From being in physical branches to using information technology (IT) and big data, the banking sector is transforming. Even before this revolution commenced, banks and markets had become interlinked, and most of the middleman’s operations became market-based.
Banking entities confront competition from different mediators in their basic business activities, such as payment and advisory services. An evolution in technology usage, for delivering new services and making new business models has been evolving with the growth of the FinTech industry. The speed of embracing various new digital technologies increased considerably.
Users are observing the growth of the internet economy, which has progressively led to online P2P payment platforms. Peer-to-peer apps are widely adopted today.
Among those who use any P2P Payment App, at least 70% confess that the app offers high convenience and saves a lot of time.
The P2P solutions drastically improve the user experience for the sender as well as receiver over a simple initiation of a bank transfer in the banking app.
Before enlightening where these solutions are being highly valued, it is significant to first determine common use cases such as,
| Anyone giving a cash gift Compensating a colleague or friend Collecting funds Splitting bills Shared expenses that need to be settled |
A standard bank transfer can be leveraged for all these scenarios but have some discomforts such as,
| It is necessary to exchange the IBAN of the recipient Add all the essential information Risk of mistakes A recipient does not receive a notification |
A good and decent P2P payment app is everything about user-friendliness, convenience, and swiftness that address all the above discomforts.
| Senders can acknowledge the recipient through the phone number or email name over the IBAN. Recipients can generate a QR code so the sender can easily scan it to make a payment. Recipients can also get notified of the payment received. |
Moreover, a worthy Peer-to-Peer payment app also should be,
| Simple to set up with easy sign-up and linking of a bank account/ Debit/Credit Card Provide high security through password/PIN code/Fingerprint/Face recognition along with the notifications when funds are sent/received. Offer short transfer times |
Value-added services offered by P2P Payment App
Splitting Bills
It enables the splitting of one or multiple amounts paid by various people or a group. It lets the users create one or more groups and invite people to join them. Users can easily determine who is involved in the costs by adding one or more expenses.
It is possible to split the costs automatically in reimbursement requests and enable one or more split scenarios such as equal divide/specific divide. Multiple users can add expenses in the group as well as automatically figure out the least number of transactions needed to get all compensated.
Reimbursement Management
While sending a reimbursement request, the app automatically attaches the concerning expenses and the calculated amount of the reimbursement request. A payment transaction on an account can be associated back to the expense detail as the app creates structured comments automatically. The expense section also enables searching on a structured comment of a transaction to find back the corresponding expenses.
Partial reimbursement enables partial payment, and the recipient and payer get informed of the remaining amount. Reimbursement plans automatically initiate a plan to compensate an amount over a given period. Follow-up of reimbursement enables users to send reminders to a payer automatically or manually.
Different Payment Methods
Linking to only bank accounts or credit/debit cards is a traditional method now. Today’s P2P payments platforms allow users to choose between different payment methods. Users can also pay part of a transaction with any of the earned gift vouchers and the remaining amount from a bank account. Payment is done only when all essential instructions are followed.
The selection of the preferred method can be quite complicated. A tool can derive the best option to execute a payment based on an AI model or based on requirements provided by the users.
Expense Management
The P2P payments offer expense management abilities such as scanning receipts and automatically determining expense features through OCR (Optical Character Recognition).
It is possible to add meta-information to expenses such as a category, description, labels, person involved for reimbursement, etc., automatically determining costs from bank account or credit card bills, support validation process, search and filter capabilities, bulk updates, export expense details, etc.
Multi-Currency Support
The P2P payment app supports different currencies enabling users to add expenses and payment requests in multiple currencies. The app also converts expenses automatically such as costs in USD and compensation in EUR. It can be performed according to the market exchange rate or based on a manually added exchange rate.
The platform can also offer a financial service to safeguard the risk of unsteady exchange rates.
Advanced Identification Methods
The P2P platform allows users to initiate payment through social media accounts such as Facebook, Twitter, Google, LinkedIn, etc. It is also possible for a recipient to send a specific link that can be visited by everyone who wants to pay money.
Ures can make payments based on NFC, Wi-Fi, or Bluetooth communication between devices, GPS-identified proximity of another person, facial recognition, etc.
Summing Up
Digital advancement in the technology in FinTech has a huge impact when it comes to increasing competition and accessibility of banking markets. Banking sector shifts toward a user-centric platform-based model development such as peer-to-peer mobile payment solutions with the possibility to enhance efficiency with innovation.
The advancement of new technologies, evolving customers’ expectations, and stricter regulations are forcing banks to constantly keep up with technology in a changing world. It is the right time to address the demands of the customers and develop a P2P payment app that is fast, secure, and reliable. Get in touch with the right mobile app development company to get the highly secure, fully-featured P2P app delivered.
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