Raise your hand if you agree to the fact that in today’s world, you don’t need to roam around with cash and checkbooks to do a payment. Things began to change in the market with the launch of a few successful payments apps like Zelle, Venmo, PayPal, Square Cash and more.

Such peer to peer payment apps is slowly becoming part of the daily routine of users. Sometimes people feel it annoying to just walk to the ATMs or to write a check to do payments. And it is the main reason why they are getting more engaged with such peer-to-peer payment apps.

Are you planning to establish a startup in the financial sector? Or How to create a mobile payment app like Venmo? This blog will quench your thirst for ‘How to make a peer-to-peer payment app?’

But first, let’s look at the below-given statistics!

Stats Showing the Success of Peer to Peer Payment Apps

  • According to Allied Market Research, the global P2P market will hit $9,097.06 billion by 2030.
  • Payment apps like Venmo show a Year-on-Year increase of 44% in the payment volume. [Source – Business of Apps]
  • P2P payments will hit $612.23 billion by 2023.

Stats p2p payment apps transaction

The market will reach its peak in 2023 and continue to grow in the years to come. To create p2p payment app, hire dedicated developers today!

Glimpse on Peer to Peer Payment Apps

Planning to have a startup in the financial sector comes with lots of crucial decisions. So to make your decision quite simpler in terms of the P2P payments apps, here I’ve listed top apps that you can clone for your startup.

P2P Payment Apps Like Zelle

Zelle, a money transfer app, was launched in 2017. It allows uses to send or receive money with the help of an email address or a phone number. Apps like Zelle will directly transfer money from one bank to another as per the requests made.

Zelle does not charge any fee for the transactions to the sender or receiver. It even comes with multiple security features to ensure that the transaction process goes smoothly. And one more thing here, if you use the Zelle app through a financial company mobile app then your bank will ensure the security. Your bank safeguard may include FDIC insured.

You may find many alternatives to Zelle but it is one of the most popular apps among the users. Henceforth, having a startup by building apps like Zelle will benefit your business. In the later part of this article, we will go through how to Build a P2P Payment App like Zelle.

Venmo – A Money Transfer App

Apps like Venmo are owned by Paypal and are one of the most successful money transfer apps that people opt for. You can use Venmo to buy various goods and services that even includes Uber in it.

We cannot call Venmo alternative to Zelle, as here it must have an account in Venmo to transfer the money. Both the users must have a Venmo account for the successful transaction. There will be a money transfer directly into the bank account but the money will be transferred in the user’s Venmo account.

How Much Does it Cost to Use Venmo?

Apps like Venmo will charge a 3% fee if you want to transfer money directly from the credit card. With that, you even need to pay a 3% fee if you transfer money and opt for purchase support. There is no transfer fee for sending money from one Venmo account to another. If you want to transfer money from a Venmo account to a bank it may take 1 business day and no extra charges. But if you want an instant transfer for the same 1% charge feel is applicable.

It shows that the Venmo Business model is quite different from that of Zelle. Another Venmo alternative you can have is Square Cash.

So, planning to build an app like Zelle or Venmo? If you’re still confused about it let us have a comparison of Zelle vs Venmo.

Ready to transform your P2P app idea into reality? Let’s build it together!

Comparison between Top Apps for Payment – Venmo vs Zelle

When we talk about the comparison between the p2p payment apps like Zelle and Venmo. Here are a few points of comparison to take note of.

  • The first and foremost point is mobile payment apps like Venmo and Zelle have completely different business models. Zelle has a bank-centric business model while Venmo comes with a standalone financial services business model.
  • An app like Venmo is a social element wherein Zelle lacks the same.
  • Zelle does not charge any fee for the bank transfer while Venmo will charge a 3% fee when transferring money through a credit card.
  • Apps for payment like Zelle are quite faster in a transaction in comparison to Venmo.
  • Zelle is a gateway service henceforth you cannot hold the funds. While with Venmo you can hold funds due to its wallet function.

comparison between zelle vs venmo

These were the major comparison points in Zelle vs Venmo. Both have their own advantages and disadvantages.

SEE ALSO: Stripe vs Braintree: Which is the Best Payment Processor?

How to Create An App Like Zelle & Venmo?

So, how to build a P2P payment app like Venmo or Zelle would be a most curious question running through your mind. Let us bring your curiosity to an end!

