Money Transfer App Development Guide

Recent research studies show that in 2019, the number of smartphones surpassed five billion worldwide. The majority of owners use mobile devices to make peer-to-peer (P2P) payments.

In this short article, you’ll read why the popularity of such platforms is growing every day and discover how to create a mobile payment app step by step.

Benefits of Peer-to-Peer Payment

Digital wallets allow the owner to achieve revenue quickly enough. The app industry’s revenue demonstrates more than 200 percent growth over the last decade, and Statista research proves a great monetization perspective.

Peer-to-peer apps offer customers a convenient payment method. With P2P transfers, users can easily send and receive money, and don’t need intermediaries. Other benefits are:

• Transparency and multiple layers of security for money protection;
• Acceleration and streamlining of all types of mobile payments;
• The ability to conduct monetary operations through various devices and bank cards; and
• Availability 24/7.

How Does a Peer-to-Peer System Work?

Peer-to-peer platforms transfer money between accounts or bank cards. Operations are carried out using a web or mobile app that acts as an intermediary. Systems can operate with fiat currency only or allow the transfer of crypto-money, too. In fact, the entirety of blockchain-oriented apps are created with P2P payments and crypto-wallets in mind.

There are several types of services:

• Standalone services are independent wallets that assist a user in performing card payments and keep money before withdrawal;
• Bank-centric services allow transferring money via partners;
• Social media-centric services are P2P apps or payment features developed by Google, Facebook, and other media giants; and
• Mobile OS-centric systems like Android Pay or Apple Pay are mobile device features that allow money transferring and buying goods via NFC PoS terminals.

How to Monetize a Mobile Payment App

There are various monetization models:

• Premium service (the Freemium). The main functionality is free, but high-end features like cryptocurrency transactions are available for a fee.
• Affiliate marketing. You can allocate advertising space at the user interface (UI) and earn revenue by charging advertisers for each ad show or click.
• Micro-payments and set up in-app purchases. These transactions involve lower amounts of money and usually occur via digital applications.
• Membership. Users have to subscribe to get unlimited access to the product. There are recurring fees for membership or other benefits.
• Sale of source codes and APIs. If you build a mobile money transfer system, you can allow technical services as a separate product.

Features, Security, and Legal Issues

The P2P system should meet the financial regulations of the United States, Canada, Europe, China, or any other jurisdiction where the app will run. You also have to ensure that the system complies with PCI-DSS standard requirements and doesn’t expose the credit card number. It’s recommended to add fingerprint identification, two-factor authentication, and other protection tools.

Ensure the system supports all the primary online payment methods: P2P within the network, on-the-spot transactions at retailers, etc. It is also crucial for the system to support all basic functions:

• Admin panel and customer’s digital wallet for managing features;
• Unique ID/OTP (one-time password) to protect transactions;
• Money transfer to a bank account or card;
• Transaction notification and chat/chatbot;
• Transaction invoices, etc.

Building and Estimation of P2P Payment App

Building a payment app includes several mandatory steps. The first one is the discovery and planning stage, where you prioritize the platform’s type, architecture, and tech stack.You have to figure out:

• The kind of mobile app: native, cross-platform, or hybrid;
• The third-party SDKs and APIs for payment integration, ID verification, pushups, or similar features; and
• Cloud services platforms, databases, DevOps tools, etc.

When you have selected the platforms and development approach, you have to think over UI/UX design — it should be attractive, intuitive, minimalistic, and straightforward. For iOS apps, you can use guidelines like Apple’s Human Interface, and for Android,Material design.

The next step is code-writing and SDKs/APIs, databases, and payment gateway integration. You also have to test the app using manual and automated tools and various techniques. After developing a minimum viable product (MVP) and a full-fledged product based on it, fixing all errors, you can publish it to the Apple AppStore and Google Play.

The development costs depend on the solution’s complexity, technical stack, developers’ location, and other factors. Simple apps can take up to 600 hours, while highly advanced ones take up to 800 hours and more. The total development price ranges from US$20,000 to US$140,000 and more.

Conclusion

People worldwide are migrating from physical to digital financial transactions. P2P money transfer app development is a segment that will undergo massive transformation soon, and you can be the first to adapt to the new conditions. Creating a platform with robust and legally compliant peer-to-peer solutions simplifies routine transactions for your users, so it’s a win-win strategy for everyone.

Are you interested in learning more about building a money transfer app? Read the full article here.