How To Build a P2P Payment App? A Complete Guide

How To Build a P2P Payment App? A Complete Guide   FinTech app users are now enjoying enhanced security and efficiency, particularly in payments, thanks to the digital boom that has revolutionized the way transactions are conducted. The rise of P2P payment app development services is a key outcome of this FinTech transformation, enabling effortless and contactless money transfers.   These apps have become essential tools for splitting rent, restaurant bills, and travel expenses. They have replaced traditional banking and ATM visits, simplifying fund management and transfers in our cashless society. By offering features such as transaction history tracking and real-time notifications, these apps provide a level of transparency that traditional banking methods cannot match.   The P2P payment app revolution signifies a shift towards a more technologically advanced and interconnected financial world. As these apps continue to evolve, they promise greater efficiency, security, and convenience, especially for the younger generation that will increasingly influence the financial industry.   This trend is reflected in the projection that global P2P transactions will exceed $1927.23 million by 2030. Additionally, according to Statista, 48% of respondents prefer using P2P applications for direct money transfers.  

What Are P2P Payments?

Peer-to-peer (P2P) payments involve electronic money transfers between individuals through dedicated P2P payment apps. These applications securely connect users’ digital wallets and bank accounts, tracking the transaction amounts. When a transfer is initiated, funds are withdrawn from the sender’s app wallet or bank account, ensuring seamless, quick, traceable, and user-friendly transactions.   Delving deeper, P2P payment apps can be categorized into three primary types, each with unique advantages and leading market players.  

Types of Peer-To-Peer Apps

Independent Mobile Payment Apps

  This category of online mobile payment apps operates autonomously, separate from traditional banking systems. These apps manage and secure funds through their own systems, independent of financial institutions. A key feature of these apps is the ‘Wallet,’ allowing users to store money securely within the app. Users can then transfer funds to their traditional bank accounts or conduct peer-to-peer transactions as needed.   These apps provide users with control over their personal financial settings, enabling them to manage their money independently and conveniently. For instance, PayPal has expanded its user base to over 202 countries since its inception, with millions of users conducting thousands of transactions annually in over 100 different currencies. This success directs entrepreneurs towards developing similar P2P payment apps like PayPal or Venmo.  

Bank-Centric Payment Apps

  Another important category in P2P payment application development is bank-centric apps. These mobile apps involve banks in the transaction process. While most banks have their own apps, bank-centric P2P payment apps facilitate fund transfers through their partner banks and credit unions. These apps draw from and deposit funds directly into bank accounts rather than using a stored currency account. Examples of bank-centric apps include Dwolla, Zelle, and Popmoney.  

Social Media-Centric Payment Apps

  Social media-centric apps represent another significant type of mobile payment app. Launched by social media giants, these apps enable users to transfer money using their credit or debit cards without leaving the social media platform. Examples include Facebook Messenger, SnapCash, and Google Pay. These apps integrate financial transactions seamlessly into social media interactions, providing a convenient way for users to send and receive money within their favorite platforms.  

How P2P Payment App Works?

Whether it’s for paying rent, splitting a restaurant bill, or sending a birthday present, peer-to-peer (P2P) payment apps are becoming increasingly common. These apps offer a quick and easy way to transfer money, often eliminating the need for cash or checks. Here’s how P2P payment apps work:  

Sign Up and Login

  After downloading the P2P payment app from an app store, users must sign up to create an account. This typically involves providing personal information, such as phone numbers and email addresses.  

Linking Bank Account

  Users need to link a funding source to their account, such as a bank account, credit card, or debit card. Linking a bank account is common as it facilitates smooth transactions between the user’s bank and the app.  

Adding the Recipients

  To transfer funds, users must add recipients to their contact list within the app. Most P2P apps use email addresses or phone numbers for identification, so both participants need to be on the same platform.  

Initiating Transaction

  Once a recipient is added, the user enters the desired amount and, optionally, a note or description for the transaction. They can then choose the payment method (e.g., debit card or bank account) to initiate the transaction.  

