How to Build a P2P Payment App in 2022: Moving Toward a Cashless Future

What is a P2P payment app?

  • Pay for services (like a taxi or the Internet)
  • Donate to organizations
  • Support your loved ones
  • Send and receive friend-to-friend borrowing requests
  • Send money to family members in other countries

Types of P2P payment apps

  • Standalone services: These apps have an all-in-one structure for fund transfers.
  • Bank-centric apps: These apps use banks as an intermediary for funding transfers. With these apps, users complete transactions using their credit/debit cards.
  • Social media-centric apps: These apps allow users to send money using their social media accounts. Just imagine how convenient it could be when you’re chatting with a friend if you could send them money without even leaving the chat itself. In addition, this type of app doesn’t require any additional authentication to complete the transaction.
  • Mobile OS-centric services: These apps enable users to send money to other users within an operating system. Users can also pay at stores where Point of Sale (PoS) equipment features NFC (near-field communication) technology.

Advantages of payment P2P app development

  • Speed: No waiting in line.
  • Transparency: For currency exchange, users can often find a reasonable rate which is determined by overall demand, not by any government organizations or banks.
  • Security: Developers must be compliant with a strict policy that ensures personal financial information is securely stored and never leaked.
  • Ease of use: After downloading an app, all the features are just a few steps away.
  • Organic growth
  • Retention
  • The rise of digital remittances

Payment applications market overview

  1. It is growing faster than FinTech companies. P2P mobile payment transaction volume reached $785.19 billion in 2021. When Revolut was launched in 2015, it was just another P2P platform and PayPal already existed, but it currently has over a million monthly active users and is available in more than 10 EU countries.
  2. It has a predicted CAGR of 5.7% from 2021 to 2030.

Let’s look at the world’s most popular P2P payment apps

Source: Zelle
Source: PayPal
Source: Apple Pay Cash

Tech stack, requirements, and team

  • UI/UX designers are responsible for making the user experience simple and enjoyable.
  • Business analysts conduct market research.
  • Front-end engineers write the code for the platform you’ve chosen.
  • Back-end engineers are responsible for server-side web application logic and integration of the work front-end engineers do.
  • QA specialists search for bugs.
  • Project managers organize the work of the other team members and make sure everything goes according to plan.
  • For iOS: Swift/Objective-C, Apple XCode/Intellij AppCode
  • For Android: Java, Android Studio/Eclipse
  • Admin panel: JavaScript, Laravel Nova
  • Payment gateway: Stripe, PayPal, Braintree, Mastercard, and other options
  • Geolocation: Google Maps API
  • Utilities: Firebase, Twilio, Facebook SDK, and Google SDK
  • Notifications: Chrome notifications, Rest APIs, Amazon SNS, APNS, and Firebase cloud messaging.
  • Unique ID and OTP verification: Bamboo invoice, Rest APIs
  • Digital wallet: Rest APIs
  • Sending bills and invoices: 3rd party SDKs like Firebase, Twilio, Nexmo, Digimiles
  • Sending and receiving money: Dwolla, ACH
  • Biometric authentication: Optical fingerprint, Capacitive sensors

How to create an online payment app: main steps

1. Market and User Research

  • Who is your target consumer?
  • What are their pains?
  • How can your app solve them?

2. Software Specifications

3. Design

4. Development

  • User authorization
  • Unique ID/OTP (“one-time password”)
  • Bill payments and money transfers
  • Account linking
  • Invoice building
  • Bill scanning
  • Transaction history and payment statistics
  • Notifications
  • Mobile chat
  • Customer Support

5. Testing

6. Security issues and compliance with regulations

  • The UK — Financial Conduct Authority
  • US — Depends on the state
  • European Union — Directive (EU) 2015/2366 + GDPR compliance
  • Australia — Innovation Hub by the Australian Securities and Investments Commission (ASIC)

7. Launch

P2P payment app development cost

  • Research — 150 (North America — $1,500; Western Europe — $800; Asia — $600; Latin America — $750)
  • Development — 350 (North America — $35,000; Western Europe — $17,500; Asia — $12,250; Latin America — $7,000)
  • Testing & Launch — 120 (North America — $3,600; Western Europe — $1,800; Asia — $1,200; Latin America — $1,600)
  • Support — 300 (North America — $6,000; Western Europe — $3,000; Asia — $2,300; Latin America — $2,600)

Monetization strategies for P2P payment apps

  • Transaction fees: You take a percentage from every transfer made in your system. Users don’t like this model very much.
  • Ads: You place an ad holder in your UI and charge advertisers for each show or click.
  • Freemium: The core functionality is available to all users but some premium features are only in the paid plans. This model is especially good because it can also incorporate elements of the other two above.

Pitfalls and challenges

Safety and Security

  • Securely store personal information
  • Have strong access control standards
  • Continuously update its security policies
  • Regularly test and monitor networks

Compliance with regulations

Currency conversion

Dispute management

The bottom line



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A team of engineers writing about web & mobile applications, here’s how we think ( and live (