If you are reading this, it is obvious that you have thought of making an app that eliminates the hassles of the payment industry. But what’s your take on our current payment method? How do you feel about the procedures?
Isn’t it lengthy?
Yes, it is.
Deep down we all know that this very mode of transaction has become primitive. Especially when compared with the new p2p payment innovations of the last decade.
“So can we implement our latest peer to peer payment app innovation? How can we make our payment structure more convenient?” you ask.
Yes, you can.
In fact, a new p2p payment solution is already on the move and is trending at the same time. Although we are yet to accept it as “the” official payment system, the rising popularity of p2p payment solution is gradually shifting the market paradigm to a new direction. But how to build a P2P payment app? Is it still profitable?
Rise of Cryptocurrency in the Payment Industry
Soon, the world will see a revolution of the same magnitude as that of internet, television, etc. Plus the rise of cryptocurrency is acting like a big catalyst for this change. If we can synergize blockchain application technology and p2p payment system, then it would change the face of capital structure forever.
The financial institutions would no longer play the mandatory role of facilitating transactions. This new technology would abolish the very concept of central banking altogether. Thus making payments more secure (we’d be discussing why blockchain is more secure than traditional banks) and convenient on an individual level.
So are you already planning on monetizing this vast opportunity of P2P payment solutions? If yes, then you’re in the right place. In this blog, we will breakdown every step on how to create a p2p payment app, designed to fetch the desired level of conversions, thus establishing a strong consumer base in the global market.
Now Let Us See How To Build A P2P Payment App
Now that you have a basic understanding, let’s run through the methods and see how the P2P Payment system actually works.
Third Party Vendor Method
Here, you register your details with a third party vendor. This includes your bank account and credit card information.
The vendor will use these details to facilitate fund transfers between individuals. The traditional involvements of banks are excluded from this method. You have to download their application in order to carry out your transaction.
Apart from your bank details, your identity would include your email address using which you can send and receive funds from anyone using the application. There are many apps using this method, the most popular one being PayPal. Since you’ll be the third party here, you have to market it really well and keep the performance quality up to the mark. Else the registered user count would be too low, giving your peers the competitive edge. This is your first answer to how to make a p2p payment app. Let’s move on to the next.
The Bank App Method
This method is useful for banks and financial institutions trying to catch up with the digital transaction trend. Here, the corporation launches an app to facilitate all the transactions a bank does, but on an e-platform.
Once again, they’d use your email id for the process. Users who trust their banks over some third party can rely on this p2p payment technique for both security and convenience. They don’t have to install a third party app. In case you’re an owner of a bank or financial institution, you can implement this p2p vendor payment method to retain your consumers in this ever-changing digital environment.
Also, the one on the receiving end of any transaction won’t necessarily have to be a customer of that particular bank. This is a feature that gives bank apps an edge over the third party ones.
Social Media Method
It’s hard to imagine someone without a social media presence these days. Millions of users interact frequently over the net. That’s why p2p payment service providers like Facebook, WeChat, etc have come up with a p2p payment method enabling its users to transfer funds while texting. With increasing user base, this p2p payment method is pushing hard to become one of the mainstream money transfer techniques in the market.
In some cases, however, a third party vendor app might partner with a bank/credit card company for a smooth transaction. It is something that falls between the above-mentioned categories. But we’d recommended you to follow either of the three methods. It would ensure clarity for your consumers and set a fixed direction for you as well.
So, which one suits you best?
If you’re an individual/corporation/etc, go for the first method.
If you’re the owner of certain bank/credit card company/etc, go for the second method.
Or if you already have a social media app, then you can incorporate the third.
Whichever method you choose, the features and processes of building a p2p payment app are more or less the same. There are slight variations of course, but p2p payment method follows the same framework on which the app will be built.
What Are The Advantages Of Using A P2P Payment App?
Before installing any app, we go through its briefings in the Play Store and try to figure out that “something extra” which separates it from the rest. Same with p2p payment apps. We would obviously want to know the extra benefits and advantages it offers over the traditional methods. Prominent examples include PayPal, Google Wallet, etc.
Installing a p2p payment app would allow you to:
- Pay your landlord in an instant installment method
- Avail discounts paying for while our cab ride
- Transact instantly on an individual level
- Pay utilities without any delay
- Pay remittances across the globe in minutes
Entrepreneurs have sensed this need and have been searching for how to build a p2p payment apps. And have contacted different blockchain service providers. But how to make yours different? Let’s figure out the features that you can incorporate.
What Features Can You Incorporate In Your P2P Payment App?
Now let us explore the possible features you can use to make your p2p payment app as profitable as possible. The features should be unique enough to trigger instant conversions.
