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Hands-On Guide For Legal-Complaint Peer-to-Peer Payment App That Pays Off

Maryna Cherednychenko - February 27, 2020 - 0 comments

P2P payments are no novelty now. If you go to the mobile market, you will find dozens of such apps. On the one hand, it reflects high competition, on the other – a keen interest of clients. As you know, demand generates supply. So, if you look for a sought-after area to set up a business, do not pass by. High-quality goods always find their customers and crowd out opponents. In this guide, we will tell you how to make a P2P app that generates profit.

What Is a P2P App?

Let’s start from the very beginning and clarify that P2P stands for person to person. So, when we talk about the P2P app, we mean a service that allows people to transfer money to each other. It’s that simple – choose recipient, enter the amount to transfer, press “Send.” The whole operation takes no more than a few seconds.

Note that P2P apps are not limited to remittance between individuals. They allow pay bills, subscribe to regular services, make purchases. All this saves time and effort, so people gladly use P2P apps.

Why Build a P2P App?

This section should have some impressive statistics. Well, I will not be original and give you some numbers. According to Statista, P2P payments gather like a snowball. The total transaction value in the digital remittances segment amounts to US$95,959 million in 2020. The number of users is expected to reach 13.2 million by 2023.

Peer to peer apps users

Digital remittance users worldwide


As reported by the Bank of America, most users make P2P payments at least monthly, while almost half of Gen Z users do it daily. 81% are comfortable gifting money via P2P. Such transfers include birthday, graduation, holiday, and other gifts.

How peer to peer payment is used

Purpose of using P2P app transfers


58% of respondents think that cash payments will disappear within their lifetime, 11% expect it to happen within a year. Also, more and more users prefer electronic mobile payment over web sites since they can perform money operations on the go.

As you can see, you have plenty of potential clients. So, go ahead and choose your growth path.

What Can a P2P App Do?

P2P apps are not just about sending and receiving money. They have plenty of cool features that make life easier. Let’s see what users of P2P apps can do.

  • buy on the installment plan
  • pay cab fare
  • borrow and lend
  • split a bill
  • send money as a gift
  • send money to a different country
  • pay house bills
  • exchange currency
  • donate

Types Of P2P Apps

P2P apps vary by nature, field of use, geography, and business model. Before you start an in-depth study of how to create an e-wallet, choose your category.

P2P apps by nature:

  • Airtime top-ups when sender credits money to recipient’s mobile phone account
  • Regular money transfers to credit/debit card or bank balance
  • Online payments for goods and services
  • Coupons and discounts on purchases in online and offline stores

P2P apps by a field of use:

  • Retail: buy, track orders, request a refund
  • Travels: book tickets, rent apartments, hire a guide
  • Logistics: order delivery, track package, pay online
  • Utilities: pay bills, get receipts, get payment reminders

P2P apps by geography:

  • Domestic: transfers within a country
  • International: cross border remittance

P2P Apps By Business Model

I decided to place the business model in a separate section since this part is crucial for making a business decision. So, take a look and consider what is better for you.

Bank-focused apps. In such apps, the bank participates in the transaction, although it is not necessarily the app owner. Most often, the app simplifies the transfer of funds through a partner bank or credit union.

Examples: Dwolla, Zelle, PopMoney.

Independent services. The apps offer an autonomous mechanism to handle digital remittance. Usually, they have a built-in virtual wallet that accumulates the user’s money before sending it to the second side.

Examples: PayPal, Venmo, Square Cash.

Social platforms. Most often, people send money to friends and relatives. So why not do it right in a chat? Messaging apps allow instant P2P money transfer with frictionless authorization. The recipient can confirm the pay entry right away.

Examples: Facebook Messenger, Snapchat, Kik.

Mobile OS services. Such peer-to-peer apps are more like embedded OS features than standalone tools. They support remittances within their environment. Such a model is best suited for developed countries with an extensive payment base.

Examples: Apple Pay, Android Pay, Samsung Pay.

Where To Begin P2P App Development?

We advise our clients to start with a minimum viable product when working on a new project. With MVP, you can launch a basic app and complete it after receiving user feedback. Let’s see how to set up cash app essentials.