Validation and Authorization

  The P2P app confirms the sender’s identity and checks the associated funding source to ensure there are sufficient funds for the transaction. Users might need to enter a PIN, password, or use biometric verification (such as fingerprint or face recognition) to verify the transfer.  

Transaction Processing

  Once the transaction is confirmed, the app debits the sender’s account and credits the recipient’s account. Some apps may hold the money in a digital wallet until it is transferred to the recipient’s bank account.  

Confirmation Notification

  After the transaction is completed, both the sender and recipient receive instant, real-time notifications confirming the transfer’s success.  

Money Transfer

  Funds received through the P2P app can usually be transferred to any linked bank account within the app. The time required for this step may vary depending on the app and the recipient’s bank.   P2P payment apps have made sending money between people quick, safe, and easy. However, since features and fees can vary from one platform to another, users should be aware of the terms associated with the app they use. Now, let’s explore the steps to create a P2P payment app.  

How To Build a P2P Payment App?

Choose the P2P App Type

  First, select the type of P2P application you want to develop. Options include banking-centric apps, standalone solutions, or apps supporting real-time payments.  

Prioritize Mobile Platform

  If your budget is limited, choose between Android or iOS app development. Prioritizing your mobile platform offers two benefits:   
  1. Understanding user preferences and analyzing which features work well and which need adjustments.
  2. Allowing space to develop another version of the app for multiple platforms later.

Define Features for Your P2P App

  The features of your P2P app are crucial to its success. Start with basic features and gradually add key elements that define your app’s unique selling proposition (USP). Research your target audience, design a user profile, and study the user flow to ensure a seamless experience.  

Choose the Right Technology Stack

  Selecting the right technology stack is vital for making your P2P payment app functional and engaging. Incorporate the latest FinTech innovations such as NFTs, biometrics, and face ID payments. Use tools and technologies that enhance your app’s chances of success, and stay updated with blockchain-based FinTech trends and supportive crypto technologies.  

User-Friendly UX Design

  The user interface and UX design should be intuitive and straightforward. Ensure features are easy to read and navigate, so users can quickly understand how to use the app.  


  Integrate robust security protocols into your P2P payment app. Include features like fingerprint and face recognition, scanners, and two-way authentication to ensure maximum data safety and compliance.  


  Conduct thorough testing and quality assurance to fix bugs early. Perform comprehensive tests, including beta testing, to ensure your app and its payment gateways function smoothly.  

FinTech Legal Compliance

  Ensure compliance with PCI-DSS (Payment Card Industry Data Security Standard). Obtain a PCI-DSS certificate to build transparency and trust in the market.  

App Launch

  After extensive testing and ensuring legal compliance, launch your app on app stores. Implement a well-planned marketing strategy to attract users and create awareness about the app.  

Post-Launch Support

  Provide post-launch maintenance and support, including bug fixes, user support, and ongoing monitoring. This ensures your P2P payment app remains reliable and secure over time.   By following these steps, you can build a successful P2P mobile app. Next, let’s explore the key features to consider when developing mobile payment apps.  

Must-Have Features For P2P App Development

Unique ID/OTP

  Every FinTech app incorporates an OTP or unique ID that is sent to and verified by the sender before funds are deducted from their account or wallet. To enhance security, some P2P payment service providers require OTP verification every time the app is opened.   Technical Frameworks used: Third-party SDKs like Twilio, Firebase, Nexmo, and Digimiles.  


  This feature informs users when a payment has been initiated and received, providing updates on account or wallet activity. Push notifications alert users about upcoming bill due dates and other quick account-related updates.   Technical Frameworks used: REST APIs, Chrome notifications, Amazon SNS, Firebase Cloud Messaging, and APNS.  

Send Bill, Invoice

  This feature allows users to scan and send bills to the person who needs to make the payment. Both the sender and receiver should receive a generated invoice for the transaction, saved within the app.   Technical Frameworks used: REST APIs, Bamboo Invoice.  

Transaction History

  Transaction history provides users with a summary of all past transactions made through the app, an essential feature for any P2P payment app.   Technical Frameworks used: REST APIs.  


