How to Build a P2P Payment App: Features, Steps, and Cost

How to Build a P2P Payment App: Features, Steps, and Cost

08 December 2022 • 19 min read

P2P payment apps are gaining momentum every year all over the world. Consumers and businesses sent nearly half a trillion dollars with Zelle in 2021. Sent payment values increased by 59%, while transaction volumes increased by 49%. Well, before you build a payment processing app, you need to decide on one of these types of platforms.

It's hard for people to imagine life without sending money from card to card, paying for purchases in a couple of clicks online. Users quickly got used to innovations like PayPal or Venmo because they effectively addressed their needs.

In addition, P2P payment apps influence the fintech landscape, and we will tell you about it in detail.

If you are wondering how to create a money transfer app, this article will also learn the key features of p2p payment solutions and what stages the p2p payment app development process includes. We will also break down how many resources (money and time) are needed to create a custom peer-to-peer payment app.

How Peer-to-Peer Payments Affect Business?

Let’s look into how P2P (person-to-person) payment apps affect different businesses and their processes.


We can divide entrepreneurs into three categories in the P2P Payments market:

  1. Startuppers that want to build money transfer app from scratch. You saw an opportunity to offer a unique solution to revolutionize the market. Therefore, you seek to oust your future competitors.
  2. Owners of financial software that need to add payment services to their solutions. You have found ready-made P2P payment solutions (e.g., Zelle) to use in your financial app. Or you want to add an extra payment method (Google Pay, Apple Pay) to increase your competitiveness.
  3. Creators of social media platforms. You have developed a popular app, but you also notice that your competitors (Facebook, Messenger, Instagram, WhatsApp) have introduced new features: money transfer and real-time payments. Therefore, you try to keep up with the big players and integrate similar solutions into your products.

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According to Statista, in the second quarter of 2021, Venmo's total payment volume grew by 57 percent year on year. This figure is impressive, but there is one important point. You need to make sure that your P2P payment app can handle the increase in payments and active users. In addition, you can plan to expand your product to other regions of the world. But be that as it may, this is a good reason to build a P2P payment app.

Source: Statista

Business Growth

We also recommend that you note that the number of smartphone users worldwide surpasses 6 billion and is forecast to grow by several hundred million in the next few years. China, India, and the United States have the highest number of smartphone users. Therefore, if you want to create a fast-growing business in the P2P Payments market, you should focus on these regions as a potential target audience.

Number of smartphone users from 2016 to 2021

Source: Statista

As you can see, the P2P payment market can influence businesses in many ways.

Read more about fintech app trends.

Types of P2P Payment Apps Business Models

If you are going to create a P2P payment app, you need to know the types of this product. But first, you need to decide on a business model. Then you will understand what type of app is right for you. Therefore, we are going to tell you about the different options.

Standalone vendors

Users link their bank cards in the app. They can create a digital wallet to store electronic money, make P2P payments, send and receive money. Besides, people can keep their money in their wallets if they don’t want to withdraw it to a banking account yet.

PayPal is one of the most popular apps in this direction that offers payment services and solutions for both businesses and personal consumers. Users can shop, transfer money, and make payments. Moreover, PayPal helps businesses scale into new markets, find active buyers, and increase conversion across channels. According to Statista, 416 million people used this product in the 3rd quarter of 2021.

Number of Paypal's total users accounts

Source: Statista

Moreover, PayPal's total payment value increases almost every quarter. Yes, in some quarters, TPV decreased relative to the previous period, but this figure increased rapidly. But as we can see, the company is not going to slow down.

Paypal's total payment value 2021

Source: Statista

Examples: PayPal, Venmo. Actually, this is one of the key types that you should pay attention to when you build a money transfer app.

Mobile OS Centric Services

Users install similar apps on smartphones and add their bank cards there. Then they can pay (smartphones, wristbands, smartwatches) in stores where points of sale (PoS) are equipped with NFC technology.

People can buy goods with Apple Pay in online stores, and they no longer need to take a plastic bank card to the supermarket. This app protects users' personal data when they make purchases. Besides, businesses increase their revenue by adding Apple Pay as an additional payment method. And Apple Pay is built right into iPhone, Apple Watch, Mac, and iPad.

Examples: Google Pay, Apple Pay, Samsung Pay.

Bank-centric services

Banks are one of the third parties in the execution of transactions. Most banks create their P2P payment systems to make services more accessible and convenient. People can send money and pay for various services (utilities, mobile bills, fines, insurance, and more).

Besides, users in the US can send and receive money in banking apps using Zelle if both the recipient's and sender's banks have integrated Zelle into their apps. Such transfers are carried out in minutes. Consequently, banks in the US are interested in using Zelle in their solutions.

Examples: Zelle, Popmoney.

