How to Build a P2P Payment App: Advantages, Features, Cost

P2P payment apps are steadily gaining momentum worldwide with each passing year. In 2021, both consumers and businesses facilitated the transfer of nearly half a trillion dollars through Zelle. This notable achievement marked a 59% increase in sent payment values and a 49% surge in transaction volumes. Prior to embarking on the development of a payment app, it is imperative to select the most suitable platform type for your needs.

In today's digital age, it has become increasingly challenging for individuals to envision a life devoid of the ability to seamlessly transfer money from one card to another or make online purchases with a few simple clicks. Innovations such as PayPal and Venmo have rapidly become an integral part of users' lives by effectively catering to their financial needs.

Furthermore, it's crucial to recognize that P2P payment apps exert a substantial influence on the fintech landscape, a topic we will delve into extensively.

For those contemplating the creation of a money transfer app, this article will elucidate the key features of P2P payment solutions and elucidate the various stages inherent in the P2P payment app development process. Additionally, we will provide insights into the resources financial and temporal - required to develop a customized peer-to-peer payment app.

What is a P2P Payment App?

Let's begin by understanding the technical aspects of peer-to-peer payments. Peer-to-peer transactions involve electronic money transfers conducted directly from one account to another via a payment application. Many of us have likely used PayPal, one of the earliest and most popular P2P payment apps. But how does it work?

Here's a breakdown: You create an account and link it to your credit card or bank account. Then, using the recipient's email address, phone number, or account details, you can send money to them. Typically, the legitimacy of a transaction is verified through passwords or additional information about the sender and recipient. P2P systems enable fund transfers between owners of different bank cards, eliminating the need for intermediaries and reducing associated fees. While these apps are often free, minor charges may apply depending on the source of your funds.

To conduct these transactions, users require an app accessible via smartphones or computers and an internet connection. There's no need to deal with cash or wait in long bank lines. It's an incredibly straightforward process.

These apps generally facilitate money transfers between users of various banks, ensuring convenience. Transaction processing times can range from a few minutes to several hours, depending on the type of payment. P2P systems serve a wide range of purposes, including payment for services, online purchases, sending and receiving loan requests, conducting cross-border transactions, and more.



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How Does P2P Payment App Work

How do you set up a P2P payment account? It is a straightforward process, regardless of the platform you choose. Here's a step-by-step guide to how it works:

1. Registration and Login:

Begin by creating an account on the app, and providing your contact information, such as your name, bank name, phone number, address, and city.

Set up a secure password or PIN for your account.

2. Adding a Payee:

After registration, you'll need to complete the Know Your Customer (KYC) process.

Add the recipient's information, including their name, to your account.

3. Defining the Amount:

Specify the amount you wish to transfer, and you can also include a payment description if needed (optional).

4. Password Confirmation:

Enter the password you created during registration to authenticate the transaction.

Alternatively, you may receive a one-time password (OTP) for transaction verification.

Some apps also provide security questions for authentication in case you forget your password.

5. Receipt of Payment:

Once the transaction is confirmed, a payment receipt is generated instantly.

You can download or print this receipt for your records, allowing you to keep track of your financial transactions.

Types of Peer-to-Peer Payment Systems

There are several types of peer-to-peer payment systems, each with its own characteristics and features:

1. Discrete Services:

These are standalone P2P payment apps with wallet functionality for secure money storage.

Examples include Venmo and PayPal, which have extensive user networks and support transactions in many countries.

2. Banking Services:

Bank-centric P2P payment apps may involve a bank as one of the transaction parties.

Some banks have their own smartphone apps for P2P transactions, while others use various financial institutions and credit unions for transfers.

Zelle is an example of a bank-developed P2P payment system.

3. Social Platforms:

Social media platforms, like Facebook and Snapchat, have integrated P2P payment features.

Facebook Pay, for instance, enables users to transfer funds through Messenger.

4. Mobile OS Systems:

Mobile operating systems, such as Android and iOS, have incorporated P2P payment capabilities. Users can conduct various banking transactions and pay bills through their mobile devices. These systems often provide real-time monitoring of cyber threats and fraud prevention. Each type of P2P payment system has its advantages and use cases, catering to a wide range of user preferences and needs.

How Does Peer-to-Peer Payments Affect Business?

Let's explore how P2P payment apps impact various businesses and their operations:

1. Startups:

Entrepreneurs who aim to develop P2P payment apps from the ground up perceive an opportunity to offer unique solutions and revolutionize the market.

These startups seek to outshine future competitors by introducing innovative features and services.

2. Owners of Financial Software:

Businesses already involved in financial software may choose to incorporate P2P payment services into their existing solutions.

Some opt for ready-made P2P payment solutions like Zelle, while others integrate additional payment methods like Google Pay or Apple Pay to enhance competitiveness.

3. Creators of Social Media Platforms:

Social media platform developers recognize the trend set by competitors such as Facebook, Messenger, Instagram, WhatsApp, which have introduced features like money transfers and real-time payments.

To stay competitive, these creators integrate similar solutions into their products to retain users and cater to evolving needs.

Impact on Payments:

  • P2P payment apps have witnessed significant growth in transaction volumes and payment volumes. For example, Venmo experienced a remarkable 57% year-on-year growth in total payment volume during the second quarter of 2021.
  • Ensuring that P2P payment apps can efficiently handle increased payments and active users becomes crucial for businesses in this sector.
  • Expansion into new regions of the world presents an opportunity for further growth.

