IS P2P A GAME-CHANGER IN THE FINTECH INDUSTRY?

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P2P payment

More people are utilizing mobile payment now that it is a reality for a variety of reasons, including avoiding using credit cards, advancing the cashless economy, and taking advantage of order-in-one-click technologies. Peer-to-peer payment apps (P2P) are necessary to expedite and optimize all types of mobile payments, including sending remittances, dividing bills, making reservations for trips, and even managing to spend.

Building a payment application does indeed update financial technology because it enables users to send money utilizing peer-to-peer payment applications, mobile wallet apps, cryptocurrency platforms, and m-commerce apps. P2P mobile transactions will be worth $612.23 billion by 2023, according to eMarketer. Since this market is still developing, you stand a strong chance of being successful if your company idea involves P2P payments.

Peer to Peer Payments, often known as P2P Payments, are electronic transfers done between two people with the aid of a device called a P2P Payment Application. Through these programs, each individual account is in connection with the digital wallet of the other user. As soon as the transaction takes place, the application’s account balance logs it and immediately withdraws money from one user’s bank account or app wallet and sends it to other users. For instance, mobile app development companies enabled installment payments to a merchant or a landlord using P2P.

IMPORTANT FEATURES FOR PEER-TO-PEER PAYMENT APPS

  • Sending and Requesting Money:

In addition to being able to give the desired amount of money, a user should also be able to request money from another user.

  • Exchange of currencies:

Exchange of currencies:  You shouldn’t give up automatic currency conversion because it’s a fantastic feature that makes P2P payment programs so well-liked. By adding this feature, you’ll make it possible for your users to transact across borders, pay for services and goods while traveling, and avoid thinking about currency conversion.

The most effective way to use this feature is to have your payment app sync with the bank’s exchange rate at the time of the transaction.

  • Transfer to a bank account:

Transfer to a bank account: In addition to card-to-card transfers, users may also need to make money transfers from card to bank account. Give them that oppor

Give them the opportunity.

  • Push notifications:

An IOS App Development Company can benefit its customers with push notifications. Notifications of new offers, promotions, or changes will be possible to send. Users will also be able to read messages right away, such as when someone credits their card. Allow consumers to select which notifications they wish to get on their phones, but keep in mind that push notifications can be both helpful and frustrating.

  • Digital Wallet:

Any payment app must include a digital wallet as its central component. A user can store his digital currency and make payments using a wallet. Digital wallets typically interact with external systems and services, payment card tokenization services from VISA and Mastercard, and other systems to provide a wide range of capabilities.

  • Passwords or IDs that are only used once:

Passwords or IDs that are only used once:  Users must confirm the unique ID and OTP  in order to prevent fraudulent or unintended transactions (one-time-password). You can define the requirement that an OTP is an input each time a user logs in if you wish to offer an even greater level of protection.

ADVANTAGES OF P2P APPS

P2P payment apps are commonly utilized by both consumers and companies. For instance, businesses incorporate payment apps into their online sites because it is simpler for them to receive money for things directly to their cards. Moreover, you can carry out direct cryptocurrency transactions by developing a payment app on the blockchain. Other advantages of peer-to-peer payment apps include the following:

  1. Your app makes it simple to keep track of your expenses.
  2. You may reach a bigger consumer base and guarantee cost-effective cross-border transactions.
  3. Anywhere there is an Internet connection, you can make a payment.
  4. Your app can become profitable so you can benefit more from it.
  5. Because there are no intermediaries involved, you save money.

CHALLENGES OF P2P APPS

  • Security:

It is the main obstacle that each company that develops wallet applications must overcome. The most well-known and secure international payment platforms, including PayPal, Cash App, and NIC Asia bank, have in the past fallen victim to hackers. Since these apps house a significant amount of sensitive financial information in one location, the danger is always greater, making it crucial for P2P service providers to guarantee failsafe protection.

  • Regional restrictions:

Numerous smartphone P2P payment apps have one thing in common: they are geographically constrained. P2P apps need to expand beyond their regional restrictions in order to become a leading industry players.

  • Currency exchange:

Currency conversions are a problem that all P2P payment providers deal with. Since there are over 180 operational currencies in the globe, each with its own set of exchange rates, it might be challenging to convert currencies in real-time. Additionally, one must create peer-to-peer payment applications that enable cross-border transactions in the lowest amount of time possible.

  • Respect the PCI DSS:

All businesses that work with private financial information should follow and adhere to PCI DSS compliances. Your solution must protect sensitive data, have a vulnerability management system in place, and establish strict access control criteria in order to adhere to its guidelines.

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About the Author: John Watson