Quick and seamless access to secure banking infrastructure

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Quick and seamless access to secure banking infrastructure

Social Media Platforms

People can send money on social networks to chat partners. In addition, some solutions offer advanced features. For example, WeChat users can pay for goods and services online, pay bills, buy tickets, call and pay for a cab, book hotels, and much more.

People can use Facebook Pay in some countries. Users add their payment information to Facebook, Messenger, Instagram, or WhatsApp. They can send money to friends, buy goods, and donate funds. If you have previously created a social networking service, you could integrate a similar solution.

Examples: Snapchat, WeChat, Facebook, Messenger, Instagram, WhatsApp.

Must-have Features to Make a P2P Payment App

So, you have decided on the type of product. We will share with you the list of P2P payment app MVP features. And you will know what you need to add to your project.

1. Digital Wallet (E-Wallet)

It would help if you created a place in the app where users can store their bank cards. They can also store their funds in a digital wallet. Therefore, the presence of this feature in your project is a very important step. And we recommend that you pay special attention to this feature before starting development.

2. Transfer to a Bank Account

transfer to a bank account

Users want to easily send money from card to card. But they also want to send their funds to bank accounts. The security of money P2P transactions is also important for senders and recipients.

3. Real-Time Payments

People buy tons of different products every day. They pay bills online on their smartphone anywhere in the world. Users appreciate when they can buy with as few clicks as possible. Therefore, this feature also occupies a crucial place in your future product.

4. Transaction History

Transaction history

Each of us at least once was in a situation where it was urgent to find a specific payment. We immediately recall the various P2P payment apps where it's easy to get lost in the history of operations. But you may admit that companies often make this function not always convenient and understandable. Therefore, you can take into account competitors' mistakes and offer the best option in this direction.

5. Send Bills and Invoices

Some users may use P2Pmoney transfers to generate invoices. So, this feature can engage business representatives for your innovative solution.

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6. Unique User ID/OTP

This feature enhances the security of your product. For example, the user must enter an OTP (One-time password) to enter apps and make a payment. Moreover, your developers can add the ability to perform such actions using fingerprints.

7. Currency Conversion

Currency conversion

Yes, people can go to currency exchange offices, but they can do the same thing online. The second option is much safer and faster. Users can exchange currency between their cards in different currencies.

8. Push Notifications

Users appreciate when they can receive a notification in the app. For example, someone is looking forward to receiving money in their account. And the other person is waiting for an invoice from a business partner.

9. Customer Support And Chatbots

Customer support makes your product more attractive in the market. Users feel cared for by asking about unexpected issues in the app and transaction status or anything else. Also, if you want to add your project to Google Play or the App Store, customer support can be a deciding factor. You can also use chatbots in your P2P payment app.

10.Cryptocurrency Payments

Cryptocurrency payments

Cryptocurrency is becoming more popular every year. And some companies in the market are allowed to pay for their products and services using cryptocurrency. Hence, you can create a modern product with this feature.

11. Admin Panel

The admin panel is what you need to manage the app. For example, you want to add a new feature or remove an existing one and much more.

Steps to Build a P2P Payment App

So now you know the list of key features for your future p2p app but you are still wondering how to make a p2p payment app. Let’s turn to the steps of creating a money transfer app.

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1. Choose the Optimal Development Technology

We believe that the right technology and a successful P2P payment app go hand in hand. Therefore, you need to analyze fintech trends and innovations and consider which ones will suit your product:

  • NFC
  • Biometrics ID
  • Real-time payments
  • Unified platforms
  • Artificial intelligence
  • Blockchain

It is worth mentioning separately the choice of blockchain. Blockchain peer-to-peer payment solutions ensure a lower transaction cost, makes payments more transparent and faster, and reduce the risks of transfers. We also recommend you choose one of the most popular web tech stacks for online money transfer app development.

LAMP stack

  • Linux (the environment OS)
  • Apache (the HTTP server)
  • MySQL (the database)
  • PHP (the server-side programming language)


  • Python (the server-side programming language)
  • Django (the open-source framework for backend web applications based on Python)
  • Apache (the webserver)
  • MySQL (the database)

MEAN stack

  • MongoDB (the schemaless NoSQL database system)
  • Express JS (the framework used to build web applications in Node)
  • AngularJS (the JavaScript framework developed by Google)
  • Node.js (the server-side JavaScript execution environment)

Therefore, when answering the question of how to build a money transfer website, do not forget to choose just such a stack of technologies. And you should also take into account that peer-to-peer app development differs depending on the platform:

  • iOS (Objective-C and Swift)
  • Android (Java and Kotlin)
  • Cross-platform (React Native, Xamarin, Flutter money transfer app)

2. Create User-Friendly Interface

Users appreciate simple and convenient apps for solving their problems. P2P money transfers and payments must be made with as few clicks as possible. People want to quickly navigate the app and not waste time on additional instructions.

