Mobile wallets are trendy. Mobile wallets are convenient to use and offer more security than physical wallets. You're in the right place if you've identified a unique business opportunity and wish to create a virtual wallet. Want to start a business? Learn how to develop an eWallet app like Venmo and begin your journey towards success. Payment apps eliminate the need for cash; you can purchase small or large-scale items with just one click. As you can see from the graph below, this digital convenience is growing. Business of Apps reports that by 2021, mobile payments will be used by over two billion people.By 2030, the P2P payments market is expected to reach $,9097.06 billion, growing at a 17.3% CAGR (2021-2030).Payment apps offer a wide range of opportunities to SMEs and startups. It is a great field in which to work. Read this article to learn everything you need to know about P2P app development. This blog will teach you how to develop an eWallet app like Venmo, the best practices, and what it takes to succeed in this highly competitive market.
What is Venmo?
Venmo, owned by Paypal, is the most successful and popular money transfer application. Venmo lets you purchase many online services and products, such as Uber.Venmo was first introduced in 2009. Many users chose it as their preferred payment method because of its features. The majority of Venmo's users were millennials. Within five months, the app had gained so much popularity that Braintree purchased it for $26.2 million.Venmo's original purpose was to be a peer-to-peer (P2P) payment app, which merged the concept of a social networking site with a wallet application. The app allows for safe cashless transactions between friends and businesses. The app will enable users to make one-tap purchases by linking their account directly with their bank or credit card.
- Venmo's feature allows users to search and add friends and view their transactions in an uninterrupted stream.
- The app displays all transactions using emoticons.
- The app's Trust feature enables users to automate payments for recurring expenses such as utilities.
- The app is easy to use and cost-free. All fees are invoiced directly to the firms that benefit.
What are P2P Payments, and How do They Work?
Develop an eWallet App Like Venmo for P2P payment involves directly transferring funds from one bank account to another over the Internet. This service is usually provided by a third-party app that asks for your bank account. These apps use various cryptographic technologies to ensure the safety of your data. Once you've added your bank account, you can request or send money using these apps.People prefer P2P payments over traditional payment methods for several reasons.Payments between peers are almost instantaneous. Traditional methods need to be improved because transfers can take a long time. They could be anywhere from a few hours to ten days. P2P payments eliminate this delay. People who need money immediately can get it by swiping and tapping.Payments between people are much easier. You don't have to wait in long lines or deal with endless formalities. Transferring money with P2P takes only a few moments, unlike traditional bank transfers, which can take hours.As they should, people are highly cautious about bank accounts. They have enough faith in the safeguards if they trust these apps to access their bank accounts.The P2P apps are safe because they follow several regulations and have made great strides. It doesn't mean there will never be a data breach, but the industry has improved compared to a few years ago.
Top Features you Must Add to a Payment App Like Venmo
Venmo and other peer-to-peer apps have made everyday transactions more convenient. If you want to develop an eWallet App Like Venmo, consider the features that make Venmo the best peer-to-peer payment app.
User Accounts and Registration
Venmo is a payment application, and the authentication of users and their profiles is essential. Add the registration option so that users must register and log in to your app before they can use it. Your users can enter their details and financial credentials, such as their bank account or credit card information, and choose the currency they want to use in their user accounts.
Apps must have certain features to ensure the safety of users. When it comes to financial apps, these features are even more critical. Integrate two-factor verification into your app to increase security.
Peer-to-peer apps should be able to accept instant or immediate payments. Speed is essential whether the payment is made to a friend or a merchant. It is important to ensure that your payment app has this feature. You must also make sure the transfers are safe and secure.
Integration of Card & Bank Account
It is essential that they can integrate their credit cards and bank accounts into their account, even if your app includes a wallet. They can then make payments directly to the bank accounts of other users without going through a wallet.
Venmo, a peer-to-peer payments app, has partnered with several online stores to allow users to shop through Venmo. You can create a feature similar to Venmo for your payment application so that users of your app can enjoy a better shopping experience.
Digital wallet or eWallet
When developing an eWallet app like Venmo, incorporate the eWallet functionality into your app to facilitate faster and easier money transfers, similar to how Venmo operates.