At the time of any transaction, the user would receive a one time password. He/she needs to validate the password in order to allow the transaction to happen. Or you can give them a fingerprint system for higher security. As we all know, any digital platform can be hacked. We need to ensure our information are secure and untampered. We’ll be covering the security part under the blockchain section shortly to answer how to create a P2P payment app.
Under the current monetary system, we have to carry a physical wallet wherever we go. The act of carrying it is not much of a burden since we longer have to harbor huge volumes of cash, thanks to ATM card system, but we always have the tendency to misplace it. With the concept of a digital wallet, it’s simply not possible. Even if you lose the phone, you can always access it from other phones or devices. The information is stored in the cloud and you can easily access it as per convenience. You just need to maintain a certain amount in your digital wallet.
Use this facility to notify the user every time a payment is initiated or received. The user would be notified about the activity, as well as any changes made to his/her digital wallet. Also, provide custom alert systems for upcoming bill payment dates. The users would benefit from this as they’ll no longer have to plan things beforehand. It often becomes really hard to plan schedules amid the hectic weekdays. This is where this particular p2p payment feature will come in handy and will answer how to build your P2P payment app.
Under the current system, we check our bank statements to verify transaction records. What if there was an app for that? Indeed, it would be far more convenient to check history without leaving the comfort of our homes. We won’t have to visit the ATMs or bank branches to draw statements. It would reduce both time and money on your user’s end.
Facility To Transfer To And From Their Bank Accounts
Although the intention of this p2p payment idea is to alter the traditional monetary system, still we can always give them the facility to combine the two. You might not realize, but innovating a new idea without hurting the consumer’s belief system is far more productive than that which enforces change onto the public. Let the user base gradually assimilate the idea. It’s new to them after all. This p2p payment feature will enable them to transfer funds to and from their bank accounts, as well as avail the new cloud-based innovation at the same time. In this way, you’d be able to penetrate the market as well as gain a strong consumer base.
A user can have several queries while carrying out a transaction. Even before conducting a simple purchase, the user may want some questions to be answered. To address this, give them a chatbot facility. One that would have all the questions answered instantly. This will increase user satisfaction, and hence bring in higher conversion rates.
Currency Rate Measurement & Conversion Facility
Currency varies across nations and so does currency rates. Plus we also need to convert our money whenever we wish to transact in a foreign land. If you can provide an application facility for this, then people won’t have to rush to currency exchange centers every time they land in some foreign country. Plus they’d be able to view the currency rates against the US dollar without separately searching for it on Google. This will help them to work on their budgets accordingly. It is one of the key features you can include to attract more and more users.
Text Messaging Facility
Suppose you want to send some written message with the fund you’re transferring. It might be a confidential one, but important for the particular transaction. Whatever it is, it’s not possible in our current mode of fund transfer, right? Well, make it happen! Incorporate a p2p payment facility where a user can attach a confidential text message with the fund. This will ensure good communication between the users on both ends.
Now, this is something very new to a layperson reading this blog. But don’t worry. We have it all covered.
Blockchain is basically a decentralized system of data maintenance. What do we mean by “decentralized”? It means that the ledger (where all our transactions are recorded) is no longer centralized with a certain bank/financial institution, but rather stored in millions of servers/devices across the globe. The moment a transaction takes place, it instantly gets encrypted and recorded in a vast network of servers.
Now, this might intimidate you, since you’re new to block-chain. But it has a legit reason behind such a strange arrangement. Suppose a hacker wants to tamper with your records. He/she would have to access it from a specific device right? But the blockchain seals your information in millions of devices overseas.
Any change in the ledger would have to receive validation form every device the records are encrypted in. So, whenever someone would try to hack from a particular device, it would not receive validation from the other devices.
Plus the hacker won’t be able to view any transaction since every data is highly encrypted. This is exactly why blockchain is so recommended in the digital market. It increases the security tenfold, making it impossible for the hacker to view and tamper with the data. The encryption restricts viewership and alterability to the user.
So, How to Build a P2P Payment App? Questions to Answer
Now you’d ask “What if I want to view and add any transaction to my ledger?” You’d be able to do it because you’d have something called a “Private Key” (digital equivalent to your ATM pin). Inserting this private code would allow you to view past the encryption, as well as add a new transaction in the ledger.
So how about someone on the receiving end? He/she won’t be having your private key. This is where public key (equivalent to your account number) comes into play. You can give your code, using which he/she will be able to receive funds, as well as use that as your address when they are sending you a certain sum of money.
It is similar to how the accountant credits salary into your account. Since the hacker won’t be having your private key, so he/she will never be able to unlock the vast network of transaction. It is exclusively limited to you only.