  Incorporating a chatbot can be highly beneficial. This feature assists with various disputes that can arise during transactions, such as issues with lost internet connections or incorrect deductions.   Technical Frameworks used: Third-party SDKs like Zendesk, Microsoft Bot Framework, LUIS,,, Chatfuel, Facebook Messenger Chatbot, and Amazon Lex.  

 Transfer Amount to Bank

  Users often seek the ability to transfer received funds to their bank accounts. This is a preferred feature in P2P payment applications, despite each app having its own business model.   Technical Frameworks used: ACH, Dwolla.   These are some top-notch features to include in your P2P payment app to increase user engagement. However, implementing these features also presents numerous challenges. Let’s explore those next.  

How Much Does It Cost To Create a P2P Payment App?

 Understanding the Cost of Building a P2P Payment App

  Now that you have a clear understanding of how to create a P2P payment app, it’s time to consider the cost involved. The cost of building a P2P payment app largely depends on the complexity of the application. Let’s take a closer look:  

 Basic P2P Payment App

  A simple P2P payment app with limited features and basic operations can cost between $40,000 and $120,000. These apps primarily enable monetary transactions between users and may lack additional features.  

 Medium-Complexity P2P Payment App

  A medium-complex P2P payment app ranges from $120,000 to $200,000. These apps offer a broader range of features and services, including enhanced security, an intuitive user interface, and additional functionalities such as transaction history and bill splitting.  

 Complex P2P Payment App

  A highly complex and advanced P2P payment app costs $200,000 and above. These apps are rich in features and designed for extensive use. They include advanced security protocols, global payment gateways, third-party service integrations, and comprehensive user management and transaction tracking tools.  

Factors Influencing the Cost of Building a P2P Payment App


 Functionality and Features

  The complexity of features is a major cost factor in P2P app development. Advanced features like real-time notifications, seamless interaction with payment gateways, multi-platform compatibility, and high security increase both development time and resources, thus raising overall expenses.  

Design and User Experience

  An intuitive, user-centered design is crucial for a successful app. While a high degree of design complexity enhances user engagement, it also requires a significant investment in design and development resources.  

Security Measures

  Security is paramount for P2P payment apps due to the sensitivity of financial transactions. Implementing robust security measures such as data encryption, rigorous user authentication, and fraud prevention techniques requires specific expertise and financial investment, thereby increasing development costs.  

Platform Compatibility

  Developing apps for multiple platforms (web, iOS, and Android) can be more expensive due to the additional work needed to ensure flawless functionality across different systems. Although cross-platform development raises costs, it broadens the app’s reach and boosts user engagement.  

Tech Stack

  The choice of tech stack, including third-party integrations, frameworks, and programming languages, significantly impacts development costs. Advanced tools and frameworks may require more experienced developers, increasing hourly rates and overall expenses.  

Location of the Development Team

  The geographic location of the development team greatly influences costs. Development tends to be more expensive in regions like the USA and Western Europe due to higher labor costs. Outsourcing to regions like Central and Eastern Europe or Asia can reduce costs. However, hiring a higher-cost team can ensure end-to-end transparency and post-launch maintenance services.   Considering these factors, the cost of building a P2P app can range from $40,000 to $200,000 and above.  

How Can Rebuild Help You With P2P Payment Application Development?

Rebuild understands how people pay, buy, and invest. We offer comprehensive FinTech app development services, including investment solutions, dynamic KYC platforms, fraud prevention, and wealth management software. Our services are meticulously designed to meet the diverse needs of your customer base and ensure secure and easy financial transactions.   We follow a rigorous security approach, providing end-to-end digital payment solutions that guarantee the best protection for sensitive financial data. Our solutions incorporate modern security features to safeguard your FinTech company and client data.   For example, we have worked on several FinTech projects like Bajaj Finserv, Mudra, and EdFundo, helping these businesses boost user engagement. We created reliable and secure P2P payment applications, establishing ourselves as one of the most trusted FinTech app development companies.   Choosing Rebuild as your P2P payment app development partner opens a world of limitless possibilities for unique FinTech application solutions. Our goal is to equip your company with the technology and tools needed to thrive in the rapidly evolving digital economy.  

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