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 the 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 for a startup in the financial sector? Then you must look at the below-given statistics.
Stats Showing the Success of Peer to Peer Payment Apps
- The market for P2P payment apps will see a growth rate of 9.7% in the upcoming years.
- The global P2P transaction will hit $369.8 billion by the end of 2020.
- The peer to peer payment users will rise to 8 million by 2021.
- Payment apps like Venmo state an increase of 70% in the payment volume every year.
- Peer to peer payment apps like Zellesaw an increase in payment value by 56% i.e $44 billion.
- P2P payments will hit $612.23 billion by 2023.
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.
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 a completely different business model. 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 the 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 credit card.
- Apps for payment like Zelle are quite faster in a transaction in comparison to the Venmo.
- Zelle is a gateways service henceforth you cannot hold the funds. While with Venmo you can hold the funds due to its wallet function.
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 in your mind. Let us give you an answer to your curiosity.
We would recommend you to 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 a completely different business model, henceforth first you need to select the one out 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 a note 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.
Do drive your cost down and ensure the security of the app, integrate various third party APIs. It is a common practice to use third-party APIs when building financial apps. 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.
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 utmost security and proper functioning. A single mistake in-app can make you suffer huge losses.
Challenges Faced By P2P Payment Apps
Even though the world is heading towards the digital payment era, there are a few challenges faced by it. Some are technical challenges while a few are no 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. The Peer to peer payments apps even needs to make sure the money transfer takes less time.
Security
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 important for P2P payment service providers to have a secure data management system. As a lot of confidential data is present with such apps.
Slow Change in Mindset
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 the people towards 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 which come from peer to peer payment apps. For instance, when a sender transfers the 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 the PCI DSS compliance’s. 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.
Are You Ready To Build Your P2P Payment Apps like Zelle?
Peer to peer payments apps is redefining the way we do transactions. And the future of such app development is really 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 building or cost to develop a p2p app like Venmo or Zelle. We have an expert term who will guide you for the same.
So let’s talk!!
