The digital revolution that has changed every aspect of our lives, has made our life easy and comfortable. You can do shopping from home, attend meetings, learn new skills, and send or receive money right from your phone. As per allied market research, the global P2P market size was valued at 1889.16 USD billion in the year 2020 and is expected to reach 9097 USD billion by the year 2030.
Peer to Peer Payment app allows you to use a bank account, credit, or debit card to pay friends or family from your phone. The corona crisis has led to an exponential reduction in cash usage and it led to rising in the eCommerce industry. These P2P solutions drastically enhance the user experience for both the person receiving the payment and the person executing the payments. Now let’s identify the typical use cases, where peer-to-peer payments are commonly use.
- Split expenses such as bills, and others with your partner, friends, and housemates.
- Family or friends giving a cash gift.
- Collecting money for a gift.
- Paying money to a friend or relative.
- It also sets a borrowing limit for anyone and permits them to withdraw a few amounts at a certain time.
- It allows payment to a landlord or a merchant who is on an installment scheme.
- P2P apps permit money transfers beyond geographical boundaries as well.
Advantages of Peer to Peer payments
Peer-to-Peer payments have numerous advantages, let’s have a look at each of them.
P2P payments are easy to use
P2P payments applications and services are convenient and easy to use. It can be accessed from anywhere with a phone.
Real-time payments
Payments are done immediately with most of the apps, there is no hurdle or waiting for the cheques to clear. No need for someone to take cash out to pay you back, it is simple and quick.
Payment Notification
In every contactless payment app, notifications and reminders let us know if a transaction is about to be made. These notifications assist us in preventing sending money to the wrong person. Furthermore, it also consists of passwords so that none can make payments without you.
Contactless payments
Transactions can be performed without another person present. They are completely contactless and with the demand for social distance and avoiding contact, this is one of the most promising ways to pay someone without any contact.
Safe and Secured
Whenever you are using mobile banking solutions, they are more secure in many ways as they are encrypted and have fraud monitoring capabilities. Few apps are incorporating biometrics and automatic notifications for every transaction.
Features needed for a peer to peer payment app
While developing a P2P payment app, there are many options regarding features and functions. Here are some features that you must keep in mind while developing a P2P payment app.
Digital Wallet
A digital wallet is one of the main features of any payment application. With the help of a wallet, a user stores his electronic currency and makes payments. Generally, a digital wallet is amalgamate with card payment tokenization services from VISA and Mastercard and with an external service system, so they can have wide functionality.
Developing a digital wallet is a separate issue that must be given special attention before developing any app.
Send and request money
It is one of the imperative features, users should not only able to send money but can also request money from other users.
Send bills and invoices
For the convenience of a user, the app must have a function for generating a transaction invoice and bill that can be receive by both a sender and a receiver.
Currency conversion
Automatic currency conversion is one of the amazing features that make the P2P payments app most popular, so you should not give it up. By implementing this function, you will allow your users to make a cross-border transaction, pay for services and goods using your application while traveling, and not think about converting.
Unique OTP or ID
Security is essential for all payment apps. To eliminate unwanted transactions, and frauds, a user must confirm the unique ID and OTP. If you want to offer a higher level of security, you have to configure the need to enter a unique code every time a user logs in.
History of a bank account
The transaction history will enable your users to keep track of how much money they spent. Try to keep the information as long as possible. In the addition to these, the function of generating statements, downloading, and printing previous transactions is a great solution.
Types of P2P payment apps
To build a P2P payment app, here are the different types of P2P payment apps:
Bank-based services
Nowadays many banks offer clients P2P apps that ease payment processes. But in turn, users must have appropriate hardware such as a PoS terminal that accepts payments. In agency banking solutions, it is a type of branchless banking that allows the traditional banks to extend their networks of branches and services cost-effectively.
Vendors
Independent services offers users an electronic wallet where they can perform P2P payments using their banking cards. All independent services support Visa and Mastercard but they rely on particular services.
Mobile OS system
This is a well-known P2P service such as Apple pay and android pay, they are an integrated feature of the devices. In some old android, an iphones this facility is not available but P2P systems make it possible to send money only to iPhone and Android users. Digital banking ideas provide users to be independent and offer convenient payment methods.
Conclusion
From the above points, it is clear that peer-to-peer payments are playing a vital role in a cashless society. The P2P system acts as a middleman that assists a person to transfer funds from one bank account to another. To develop a P2P app must have a look at all the features that are mention above that will make the app successful.
