P2P Mobile App Development: Evolution of Digital Consumer Payments

Mobile App Development

Wednesday, 22 April 2020

Ubiquitous connectivity, biometrics, cloud computing, tokenization and the Internet of Things are just a few of the digital trends that will affect the way consumers transact and interact with their payment partners. Global Payment Market underwent a major shift in the recent decade with the outbreak of Pandemic Coronavirus which significantly changed the contours of social and professional life turning the economy upside down.

Mainstream Adoption of P2P Payment App

The ongoing digital and technology revolution, led by the ever-increasing penetration of smart-phones and the internet on mobile, has revolutionized digital payments. This payment space has witnessed the entry of several non-banking institutions offering payment services and solutions. The customers have become more demanding and expect instantaneous and one-touch payment solutions. As a consequence, there have been several progressive changes in the regulatory framework.

While different markets have seen different types of players and solutions becoming successful, some elements of winning models stay common. These include having a compelling value proposition, access to a large customer base, conducive infrastructure, supportive regulations and leveraging next-gen technology.

What disruptions can we expect in the digital payments in the near future?

Adapting to the changing economy, realizing the aftermath of COVID-19 Pandemic, the new business and work culture will be redefined with a strong emphasis on adaptability, efficiency, inclusivity, opportunity and universalism. In the process, the technology will make digital payments simpler. Merchant acceptance network to grow 10x in 2020.

  • Payments will drive consumption – providing access to customer transaction data enabling payment service providers to offer relevant deals, offers and coupons to consumers, thereby influencing their consumption decisions.
  • Consolidation will drive ubiquity – Customers prefer fewer, ubiquitous payment solutions
  • The use of Unified Payment Interface (UPI) provides a great platform for seamless interoperability of PSP’s. These have the potential to drive large scale adoption of digital payments, as a measure to overcome current challenges posed by COVID-19.
  • Digital identity to accelerate customer acquisition: In India, making the use of Aadhar for KYC data will boost the growth of digital payment systems.

With all these findings, there are strong chances that cash to non-cash ratio will invert over the next ten years

How to build a mobile payment app?

  • Support for Online Payments: The mobile payment app must support all the main methods of online payment like the online e-commerce payments, on-the-spot payments at retailers, P2P payments within the system’s network. As part of the process, users must have an option to pay a merchant on an installment plan, pay a taxi-cab service (with the discount calculation), send and receive a friend to friend borrowing request, transfer a borrowing request to a friend with a comment. Additionally, the borrowing limit should be set for a friend. There should be a check on what amount they withdraw and at what time and set intervals.
  • Privacy Settings: Security is a prerequisite with any kind of mobile-based or online payment – To ensure this Data encryption, Two-factor authentication, QR code scanner and PCI-DSS and other regulations compliance.
  • Optimal Development Technology: The P2P Payment app must have Notifications, Unique ID and OTP verification, Sending bills and invoices, Digital wallet, Sending and receiving money, Messaging and Transaction history.
  • Synchronizing Financial Data: A ripple effect follows every transaction that we make online. The system is then impelled to recalculate any amounts that it is supposed to track and which have been impacted by the transaction. For a system that involves a large number of users, this translates to thousands of recalculations at any given instant in time.
  • Seamless Feed: Users must be able to sneak-peek into their previous transactions.

Technology for P2P Money Transfer App

The share of consumers who made the most use of the peer to peer payment applications in the past year in the US (according to Statista) has been incrementing proportionally. One obvious advantage that comes with Peer to Peer money transfer apps is that it can enable you to amplify the various potential outcomes for customization. Here is a list of API’s (suggested) to create mobile payments apps that enable person-to-person payments and disbursement solutions through one recognizable, consistent consumer brand:

  • Google Pay: Google Pay API 
  • SquareCash: The Square developer platform includes server-side APIs that support online payments and mobile SDKs that support mobile payments on a merchant or buyer mobile device. Point of Sale (POS) API, Reader SDK.
  • PayPal: Payments REST API 
  • Retail: Cashtie API
  • Venmo: Venmo API
  • Zelle: Zelle REST API
  • Facebook Messenger: Graph API


Person to merchant (P2M) transactions driven by digital payments at the physical point of sale, followed by the peer to peer (P2P), Business to Business (B2B) transactions and C2B transactions are expected to be major contributors of growth. It becomes imperative in the markets for the Government and the top mobile app development agencies to take a long-term view of building a sustainable digital payments market where regulations are still evolving. Regulators need to emphasize the awareness of the cost of cash and incentivize the use of non-cash instruments (digital/crypto-currency based), while the Government needs to shape the policy that simplifies KYC requirements, making digital payment transactions more user-friendly.

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