Posted in:

How To Build A P2P Payment App: Step-By-Step Guide

© by

Nowadays, peer-to-peer payment apps are an effective tool for transferring funds between people. Using your smartphones, you can pay for your services and purchases by staying at your home premises. Merchants receive direct payment to their account or card by assimilating a payment app into their websites. Moreover, you may choose an available application, but you can also develop a custom peer-to-peer payment app.

According to eMarketer, the P2P mobile transactions value will touch $612.23 billion by 2023, so this market will continue to evolve. So creating a business idea related to P2P will provide you with a great chance to succeed. Do you know how to build a P2P payment app? This article has covered the steps to building a powerful peer-to-peer payment app. 

So, drill-down and explore the most reliable and practical steps to build a P2P app.

Steps To Create A Robust And Legally Compliant P2P App

The following steps are significant for developing P2P apps, but before developing your team, you have to draw your clear requirements and create your project’s concepts.

Choose the P2P app type 

There are various P2P apps, but the most famous ones are banking and standalone solutions. Based on your chosen business model, you can pick one of them, but still, you have to be aware of all payment app types. Below is a brief description of each type:

  • Bank-Based solutions

Bank-based apps include a bank as one of the parties. Many banks are developing their P2P payment systems to make services more accessible and convenient. These apps help to receive money and make direct deposits to bank accounts. To accept the payment, the sellers should have POS terminals.

  • Standalone services

Different independent providers such as Venmo and PayPal offer their payment systems. These applications help users develop a digital wallet and utilize it to make payments and store electronic money. These apps typically support VisaCard and MasterCard.

  • Social media platforms

Social media such as Facebook, messengers, etc., have developed their built-in payment features so social media users can send money to anyone without leaving the app. If you are unwilling to build your social network, this P2P payment type is not suitable for you.

  • Mobile OS systems

In this category, the features of payment options are more built-in instead of full-fledged applications. Samsung Pay, Apple Pay, Android Pay, etc., are examples of Mobile OS payment systems

Include the required features for your P2P app

Talking about features, you must list needed features so a development team can estimate them. Start with the basics, then add more features. Study your target audience, create a user portrait, and map out the user flow to avoid missing anything.

Don’t develop all features at once; it’s unreasonable and expensive. Prioritize core features, then add new ones if needed.

Opt for the correct technology

The correct technology makes a P2P app more useful and intriguing. We shouldn’t restrict ourselves to FinTech breakthroughs like NFC and biometric ID because it is vital to compete.

New technologies transform the financial sector with RTP, unified platforms, AI, and blockchain. The quicker, more convenient, and more profitable your app, the better your chances of success. 

Blockchain is a promising technology. According to MarketsandMarkets, the worldwide blockchain market will reach $23.3 billion by 2023. Blockchain-based solutions are safe and transparent so that consumers can evaluate them accurately—a distributed storage system saves transaction data in connected blocks. No block may be modified or eliminated without ruining the system. The blockchain was intended to construct peer-to-peer networks without intermediaries.

Secure your app

Peer-to-peer payment apps require a higher level of security, even though we’ve already talked about it. The transfer of money and the information about your users’ accounts and past transactions must be secure. Cybersecurity venture’s official annual cybercrime report states that the total cost of cybercrime committed globally has reached $6 trillion by 2021. You don’t want your users to be the targets of hacker attacks, don’t you? Here is how to guarantee that your application has the appropriate level of security.

You can use a unique ID/OTP to prevent inadvertent payments or fraudulent acts. To protect yourself, try to utilize all the security measures built into devices, such as fingerprint scanners, facial recognition, or at least two-factor authentication. In addition, you must safeguard your digital wallet and guard against the loss of your private information. Ensure that you talk to a development team about the security elements you may include in your payment app.

Provide regulatory compliance

Regulatory compliance is just as vital as security in the modern world. Your payment app must fulfill payment standards. FinTech is said to be unregulated by industry experts, although different locations already have documentation that must be considered. As a result, creating worldwide software that people in all countries can use is quite challenging. When creating a P2P payment software, you should select a target location and adhere to the regulations and suggestions of that particular area.


While building a P2P app, you have to plan the features and technologies you want to enjoy in your application – this app-building process involves more analytical work. 

So, research your user and define your app’s functionality before you begin the process. If you feel any difficulty initiating or implementing the process, you can pick a skilled development team.

We are Owlab, a software development company that provides outstanding software development services. The experts of Owlab have excellent expertise and can serve in various niches such as blockchain, retail, healthcare, fintech, etc. So no matter whether you want to develop an app, take any suggestion or look for any helpful solution, you can consult us. 

The Owlab team is always ready to implement your technical ideas and provide you with the most valuable solutions to get what you are looking for in your application. So feel free to contact us