How To Develop A Peer-to-peer Payment App like Cash App?
From banking to sending and receiving money locally, many Financial services are accessible right from a smartphone. The sole reason behind this revolution is none other than mobile application development. There are apps available to apply and receive loans online, pay your credit card, electricity, and other utility bills, and even trade online.
Since the COVID-19, FinTech has bloomed like a flower. Entrepreneurs in the finance sector weigh providing their services through mobile apps. It automates the process, uplifting customer satisfaction. As far as peer-to-peer payment app development is concerned, it empowers entrepreneurs to offer money transfer services regardless of boundaries. And, increasing mobile device users and mobile service preferences give the reason to expand such services.
A survey conducted by Plaid and The Harris Poll concludes that: 59% of Americans are using fintech apps to manage money than they were before COVID-19, and 73% say FinTech is the new normal. FinTech users also said such apps save them time (57%), money (42%), and mitigate the hassle or fear of managing their money (37%).
Major financial institutions have perceived the power of merging technology with their services. Ultimately, financial organizations are investing heavily in technology-driven solutions. This revolution not only replaces the traditional way to offer and consume financial services. It also allows FinTech entrepreneurs to compete with their orthodox counterparts.
If you are more into mobile payment apps like Venmo, PayPal, or Square’s Cash App, we have good news for you. Quarter by quarter, mobile payment users are increasing, whether it’s merchant purchases or peer-to-peer payments. It goes without saying that Digital Payment is the most used FinTech service. Young generations actively use money transfer apps for many purposes.
The real-time transaction value of digital payment was amounted to $5.44 trillion in 2020 and is projected to make it to $11.29 trillion by 2026—Digital Payments Market Report 2021:ResearchAndMarkets.com.
Even with offering online transactions to customers for free, digital payment service providers earn billions. FinTech apps with payment features earn through commission on bills payments, service fees, and other value-added services.
Square’s Cash App Statistic and features inspiring others to make an app like Cash Application
- The app has crossed 100 million downloads,
- There are around 36 million active users monthly using Cash App for their regular transactions,
- The Cash app could produce over $5.9 Billion in revenue in 2020,
- From the total revenue, the Cash app has made a profit of about $1230 million in 2020,
- Over seven million users of the app use the unique service offered by the app, which is— the Cash card to draw money from the Cash App balance and leverage discount deals,
- Square’s Cash App is currently available in the US and the UK,
- The app also allows to buy, sell, store, and withdraw BITCOIN,
- Users can also buy and sell stocks commission-free.
- Users can also get their paycheck up to two days early using the same bank account to pay bills using the Cash app balance.
Wow! Bitcoin, stock, and whatnot. But how does the Cash App work?
- First, you need to register and create a user account on the app.
- The next thing you want to do is link your existing bank account debit card to the Cash App. If your account is connected, you can add your funds to your Cash App account to carry out any transactions.
- Now you can send or receive money from other Cash App users by entering their email address, phone number, or “$Cashtag” (user ID).
- Enter the amount you want to pay or request and tap.
- Hit the “activity button” to check transaction details and “my cash” to see money deposited into your Cash App account.
You can also fill a form and get your paycheck deposited into your Cash App Account.
If we talk about what makes it different from others, it is the Cash Card that can be used at brick-and-mortar retail locations to ATMs to withdraw cash. Plus, it doesn’t apply any fee on peer-to-peer transactions and offers a referral bonus to invite others to join the app.
Business models for Cash App like P2P payment app development
While you start a digital business, you need to draft a business model. The business model keeps you on track throughout your app development journey. It includes market research, demand for your solution, value proposition, revenue streams to adopt, and more. Since you define users’ pain points, creating a user journey and project requirements becomes easier.
Speaking of different types of the business model for P2P payment, you can consider the following models:
Standalone Financial Services
PayPal, Square Cash App, Alipay, Venmo, and many more apps are established on this business model. Such apps empower users to carry out P2P/C2B transactions with or without terminating accounts and debit/credit cards.
Mobile OS Functions
Major brands like Apple Pay, Android Pay, and Samsung Pay employ this type of business model. It permits money transfer inside the brand’s own product ecosystem. The model also includes device-based thumbprint authentication and card tokenization for enhanced protection and comfort of use.
Zelle, Dwolla, clearXchange, and many other apps are based on this model. This kind of app deals with users’ bank accounts directly. It collects from and deposits the amount into a bank account instantly instead of depositing it in a currency account.
Whatsapp, Facebook, Snapchat, and WeChat allow users to send and receive money like Venmo and Square Cash App. You can also create one and allow its integration into social media platforms.
Features to develop a peer-to-peer payment app
After finalizing what type of app you want to develop, you need to outline the features to accomplish the user journey. Further, this summarized feature list helps you in your mobile app designing process as well. Some of the essential components to develop a Peer-to-peer payment app are as follows.
- Registration and login
- Link to a bank account
- FaceID or TouchID to Secure each transaction
- Virtual visa debit card
- Digital Wallet
- Unique ID
- Sending and receiving money
- Sending bills and invoices
- Buy & sell bitcoin
- Check cash balance
- OTP verification
- Instant notifications on the registered mobile
- QR code scanner
- Payment initialization
- Transaction history
How many features to add to your app is up to your business model and budget. That brings us to the next topic.
How much does it cost to develop an app like Cash App?
We are quite an experienced development team in providing FinTech mobile app solutions. And as per our knowledge, the FinTech app development cost starts from $10000 to $15000. Though, there are several factors behind the cost evaluation. For example:
- Number of Features and Complexities to build them
- Number of Hours Spent on development
- Developers expertise
- The country or Region of Development team
- Desired Platforms for the project(Android, iOS, or Both)
- Technologies stack used in app development
- Backend requirements
- Admin Panel Features
It’s no rocket science to estimate the cost to develop a peer-to-peer payment app. However, we need to know your preferences in terms of project requirements. So, whether to hire app developers or estimate your project cost, you can count on us!