What Are Peer-to-Peer Payment Apps and How to Develop One?
The increased popularity of online and mobile banking and e-commerce applications made us see peer-to-peer payments as an essential part of the technology landscape we live in. Traditionally peer-to-peer payments required writing a check or walking to the nearest ATM, but as of today P2p applications are leading us to a more “walletless” economy than ever before.
There is a growing trend for commerce to evolve beyond person-to-market to person-to-person exchange. In terms of peer-to-peer payments Paypal has dominated the market for the last decade, but now other companies are finally starting to catch up. According to Business insider, volume of mobile peer-to-peer transactions could reach $86 billion in the US within the next two years.
What are peer-to-peer payment apps?
The P2P service is sort of like a middleman: peer-to-peer payment services help people transfer funds from their bank account to another person’s account or card using software applications.
Peer-to-peer apps are especially popular with younger users who are more tech-savyy and less worried about potential danger of sharing their financial information with a third-party software product.
There is a number of mobile applications that people use when they want to send money to each other outside of the established business context — for example, when you pay back your friends, who lent you money for a movie ticket, or you want to split the bill at the restaurant among several people in the group.
Peer-to-peer application market is still not mature, with multiple services competing for the same segment of the market.
Current market of peer-to-peer payment applications is presented by two major groups of apps:
- Payment services/mobile apps launched by big companies (Google Wallet by Google, Paypal.me by PayPal, SquareCash by Square )
2. Payment services that are a result of a product startup or a separate payment service company. This type is often represented by apps that partner with banks or integrate payments with social networks (Circle, PopMoney and ClearXchange).
These services can start on their own, but tend to join bigger players later on as a result of acquisition or a merger when they are mature enough. For example, Venmo was first bought by Braintree in 2012, and became a part of PayPal “empire” when PayPal bought out Braintree a year later. This tendency means that there is still going to be enough room on the market for small startups that are investing in developing peer-to-peer payment applications. So if you’re starting with your P2P app from scratch you don’t have to worry about directly competing with financial giants. Originally published: What Are Peer-to-Peer Payment Apps and How to Develop One?