Business Growth:

  • The global number of smartphone users exceeds 6 billion and is projected to increase by several hundred million in the coming years.
  • Key regions with a high number of smartphone users include China, India, and the United States.
  • Businesses seeking rapid growth in the P2P Payments market should consider these regions as potential target audiences.

The P2P payment market presents various avenues for influencing and benefiting different types of businesses. It offers opportunities for startups to innovate, enables existing financial software providers to diversify their offerings, and encourages social media platforms to remain competitive by adapting to evolving trends. Additionally, the global smartphone user base growth further fuels the potential for business expansion in this sector.

List of Must-have Features For Creating a P2P Payment App

1. Digital Wallet (E-Wallet): Users should be able to store their bank cards and funds securely in a digital wallet within the app.

2. Transfer to a Bank Account: Enable users to transfer funds not only from card to card but also to bank accounts securely.

3. Real-Time Payments: Facilitate quick and easy payments for everyday purchases, bills, and online transactions, emphasizing simplicity and speed.

4. Transaction History: Provide users with a clear and easily accessible transaction history to help them find specific payments and keep track of their financial activities.

5. Send Bills and Invoices: Allow users to generate bills and invoices within the app, catering to both personal and business use cases.

6. Unique User ID/OTP: Enhance security with features like One-Time Password (OTP) authentication and biometric options like fingerprint recognition for app access and transactions.

7. Currency Conversion: Enable users to perform currency conversion within the app for seamless international transactions and exchange between different currency cards.

8. Push Notifications: Implement push notifications to keep users informed about incoming payments, invoices, and other important updates.

9. Customer Support and Chatbots: Offer customer support channels within the app to assist users with inquiries, transaction statuses, and issues, including the use of chatbots for quick responses.

10. Cryptocurrency Payments: Stay up-to-date with the growing popularity of cryptocurrencies by allowing users to make payments using digital currencies.

11. Admin Panel: Develop an admin panel for managing the app, including adding or removing features, monitoring transactions, and addressing any app-related issues.

These features constitute the foundation of a P2P payment app, ensuring security, convenience, and functionality for both users and businesses.

How Much Does it Cost to Create a P2P Payment App?

The cost breakdown for creating a custom p2p payment app is as follows:

Estimation & Research:

Time: Approximately 160 hours

Cost: Approximately $7,000

Description: During this phase, your project details are gathered, and market research is conducted to identify your competitive advantage. Feedback and discussions are held to refine the project scope.


Time: Approximately 350 hours

Cost: Approximately $15,000

Description: This phase involves designing the app's interface, creating prototypes, developing the back end (including security and compliance measures), and implementing the front end to create the final visual version of the app.

Testing & Launch:

Time: Approximately 120 hours

Cost: Approximately $5,000

Description: Testing is conducted to identify and rectify any errors or bugs in the app. Once testing is complete, the app is prepared for launch, and assistance is provided to bring the app to market.


Time: Guaranteed support period of 320 hours (40 days)

Cost: Approximately $13,000

Description: Ongoing support is available for your app, including updates and maintenance as needed.

It's important to note that these cost and time estimates are approximate and can vary based on specific project requirements, additional features, the geographic location of the development team, and other factors. Customization and unique project goals may also influence the final costs.

How Stfalcon Can Assist You in Building a P2P Payment App

P2P payment applications continue to gain substantial traction in the market with each passing year. Now is an opportune moment to secure your slice of this growing industry. You have a comprehensive understanding of the essential features, key challenges, and the approximate time and cost involved in developing such a solution. With this knowledge in hand, you are prepared to transition from planning to implementation.

At Stfalcon, we specialize in crafting P2P payment solutions tailored to diverse industries. Our team of developers boasts extensive experience, having successfully delivered projects.

Partner with Stfalcon, and let us help you bring your P2P payment app vision to life. Your goals are within reach, and we are here to make them a reality.

Our Experience

SDK for a crypto wallet was entrusted with the mission of developing an SDK for Android and iOS mobile platforms, leveraging Kotlin Multiplatform, for a cryptocurrency wallet. One of the primary objectives was to amalgamate business logic and employ a uniform codebase across diverse platforms.

To accomplish this, we harnessed the capabilities of Kotlin Multiplatform technology. This innovative approach enabled us to employ identical business models, workflows, queries, internal data processing, and encryption across all designated platforms.

Read the full case study

Credit Agricole

Our team was tasked with the responsibility of crafting an interface design for Credit Agricole's payment kiosks.

The principal objective of these kiosks is to alleviate queues in the bank offices and reduce the workload on cashiers. Hence, it was imperative that the kiosk interface be exceptionally user-friendly, catering to even the least tech-savvy users.

Read the full case study

Bottom Line

Now that you have a clear understanding of the P2P payment app features and benefits for business, it's essential to embark on meticulous research and decision-making. Begin by delving into user research and outlining your app's functionality. Your primary goal at this stage is to provide a comprehensive description of your idea, which can then be refined and executed with the assistance of a proficient development team.

Selecting the right development team is paramount, as the quality of your application hinges on their expertise. Take your time in making this crucial decision and opt for a team with a proven track record in developing fintech solutions.

Industry experts are anticipating a bright future for peer-to-peer payment apps, and the time is ripe to seize this opportunity. Our dedicated team is readily available to offer guidance on the technical implementation of your concept. Feel free to contact us, and we wish you the best of luck with your project!