We would recommend you start with a smaller market region so that you can have a chance to optimize the app and see how users are responding to it.

Firstly, select the business model for your app. As I mentioned in a comparison above, have a look at the functionalities you want in your payment app. Zelle and Venmo both have completely different business models, henceforth first you need to select one of these two. If you want to follow Square Cash, then it is a Venmo alternative therefore they are almost similar to each other.

Once you choose the P2P payment app you want to clone. Make a list of the features you want to include in your app. One thing to take note of here is the security of the transaction. Therefore, getting certified as per the payment card industry guidelines will help you to build the trust of the users and to avoid any future issues. Make sure that you design the UX/UI of your app keeping security and reliability in mind.

To build a payment app, data security during migration is very crucial. API development and integration for the same is the best choice! It is a common practice to use third-party APIs when building financial app. For instance, API like Synapse Pay will let you create secure accounts and manage compliance. Whereas Dwolla API will give you an opportunity to easily connect to the US banking systems when you start your journey towards how to create an app like Venmo or Zelle or CashApp!

Invest in building the customer’s trust as it is the most important thing for financial apps. Have features like in-app chat, support & helpline, etc to gain the customer’s trust. One last thing to note here is to develop a p2p payment app like Venmo or Zelle or even Square Cash hire a reputed software development company. The only reason is a peer-to-peer payment app requires the utmost security and proper functioning. A single mistake in-app can make you suffer huge losses.

Challenges Faced By P2P Payment Apps

Although entrepreneurs today are heading towards the digital payment era, they will face a few challenges in their quest for How to build a p2p payment app! Some are technical challenges, while the rest are non-tech.

Currency Conversion

With 180 countries across the globe, sometimes it may be difficult to keep everything on track. P2P payment service providers have to overcome this challenge of converting the currency in real time. In P2P payment app development, the transfers in peer-to-peer payment apps should be swift and quick.


Whether it is a P2P payment app like Zelle or any other, security is a major concern. It is the biggest challenge that any payment app development company has to face. It is essential for P2P payment service providers to have a secure data management system. A lot of confidential data is present with such apps. Adding more to this, your motive shouldn’t be restricted to ‘How to build a payment app?’. Instead, it should be ‘How to build a secure payment app?’

Slow Change in Mindset

case vs peer to peer payment app

The non-tech challenge which any P2P payment service providers face is the lack of trust of the people. It is tough to change the mindset of people toward the digital payment thing. People are still comfortable with using the traditional payment method due to a lack of trust in the digital thing.

Case of Dispute

There are many issues that come from peer-to-peer payment apps. For instance, when a sender transfers money to his relatives but it went to someone else’s account. Or the money got deducted from the sender’s account but not received by another person. What will be the solution to such cases of disputes?

Comply with PCI DSS

For every P2P payment app, it is compulsory to follow PCI DSS compliances. Here are a few criteria that a P2P payment app solution should meet.

  • Creating powerful access control standards
  • Maintain a secure and strong network
  • Keep monitoring and testing networks
  • Secure confidential information
  • Build and maintain a secure system and network.

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Are You Ready To Build Your P2P Payment Apps like Zelle?

Peer to peer payments apps are redefining the way we do transactions. And the future of such money transfer app development is shining bright!

Investing to build payment apps like Zelle or Venmo can bring lots of fortune to your startups in the financial sector. People are slowly gaining trust towards such apps and have started migrating from traditional payment to digital.

If you still have any doubts regarding how to create a money transfer app or cost to develop a p2p app like Venmo or Zelle. We have an expert team that will guide you through our fintech app development solutions.

So let’s talk!!

Frequently Asked Questions – How to Build a p2p Payment App

First of all, you must prepare yourself financially and mentally for you are going to start your entrepreneurial journey! Up next, you should consult a reputed FinTech app development company that can help you from app conceptualization, strategizing, designing, development, and deployment.

To create a p2p payment app, you must use the latest technologies only. Python-Django and MEAN are great options for web apps. In case you are choosing iOS app development, go for Objective-C and Swift. And for android, Java and Kotlin are the ay to go! For more queries, simply reach out to us and we will help you!

Paresh Sagar

Article By

Paresh Sagar

Paresh Sagar is the CEO of Excellent Webworld. He firmly believes in using technology to solve challenges. His dedication and attention to detail make him an expert in helping startups in different industries digitalize their businesses globally.