, fingerprint login, OTP, and more methods to safeguard an authorized process. Unique one-time passwords and IDs have proved to be very efficient.
  • User Interface, pleasant design, engaging, easy to navigate. Icons, images, copy, and CTA are all about being personalized. 
  • Personalized AI Recommendations. Custom insights and analysis. User behavior is different, and with the right artificial intelligence integration, e-Wallets can study and classify purchases, track spending, analyze budgets, and more to offer useful insights. 
  • Performance and Interaction. End-to-end financial payment handling implies smooth and seamless functioning, no bugs, and easy assimilation with credit cards, bank accounts, bills, tickets, and all kinds of wearable devices. 
  • It is important to make your users stay, and creating various app-based programs for Loyalty and Rewards will work for that. Cashback, reward points, goodies, and freebies will make your users fall in love and be devoted.

How to build a P2P payment app: key steps

Building a fintech product with an objective in mind is key. Subsequently, when it makes sense, you must follow the market trends and add cool features like crypto. P2P payment app development is currently one of the most pressing needs in many countries.


The process of P2P payment app development includes 10 main steps and is not as complicated as it could appear at first. 

  1. Everything begins with defining the app type — one of those we have already described above.  
  2. Decide upon the list of features you want to offer your target users. 
  3. Then it is time to think and choose the most suitable technology for your app development.  
  4. Find the best custom software development team with deep expertise in this field and with the selected technology. 
  5. Design your app. Mind that every single detail in user experience is important. Think of a user-centric design for your app.
  6. Build the app. Closely follow the app development process with the project tech lead.
  7. Put significant efforts into app security to create a trustworthy product and build a high reputation for your business.  
  8. Facing regulatory compliance is challenging but rewarding. Ensure your app fits all the requirements of the target markets.
  9. Testing and fixing bugs. Running a thorough QA analysis before delivering the app to the market is essential. 
  10. Launch and promote your app. Market your app with the best features and advantages.

Following the rollout, it is essential to track the application’s usage to identify and quickly fix any potential issues that users might face. The payments via the app should be a pleasant experience; a customer should not face any difficulty in doing a real-time transfer to a friend. App usage should convey emotion. Ensure you apply a user-centric approach to every aspect of your P2P application. 

What is the risk of using a P2P app? 

Regardless of how reliable and secure technology is, there are always things to watch out for. The potential risks are related to certain app features. For instance, a tricky touch-and-go default setting in an app you use may transform a money transfer into a more “social” one where some of your transactions are made public.

There can also be issues with refunding after a mistaken purchase using Wallet funds. Or, after receiving money from someone else, a user can forget to transfer money into their FDIC-covered account. However, additional risks, like fraud, are frequent and apply to banks and fintech software in general.

While using any fintech app that means attaching your financial data, please always be aware of the most common vulnerabilities and potential risks. With our fintech app development experience, we have strong knowledge of how to prevent any issues in P2P apps.


Find your trusted P2P application developers

Nowadays, e-Commerce is used by merely all consumers. Most vendors accept Apple Pay payments or have a PayPal solution integrated into their platforms. In many markets, the majority of merchants accept payments with just two clicks on your smartphone. It makes P2P applications a trend and a must-have technology for businesses.

Applications for peer-to-peer payments are changing how consumers make payments in various ways, and they will continue to do so. P2P apps’ rising popularity reveals that customers are gradually moving away from physical forms of money like bank cards and cash toward digital money, which may be the way of the future.

This trendy solution helps businesses flourish. Therefore, if you want to succeed in your niche and your market, now is the best time to develop a robust P2P payment app. You will need a reputable software development partner to adopt all of its benefits and create a solid peer-to-peer payment application. Keep in mind that P2P payment software is still a limited market that will experience a tremendous change in the coming years.

Do you already have a concept for the perfect P2P app? Let us help you develop the ideal application for your needs, from the market analysis and design to the launch. Get in touch with our fintech development experts.

You may also find it interesting to read our article: “How Much Does It Cost to Build a Basic Trading Application.

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