Send and request money. The option is pretty much self-explanatory. The users should be able to send and receive money in a fast and straightforward manner.

Bills and invoices. Enable your app to scan bills using the device camera. Also, provide an opportunity to submit invoices and send papers via the app.

Digital wallet. Set up storage for user cards, discounts, tickets, and in-app funds. Remember to give clear tips on how to make e-wallet arrangements.

Unique identifier. Users enter ID or a one-time password every time they approve a transaction. Modern devices support biometric authorization. So, you can add an extra layer of protection, like fingerprint check or face recognition.

Replenish bank account. Add the ability to credit a bank account via the P2P app.

Payment history. Provide users with fast access to the latest transactions. Also, allow viewing payment history for an extended period.

Chat. The social background adds fun to the process of money-sharing. Also, it helps users clarify some details right off the bat and avoid many mistakes.

How to create e wallet

P2P app basic features

Extra Features

Chatbots. Clients may face some problems, especially when using the app for the first time. Well-educated bots will answer the arisen questions and contribute to a positive user experience.  

Currency exchange. Let users convert money at a favorable rate without involving a bank. Here, the P2P payment app acts as a middle man between the seller and buyer of a currency.

Cryptocurrency. The option arranges peer to peer money transfer worldwide. Payments go in cryptocurrency. Afterward, users can change it for the currency of any country.


Lock features. I have already mentioned biometrics, unique ID, and OTP. Add also CVV entry and two-factor authorization here. Make a smart combination of available options. For example, you can ask to use Touch ID to confirm payment; if it does not work – request a CVV code. Care about the comfort of a client. If the user forgets the password, do not block them permanently. Suggest an alternative login.

Instant notifications. Implement push notifications to keep users up to date about the app activity, for example, when payment is sent or received. Use more sources to alert the client if a suspicious operation or login is detected. You can send an email, SMS, or even give a call.

Customer support. It is impossible to foresee all situations, so make sure that the user can quickly contact support and solve their problem. Hire human consultants to solve non-trivial issues.

Blockchain. If you choose to build a blockchain-based P2P app, you go to the next security level. Due to the specific nature of blockchain technology, it is almost impossible to hack data. To change the information in the block, you have to edit all subsequent blocks. Since they are stored on many different computers, it is hardly possible.

Secure peer to peer payment

P2P app security

Legal Compliance

The law strictly regulates financial activities. Peer to peer payment apps is no exception. Legal compliance differs depending on the region, so make sure to study it thoroughly before release.

If you work in the EU, first of all, pay attention to the PSD2 regulation. Payment Service Directive is a legal statement issued by the European Commission. It sets new rules for financial market participants. Among other things, it removes the monopoly of banks to user data and provides fintech firms with access to open banking API.

In the USA, things are a bit complicated. There is no specific fintech regulating authority. Depending on the scope of activity, the fintech company should apply for a license both on federal and state levels.

In Asia, you should study the laws of a particular country. For example, the People’s Bank of China regulates fintech in the Chinese market, the Financial Services Commission – in Korea. For a complete list of Asia fintech regulations, please, check this guide.

Finally, if you target the Australian region, prepare to meet the criteria of the Innovation Hub.


Now, we are getting to the good part. Let’s see how you can raise money with your peer to peer payment app.

Transaction fee. Similar to banks, you can charge a commission for peer to peer cash transfer. Don’t forget that your price should be much less than the one offered by a bank. Otherwise, the users will have no reason to use your app.

Ads. This way of earning is suitable for strong brands with a large customer base. You can use it as additional sources of revenue or the main one.

Paid subscription. Provide basic options for free but set apart a tasty morsel. Polish your essential features so that the user wants to pay to get more.

How to set up cash app monetization

How to monetize P2P app

Let’s Collaborate!

Fintech is an up-and-coming area that gives many chances for a profitable business. Given that digital transfers freeze out cash assets making a P2P app seems to be a perfect idea. Customers are ready to pay for quality services that save time and effort. If you want to make one, drop us a line. We know how to do it!

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