Peer-to-peer payment system helps a person to transfer funds from their bank account to another person’s bank account with the help of an application called peer-to-peer applications.
P2P payment App has gained immense popularity among the youth who generally shows more trust in sharing their financial data with the third-party software as compared to the older generation system.
Remember those days when people carry money in pocket to pay for the bills or used to go to the bank or ATM to transfer and withdraw the money. Using online money transferring apps, users can make a payment or transfer money very easily.
This article covers all necessary things like security issues, legal compliance, and features to take into account if you want to build a P2P payment app. Many mobile payments apps are available on play store, Venmo or Square cash are leading money transfer app in this industry.
What is Venmo
Venmo was founded in 2009 and In 2012, the company was acquired by Braintree for $26.2 million. Later, PayPal acquired Braintree for $800 million in 2013.
Venmo name is the combination of two Latin words:
‘Vendere’ which means to sell and ‘Mo’ is the abbreviation of mobile
Venmo is one of the leading mobile payments apps, it allows users to send and receive money with their friends and family. Users can pay their bills via Venmo app. There are no charges for signing up, if you are using a credit card for making payments then Venmo charges 3%fee per transaction.
What is square cash
Same as Venmo, Square Cash is also a leading P2P payment application.
Jim Mckelvey and Jack Dorsey launched Square, Inc, merchant service and mobile payment platform in 2009. More than 30 millions of businesses use this technology to facilitate credit card payments and track sales. In 2017, the company’s square cash app began allowing merchants to use bitcoin in this technology.
It allows users to transfer money to other users instantly. It does not charge for sending money. However, it charges a 2.75% fee for each transaction made via a business account.
Difference between Venmo and Square cash
Venmo provides a toll-free number for its users. If users have any query then they can contact the customer care executive. Customer care services are available on weekdays from 9AM – 5AM. They also provide chat services or users can connect via email for help.
Square Cash does not have any toll free number or chat option. If users have any queries, then they can contact via email only.
Venmo doesn’t offer an instant transfer facility. It generally takes one business day, it could be longer or shorter.
Square cash provides multiple transfer modes. Users can transfer funds instantly, for this, users have to pay a 1% fee of the total amount.
Sending and receiving limits
Venmo transactions are free if you use your linked debit card, linked bank account, or current Venmo balance. You’re limited to $299.99 per week unless you verify your identity by linking your Facebook account or adding your ZIP code, last four digits of your security number, birthdate, which ups your limit to $2,999.99.
In square cash, you have a $250 weekly money sending limit and a $1,000 receiving limit per 30 days. If you attempt to send more than $250 in one week or receive more than $1,000 within 30 days, you’ll be asked to verify your identity with name, date of birth, and the last four digits of your security number. Once you’re verified, free transactions are then limited to $2,500 a week and there are no limits on how much money you can receive. Fund transferred or received by using the cash for business accounts are exempted.
Fraud protection and safety
Both Venmo and Square cash uses data encryption to protect their user’s data.
How to build an app like Venmo or Square cash
Target a smaller regional market, it allows you to find the optimal product and help to analyze how the users respond to your product or services.
Here is an important point to notice that not all the successful P2P money transfer apps are global. Some of them are regionals.
Security is a must for every application. When it’s about money, it becomes a serious issue. You have to take care that your application should be secure because users won’t compromise when it comes to security.
For this, you can get certified as per the requirement of the payment card industry. It will assure your customers that your services are secured.
Go with third-party APIs
Third-party APIs enable startups to add features that would be extremely difficult for them to build on their own due to resource constraints. It gives a good platform to your users because they are experts in their own field.
It doesn’t make sense to invest a lot of money into developing various features when you aren’t sure if your final product will be successful or not. Third-party APIs comes here to the rescue.
Exploring revenue sources
It is important to find the monetization model for your application.it is essential to explore and accept revenues from several other sources like advertisements.
Customer trust is a must
It is a vital element of business operations that can impact your bottom line and affect how your application is viewed in the public eye. You should provide customer support to your users. In case they have any query then they can directly contact your customer care executive.
How much does it Cost to make a money transfer app
The cost to develop a P2P payment app depends upon what features you would like to add in your application. If you have features like fingerprint unlock and virtual card payment option, it would cost you around $20K – $100K.