How to create a money transfer app: Pros and Cons, insights and obstacles

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money transfer app

Are you still in doubt if you need to create a fintech app? Are you afraid of all the risks and need a clue on peer-to-peer app development?  Keep on reading our helpful insights.  

The world is shifting to paperless, cashless, and thus contact-free operations now. Thanks to the Covid-19 pandemic, we have witnessed a stable growth of cashless payments and payment apps in recent years. So we can expect that the most daring forecasts about payment apps will definitely come true. 

Let’s find out what you have to know about peer-to-peer app development and how to create money transfer app.

P2P payment apps in brief

Days back, all financial operations were conducted only in the physical banks. People had to stay in lines to do even simple transactions. Those days are gone with people-to-people or P2P payment systems origin.  

Peer-to-peer systems refer to transactions made online or between two apps. It means that a user can quickly transfer money from a credit card or a bank account via the app. The most popular P2P solutions are Google Pay, Alipay, PayPal, and Vimeo.  

If you want to create a money transfer app, there are various spheres and businesses in which peer-to-peer app development is used: 

  • Financial startups;   
  • B2C providers and retail;    
  • Telecommunication service providers;
  • Logistics providers;  
  • Tech companies   
  • And private payments.  

Pros of P2P Payment 

One of the main reasons why payment apps are so popular is an opportunity to send and receive money on the go. All transfers can be carried out using a smartphone alone. There are no excess fees, and therefore, operation costs are low.   

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Among other benefits of P2P apps are: 

  • 24/7 availability with no delays, or ‘closed during the weekend’ options;
  • High operations security and transaction transparency;
  • Basic personal data needed by the system;  
  • Streamlining and acceleration of all mobile payments; 
  • Opportunity to make transactions from one account, on several devices; 
  • The ability to send digital currency to any bank account worldwide; 
  • Simple access to the history of transactions
  • And more.

Cons, obstacles, and P2P regulations

  • When you create a mobile payment app, keep in mind that any fintech product should meet all the financial regulations and restrictions of the target region. It’s one of the biggest obstacles and Cons of such apps development.  
  • For instance, in the United States, eight federal agencies are responsible for regulatory compliance. Moreover, there are 50 states with their own set of rules.  
  • Another drawback is that all P2P system providers must ensure secure data record management. It means they need to make sure that their app is compatible with the requirements of the PCI-DSS standard. 
  • To provide top security for your app, you also need data encryption and two-factor authentication to authorize transactions and foresee the protection against DoS attacks.

Valuable insights on how to build a p2p payment app 

If you want to implement a successful payment app, you should consider many things beforehand.  

Firstly, ensure your app supports modern online payment methods: on-the-spot transactions, e-commerce, and P2P within the network

When you make a payment app, it is also crucial to ensure that the system is scalable. Choose the tech stack so that the application doesn’t crash with the high load.  

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If you work with e-commerce sites, it is better to stay with a native mobile app because it allows paying for services or goods without delays. 

It is worth thinking about the following in advance: 

  • Rea-time currency conversion. There are over 180 currencies now. 
  • Geo–limitations. Consider all geographical restrictions before the app development.  
  • Disputes option. If a user doesn’t receive the money transfer, the application must be supported to settle the dispute.

When you first think about how to build a payment app, it seems the competition is too high, and the road is too long. Still, you can overcome these obstacles with a professional development team and a helpful guide. 

People are now shifting from physical banks and long lines to digital money and fast P2P transactions. Sure thing, the payment apps concept will transform in the coming years; however, hurry up to adapt your business to these new conditions. Today is the best time to start peer-to-peer app development. 

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