Transaction Tracking and History
The feature of your peer-to-peer payment app allows users to track any payments they make. They will also be able to access their transaction history for future reconciliation.
Push notifications and emails can be a great tool to keep in touch with your app users. You can send push notifications and transactional emails. Still, you can also send messages to entice inactive users to return to your app or to inform them about special offers.
Venmo's shared purchase feature allows you to split bills with friends or strangers, whether sharing a taxi, having drinks with co-workers, or going out to dinner. Venmo has this feature, so you should consider adding it to your app.
How to Create a P2P Payment App Like Venmo?
Now, let's talk about how to develop an eWallet app like Venmo. Depending on the current situation, you can hire your developers or work with a software company. The majority of the steps are the same. However, the main difference is in the costs and difficulties associated with hiring and keeping new staff.It's now time to start the development process. What is it like?
The discovery phase is the planning phase for your project, especially if you're looking to develop an eWallet App Like Venmo. You define your goals and expectations and conduct research, such as competitor analysis or market research before you plan your application. This phase usually involves working with a Business Analyst, who will extract your requirements and turn them into documents that cover all aspects of your app. These documents can include technical specifications such as wireframes, prototyping, test plans, and more. Your preferences and the complexity and size of your project will determine which documents you need.You need to create a user's journey before you plan your app. What is your user's primary goal? What are the different use cases of your app, and which groups of users would be interested in these? This information will be included in a technical specification that will describe the business logic of your app.Venmo has a significant user flow that looks something like this:Venmo has many complex features, so the user journeys are varied. Wireframes and prototypes can be used to test user journeys.
Create UI/UX Design
People use P2P apps for convenience. If your interface is straightforward, you will retain most of your users. You must invest in user experience and interface designs. You've heard me mention the user journeys. Make sure to test your UX in the early stages of development.
Develop Your Application
Once the plan has been finalized, the developers have prepared the app's environment, and the tech stack has been decided, it is time to begin the development process. Modern development involves both writing code and testing. These two processes are likely to happen almost simultaneously.You should test your P2P app on real users and build an MVP to try it in the real world before you commit to full-blown development.You must also consider any certification and legal requirements relevant to your target market.
Release and Test Your Application
It's now time to release the application. You've done your marketing, and now users will start to arrive. You want to identify and track any remaining issues by tracking their app usage. If you opt for MVP development, you will get real feedback on improving your app.
Support and Maintain Your App
The work doesn't stop once your P2P app is running. It's now time to update your application regularly, perform security checks, and make improvements based on your users' feedback. Always watch your competitors and look for ways to improve and make more money with your service.
How Does Venmo Make Money?
As a business, you must know that eWallet app development cost is quite high, so you must also consider generating revenue from it. Developing an eWallet App Like Venmo can generate income through several methods and does so often to maintain a high-profit level. You can include the following methods in your eWallet app like Venmo:
Charges for Credit Card Payment
Venmo charges a transaction fee of 3% when you pay with a credit or debit card. This monetization method can be integrated into your P2P wallet software to generate consistent revenue and minimize damages from failed credit card payments.
Venmo earns a lot of money through its merchant partners. The company wants to grow the number of people who use the platform. Venmo's scheme involves retaining a small percentage of transaction fees. This is around 2.9%.
Reduced Money Transfer Fees
Venmo charges a flat rate to all users who wish to use its peer-to-peer quick money transfer service. Venmo usually takes 2 to 3 days to transfer money from a user's account to their bank. However, if the user pays extra to speed things up, it can be done in just a few hours.
Cash a Check
Venmo launched a new service in January 2021 called cash a check, which allows users to cash checks while having the funds transferred into their Venmo accounts. Venmo will enable clients to snap a picture of the check and email it for approval. The peer-to-peer system deposits the funds in the user's account if the money is authorized. Venmo charges 1 percent for its authentication service. The minimum amount to cash out is $5.
Venmo offers customers a cashback incentive at certain businesses, similar in concept to most other debit cards. These cashback schemes give the customer's account a percentage of their purchase price. The partner pays a commission in exchange for recommending that the consumer use this peer-to-peer money transfer application.
