P2P Payment App Importance and Features

Today's technology makes it possible to have multiple payment options and the P2P payment method is the simplest mode of transferring money from one person to another. P2P payment transfers, also known as peer-to-peer or person-to-person payment, are an easy and secure way to pay or transfer money to people. Modern fintech solutions have been the most significant innovations in the banking space in recent years. Open banking, with simple, easy-to-use, convenient P2P payment options, entices more users. In broader terms, it describes a decentralized way in which individuals can interact with each other without a third-party intermediary.

Increasing acceptance of online banking, mobile banking & eCommerce has boosted the P2P payment market. Transferring money from one person to another without waiting for bank settlement has been a significant advantage for P2P payment methods and apps. As per Allied Market Research, the global P2P payment market was valued at USD 1,889.16 billion in 2020 and is expected to reach USD 9,097.06 billion by 2030, at a CAGR growth of 17.3% from 2021 to 2030.

Some popular P2P payment apps

Wise - An online and mobile payment app that can be used domestically and internationally. It allows payments to be transferred in around 80+ countries using a range of currencies. Funds are deposited into the recipient's bank account directly, and the recipient does not need a Wise account. The only requirement to get started is an email address.

Venmo - Is one of the most popular P2P services in the US. It's fast and lets people send messages and emojis when making payments. It also allows payments to businesses. Prices must be made in USD and cannot be made outside of the USA.

Features of a P2P payment app

• Login/registration - It is essential to have a registration and a login feature in the app to identify which user is making the request. Based on user identification, notifications, balances, debits, and much more can be displayed for that user. It also ensures that the user's data remains secure. Login can be done via a unique email, One Time Password (OTP) or Personal Identification Number (PIN).
• Notifications - Notifications notify or inform the user about payment initiation, deduction, receipts, payment due dates, and much more. Notifications are also used to notify the user of any activity in the app based on user login.
• Security - Payment apps are prone to hacks and other risks, and the legitimate user must use the app. There are many security features like 2-factor authentication (2FA), PIN, fingerprint and even face id to process any transaction.
• Transaction history - The transaction history feature ensures the user can check past transactions without keeping track separately.
• Bank transfers - P2P apps should have the functionality to transfer funds to their bank(s) or card using the peer-to-peer payment feature.
• Chat - An in-app chat feature is a handy functionality for a P2P app. It allows the payer and recipient to instantly connect and confirm payment receipts without leaving the app and using another app.
• Bills/invoices - The functionality to scan bills or invoices and send the same using the phone camera or any other scanning app is a very feature for a P2P app.
• Request payment - The app can have a feature that allows users to send a payment request to other users with the requisite details.
• Digital wallet - A digital wallet allows users to store money and credit & debit card details within the app. It allows users to pay directly from the app wallet balance or credit or debit card without transferring funds from the bank. It helps increase the functionality of the app.
• Chatbots - Chatbots save time and help reduce the workload of basic queries from the client-facing staff. Chatbots can help users by answering basic questions like checking bank balances, transaction details and more.

Different types of P2P apps

• Standalone financial applications include individual financial service providers with linked payment gateways. These apps offer wallet services where money, card, or bank details are stored in app wallets. PayPal, Western Union, and Alipay are examples of standalone financial apps.
• Bank applications - Apps developed by banks and dedicated or can be used with linked bank accounts only.
• Social media payment apps - Some social media platforms allow payments to be transferred from within their apps. Examples are Whatsapp, Facebook, Snapchat, Kik etc.
• Apps tied to the mobile ecosystem - Payment apps like Google Pay, Apple Pay, and Samsung Pay are some of the well-known players in this slot. Big corporations like Google, Apple, and Samsung have integrated these services into their devices, services and software and are one of the most used and popular forms of P2P payment portals.

In conclusion, P2P payments will continue to grow in popularity because of their convenience, speed and security. These are some of the main features that users have come to like and big companies. It enables banks to respond to the needs of modern users. Connecting with an online payment transfer app development company can translate an idea of a P2P payment application into a reality.