Every transaction in the ledger is encrypted and recorded in nodes or blocks in multiple devices across the globe. Plus the blocks are functioned in a linear way like a chain. Meaning you can only add to your ledger, and not remove any transaction from it. Similar to a bank ledger where every transaction is added one after another. Hence the name ”Blockchain”.
This P2P payment feature would be of utmost importance, given the rising popularity of blockchain.
Cryptocurrency Transaction Facility
Cryptocurrency is trending in the financial market right now. You must have heard of digital currencies like Ether, Bitcoin, etc. They are nothing but digital substitutes of existing currencies in the market. Your user might trade in these and would frequently want to transact using the same. Give them a facility where they can use digital currencies instead of traditional legal tenders. In this way, you can add these users to your consumer base, thus expanding it.
So How Would The Revenue Model Look Like?
Behind every successful app, there’s a good revenue model. After all, it’s the profit that boosts an entrepreneur for further development. A good revenue model ensures a good annual profit and a steady flow of capital. Without this, all ideas, efforts and high-end features would be of no use. The capital structure of any app is crucial in gearing its success. It helps an entrepreneur to steer his/her business in the right direction. So let’s get started:
There are mainly 2 methods from which you can select any one or go for all of them:
A. Premium Service Method
Allow your users to avail the basic features like fund transfers, transaction history, etc. But only allow the premium users to avail high end features like a chatbot, cryptocurrency transactions, text messaging facility, currency rates, and conversion facility, etc.
The basic features would build trust in the free users. Then they will be willing to take the advanced services as well. That is when they’ll register for a premium account, thus generating capital for your app.
B. Affiliate Marketing Method
You can ask banks or financial institutions to display their products on your app page. You have to provide a space for a banner. When the user clicks on it, it will generate revenue. This is called pay per click method. It is a widely used earning technique. You can use it too.
There’s another method called “Advertisement Technique”, but is not a good fit for p2p payment apps. It can repel users since they want instant payment facility without any ad interruption.
What Will Be The Nature Of Your App?
It is important to know the nature of your app before you understand how to build a p2p payment app. Mainly there are 3 kinds of apps: Native, Web and Hybrid.
- Native: These apps are given a native look i.e. they are built for the respective operating system [Android/iOS]. The best example is Facebook. It looks similar on Apple and Android, but if you take a closer look, you’ll find the differences. This is how native apps are exclusive to specific operating systems.
- Web: They are server based apps accessed via the internet across any platform. Example: Chrome. It appears the same across iOS, Android, etc.
- Hybrid: These are basically web apps wrapped in a native design. Example: Gmail. They’re adaptive, but lacks exclusive design for specific operating systems like the Native counterparts.
Yours being a payment app needs to be native by design. Plus native apps are preferred more across the globe. It would be designed in a native structure for both Android or iOS. Users find it more convenient to navigate through a native application than anything else. It offers a better UI/UX.
What Technology Stack Should You Use For Your P2P Payment App?
This term often intimidates laypersons. A picture of complex technical jargons pops up in their head when they hear it for the first time. If you’re among them, don’t worry, it is nothing so complicated.
A tech stack is basically a collective term for the software and programming languages used to construct an app. It is the framework underlying all possible features and functionings you want to incorporate.
Choosing the right stack depends on the app’s nature (native/web/hybrid). Since yours will be a native app, your developer would use the respective tech stack.
For iOS- Swift/Obj C [Language], Apple XCode/Intelli Appcode [Tool]
For Android- Java [language], Android Studio/Eclipse [Tool]
How To Choose The Right Developer For P2P Payment App?
Building a P2P Payment app all by yourself is a tedious task. It requires time and a considerable amount of resources. You have to carry out your product licensing as well. All these are provided by a developer. But how do you choose the right one? Whom to hire? Freelancer or Professional Agency?
While freelancers are enthusiastic individuals keen on serving with passion, they don’t guarantee long term sustenance and professionalism. Freelancers tend to leave in the middle of the development process. Hence they have no sense of professional obligation towards their project.
We’d always advise you to do for professional agencies. They would charge more than freelancers, but it’s worth the investment. They would always have high-end tools and software in their inventory to deliver cutting edge solutions in the market. They’d have many people working in separate teams.
Unlike freelancers, they deliver projects within the stipulated time and budget. Plus, they give at least 3 to 5 years of guarantee. Their methodology incorporates agile techniques aligned with the latest market trends and innovations. Also, they keep a follow-up system for feedback and necessary updates.
Have a P2P payment app idea in mind? Let us know and our experts will solve your queries.