What is a peer-to-peer payment app?
A peer-to-peer payment app is a web or mobile application that enables users to send and receive payments via the Internet. Typically, this type of application requires users to register for an account and link their bank accounts into the app. After registration, users can send money directly from their checking or savings accounts to other users’ accounts.
peer-to-peer payment apps are similar to other money management apps like savings apps, investment apps, and budgeting apps. Venmo is the most popular P2P payment app, with over 150 million users.
Examples of peer-to-peer payment apps built with Crowdbotics:
- Venmo but for Crypto. Peer 2 peer payment transfers using crypto would be based on the blockchain. Would have an escrow account on theBlockchain to buy and sell.
What is the typical cost to build a peer-to-peer payment app?
A peer-to-peer payment app usually costs about $75,000 to build. However, the total cost can be as low as $50,000 or as high as $100,000. A peer-to-peer payment app with a low number of features (also known as a minimum viable product, or MVP) will be more affordable than an app that includes all intended functionality.
For example, here are some previous peer-to-peer payment app price quotes from Crowdbotics:
How long does it take to build a peer-to-peer payment app?
A peer-to-peer payment app usually takes 1000 hours to build. However, a peer-to-peer payment app can be built in as few as 667 hours, or in as many as 1333 hours. The exact timeline mostly depends on how complicated your specific app is. As a general rule, it will take longer if you require highly custom designs, niche features, complex logic, or non-standard release platforms.
For example, some previous peer-to-peer payment apps build with Crowdbotics received the following hourly estimates:
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Crowdbotics has quoted and built hundreds of applications for teams of all sizes. Browse our historical estimates by industry and app type to understand possible costs and considerations.
How to successfully grow your peer-to-peer payment application
A peer-to-peer payment app can grow by targeting a specific niche audience and establishing itself as the top choice for that type of user. Zelle, a personal payment app from Bank of America, targets people who want to send money to family members without going through a bank. When creating an app like Zelle, it’s important to offer features that are not available on other similar apps. For example, Zelle offers an artificial intelligence-powered fraud detection system in order to reduce the risk of sending money to someone who has stolen another user’s identity. Peer-to-peer payment apps should also be mindful of local regulations regarding financial transactions and be prepared to comply with those regulations.
Risks and challenges of building a peer-to-peer payment application
A peer-to-peer payment app may face risks related to inadequate fraud prevention measures, payment processing fees, regulatory compliance issues, and the storage of sensitive user data. Peer-to-peer payment apps should have robust error handling logic in place to prevent payments from being initiated if a transaction fails for any reason. Additionally, peer-to-peer payment apps often require bank or other financial institution accounts which can be difficult to set up. You will want to consult with your bank or credit union regarding their requirements for opening such an account before starting development on your app.