Challenges of P2P Application Development
Developing an eWallet App Like Venmo and entering the realm of P2P applications can be a lucrative business. However, they also present specific challenges. Let's discuss some of the challenges you may face when you decide to make a digital wallet app like Venmo.
Cybersecurity poses the greatest challenge to all digital businesses, especially those dealing with sensitive information. You need to ensure that you protect your users' data and their transactions.You need to have a professional team and a data management system that you can trust to build a P2P app. Regular maintenance should include security checks, penetration tests, and encryption.
Currency conversion can be challenging when your P2P app is used in dozens of countries. Your system must constantly track exchange rates in real time to ensure that transactions are accurate and fast.
Not all people trust P2P apps and other fintech solutions. Most people use cash or bank transfers as their primary payment method. They sacrifice convenience in favor of reliability. You want to attract those who use P2P applications and convince others who are still skeptical.
Sometimes, things need to be corrected. A transaction may be sent to the wrong account, or the money might not arrive. It is essential to have an algorithm that can be applied in each case. There are some existing compliances which explain this.
PCI DSS compliance is required for every P2P app. There are a few criteria that P2P applications must meet.
- Access control standards that are reliable
- Secure network
- Regular network testing and monitoring
- Protecting confidential data
Hackers are after money in eWallets, and your app may be a point of entry. It is essential to protect your system and to detect any attempts to gain unauthorized access. The most reliable method to detect fraud and unusual activity is through data encryption and monitoring.
Scaling Your Business
Scalability can be a problem as your app grows in users and features. Planning your app's future growth before you start development is essential. You may end up spending too much money and time on technical changes. Some companies may need to rewrite an app if the architecture cannot keep up with growth.
What is the future of P2P payment apps?
We have already discussed the statistics of payment apps for the next few years. What can one expect from the market in general?
The advent of cryptocurrency is sure to be exciting. Blockchain technology prevents total control by one entity and eliminates corruption and mistakes in the transaction process. The combination of technologies such as blockchain, AI, and big data can be used to build a payment application that uses sophisticated algorithms to confirm and validate the legitimacy of each transaction.Payment apps will be more competitive. New applications are launched daily, challenging existing businesses to perform better. Who knows? Your app is one of the most popular.Must Read:75+ Best Mobile App Ideas 2023 For Your Next Business Startups
The Key Takeaway
The peer-to-peer payment apps are revolutionizing the way we conduct transactions. Such money transfer apps have a bright future! Developing an eWallet App Like Venmo is an excellent example of how investing in creating payment apps can benefit your financial business. As people gain more trust in digital payment apps, they have begun to switch from cash payments.Apps that facilitate P2P payments allow individuals and companies to send money in real time over the Internet. It is uncanny how easy it is to make large payments. This sector will likely grow more as people embrace this technology. This sector has plenty of room for expansion and innovation, and many startups are developing innovative and radical ideas to move this industry forward.You've come this far, and you should know that reading this blog will help you understand the essentials of developing a payment application. The most essential step to develop an eWallet App like Venmo is to hire a dedicated eWallet app development company. Contact us now to receive premium development services from skilled developers with decades of experience.
1. What is the best way to start developing an eWallet-like Venmo app?
Start by learning the basics of mobile app creation, payment gateways, and security protocols. Consider partnering with an experienced developer to make the journey easier.
2. What are the features that Venmo needs to have?
Attention should be paid to user registration, linking of bank accounts or cards, fund transfers, transaction history, and notifications. Social integration and security measures, such as two-factor authentication, are also crucial.
3. How do I ensure that transactions and user data are secure?
Use SSL certificates and adhere to industry standards for security. Update your app regularly to fix vulnerabilities. Test thoroughly to find and fix any security vulnerabilities.
4. Which technologies should I use for the backend?
Opt for a reliable backend technology like Node.js or Ruby on Rails. Use a scalable database system, such as MySQL or MongoDB. Cloud services such as AWS or Firebase are a great way to support your backend.
5. What can I do to make my eWallet application stand out?
Give priority to a user-friendly, intuitive interface. Integrate seamlessly with other apps and services. Consider incorporating features such as QR code payments and in-app budgeting.