Is it the right time to roll out your P2P mobile payment app?
With all the help of digitalization, the way we make payments is constantly evolving. We are already storming our way through a cashless, contactless, and real-time payment world in which online payment is a cultural norm. From grocery shopping to booking a table, online payment is accepted everywhere, and paying cash is massively reduced. It has made people's lives a lot easier and more inclined toward cashless payment options, as it also helps users travel and shop from almost anywhere in the world.
Imagine, you are out running errands but end up with a shortage of cash in your wallet and the store does not accept any mode of payment apart from cash. What are you left with? Again, you are in an awkward situation where you might need to wait for someone to come your way with cash or just remove the stuff from the cart. Removing stuff at the last moment from the cart is the worst thing ever, which we should always avoid, and this is where the concept of digital payment along with P2P mobile payment is on the go.
A P2P payment app is also known as a peer 2 peer payment or money transfer app that helps a user send money to peers like friends, family, relatives, employees, shopkeepers, and so on. It helps transfer the amount between both parties without any intermediaries. For example, PayPal is one of the first digital payment platforms to offer P2P money transfers via email. A P2P money transfer or a mobile payment app has some standard highlights that make it unique.
The payment apps are developed for personal use, mostly for users who know each other well.
The funding requirements across different P2P payment apps vary a lot.
Primary types of P2P payment apps
Standalone payment app: A self-encapsulated ecosystem that helps users deposit money directly from their bank into the app’s wallet and afterward transfer the funds to other users who use the same app. For example, Paypal, Venmo, Paytm, etc.
Foreign exchange payment app: As the name suggests, the foreign exchange payment app helps users send money to their peers instantly. For example, payment applications likewise help their users send money easily and with a lower exchange fee than as compared to banks.
Social media-centric payment apps: With the advancement of technology, several social media giants like Facebook, Snapchat, WhatsApp, and others have now launched P2P payment apps. Facebook and WhatsApp have launched their own digital payment features, which help users transfer and receive funds via UPI ID or QR code. Facebook Pay is available in the US and sending and receiving money on WhatsApp is available in India.
P2P lending app: Lending apps, or microloans and wallet credit apps, help users get money credits with interest rates lower than banks. The said apps are beneficial for users in an emergency situation. It helps them manage their finances and others.
Bank-centric payment apps: Generally considered as P2P apps, payment gateways that link banks as one of the acting parties are divided into two categories. First, the bank provides a mobile payment application for easy transfer and receipt of funds. Second, a partnership of third-party payment applications with selected banks in which all the transactions are ensured by the third party and the bank is not directly responsible.
How does it work?
The working prospects of payment apps are complicated in nature because different payment apps use different authentication, security, and payment gateways with the same fundamental principles. The common fundamental principle followed by a majority of online payment apps is their incorporation with digital wallets, where a user can deposit money from a bank account and transfer it when needed.
P2P transactions have two options:
Transactions with the same payment app: Under this option, it is necessary for both parties to have the same payment app installed on their mobile phone. The process of sending money includes inserting personal information like a phone number or email address and transferring the amount from your e-wallet to the recipient's e-wallet. For instance, payment apps like Paypal and Paytm.
Transactions without the same payment app: This option allows users to effortlessly transmit money from their payment app to people who do not have the payment app. The process includes inserting the credentials of the receiver into the app and paying the amount to the receiver in one go.
Here’s how to develop one
Building a successful payment app requires a clear perspective on the market, careful preparation, execution, and improvisation. So, before you start building a payment app, it is advised to research the market properly.
Step 1: Select the app type
Once the research and goals of the app are defined, select the type of payment application you want to develop. There are several types of payment applications that one can opt for. The most common choices amongst apps are standalone apps, social media-centric apps, foreign exchange apps, and bank-centric apps.
Step 2: Pick a platform
Once the application type is selected, now look for the platform that best supports the type of payment application. If you are low on budget, ask your payment app development company to select the right platform. The most common platforms offered are Android and iOS.
Step 3: Select the tech stack
Once the selection of a platform is done, the technology stack depends on the type of platform. Apart from this, if you are creating an app for small businesses, try to select the stack that offers better results at a lower cost. Look for tools and tech stacks as per the need and platform for creating a sound payment application.
Step 4: Design the app feature
Starting with the designing and development of the app features, there are several important features that you should always include to add some additional functionalities and make the app more unique. In a payment application, it is important to add features like secure login, transaction history, sending notifications, payment and invoicing, customer support, and others.
Step 5: Launch and improve
Once the designing and development of the app features and other parts of the application are done. It is now time to launch the app to the general audience in the market. Once launched, keep an eye on the potential issues and try to fix them whenever possible. Also, monitor feeds and analytics for better improvement and usage of the payment app.
Use cases of a mobile payment app
Apart from just sending and receiving money, modern P2P mobile payment apps are capable of doing so much more. They help a user to do the following:
Payments to merchants for products and services
Setting the borrowing limits
Sending and receiving payment requests
Bill split with friends or any contact
Cross-country remittance transfers
In this technologically advanced world, people seek convenience and comfort in almost everything in their daily life. From using apps for getting utilities delivered to making payments online the payment option is witnessing rapid digitization and a sparkling fintech trend in the market. As people are shifting more and more toward digital payment systems, there is going to be an immense demand for payment apps. One can get their payment app with the help of an Android App Development Company, like Mrmmbs Vision offering you the services that deliver lucrative solutions in the market.
Posted By: Mrmmbs Vision