Interface design should be both visually appealing and intuitive to users. In addition, the design team creates several prototypes, from low-fidelity to high-fidelity.

3. Develop an MVP of Your P2P Solution

Next, we recommend that you decide on the next actions of an online P2P payment app development. You can create a full version of the app or MVP right away. Also, it would help if you considered what version of the digital money transfer app you want to create: web, mobile, or both.

Our experienced team believes that it is worth starting with developing the mobile version of the MVP first. Your product will have all the basic functionality, but you will spend less money and time.

In addition, you will be able to test your app on users much earlier and get feedback. If your solution is successful, the developers finalize the MVP to the full version of the product.

4. Consider Security Issues and Compliances

Besides, users pay special attention to the app's security. If they notice any problem in this direction, they can choose in favor of a competitor. Consequently, you should choose the best option to hide user accounts or card data.

Each country or economic grouping has its own rules and regulations that your app must comply with. The development team reviews compliance regulations such as PCI-DSS, data encryption, and two-factor authentication. Besides, we recommend that you decide here again with the target region.

Below you can see a couple of examples of authorities with which you need to resolve legal issues by region:

  • The UK – Financial Conduct Authority.
  • US – Depends on the state
  • European Union – Directive (EU) 2015/2366 + GDPR compliant
  • Korea – FinTech Center under the Financial Services Commission (FSC)
  • China – FinTech Committee under the People’s Bank of China (PBOC)
  • Australia – Innovation Hub by the Australian Securities and Investments Commission (ASIC)

5. Integrate Third-Party API and Ready-Made Solutions

Your development team can use ready-made solution APIs or create your own. We believe that the first option is the best, reducing the time it takes to build your product. But you should be aware that some APIs may only work in certain regions.

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6. Test Everything

You are already at the final stage and have an almost finished app. Now QA engineers have to do various tests. They help you fix bugs before launching the product. Also, you can create a user group for beta testing of your app and its P2P payment gateway.

P2P Payment App Development and Designing Challenges

So, now you know how to make a peer-to-peer payment app. Here we will break down the challenges you will face during P2P payment app development. Your team should test your app at various stages of the project. Then you will be ready to launch your product on time to the market.

Security challenges

It would help if you made your product safe. For example, users can log into the app after two-factor authentication. In addition, developers can add the “Limits” feature, and your customers can set up restrictions on various operations. Users specify the maximum amount per day they can send in the app.

PCI DSS compliance

We also recommend paying attention to the information security standard - The Payment Card Industry Data Security Standard (PCI DSS). It includes:

  • Update every security policies
  • Constant testing and controlling of network
  • Build strong access control standards
  • Vulnerability management system
  • Create secure network and system

Regional constraints and cross-border payments

It is vital to check for regional constraints to your product. This challenge can be critical to the success of your app, as users can send and receive money from all over the world. And they want their money transfers to be fast.

Disputes settlement

You may consider how your users can resolve disputes. For example, a person sent some money debited from their account. But the recipient did not receive funds on his card. And this situation can arise for various reasons.

Currency conversion

Conversion is an important element of a successful app, as users can exchange different world currencies. In addition, people can buy goods in other countries, even without having the desired currency on the card.

Fraud detection

If you are going to create a P2P payment service, you need to build strong security layers. The hackers broke through the app's first line of defense, but you got notified and got it fixed in no time. And your user data is safe. Moreover, you can integrate new blockchain technologies into your app.

Synchronization of financial data

Developers also set up consistency across systems:

  • Synchronization of financial data between two or more devices
  • Automatic update of changes between these devices

How Much Does It Cost to Create a Custom P2P Payment App?

We know that every business can come up with a unique idea. Therefore, the project creators have their own goals, requirements, and needs. P2P app development costs and timeline may depend on various factors such as launch date, number of features, budget size, the geographic location of the software company, and much more. Below you will see the approximate amounts and time for each stage of development.

1. Estimation & Research

Time: from 160 hours

Cost: $6 400

Our development team gets all the project details from you. We can also help you validate your app idea. Besides, experts research the P2P Payment App market and determine your competitive advantage. Then we return to you with feedback, discuss your project again and proceed to the next stage.

2. Development

Time: from 350 hours

Cost: $14 000

Our designers create your app's interface: prototypes of different levels. They think through every button in the product. Besides, back-end developers create the back end of the product: deal with security and compliance issues, and link databases to the data flow. Our front-end developers then combine the previously created prototypes and code to create the app's final version (visual).

3. Testing & Launch

Time: from 120 hours

Cost: $4 800

Testing is also included in the cost of starting a P2P payment app. At this stage, our QA Engineers and money transfer app developers closely cooperate to identify possible errors in the app. If the team finds bugs, they immediately fix them. We then help you get your app to market.

4. Support

Time: guaranteed period of 320 hours (40 days)

Cost: $12 800

Moreover, you can contact our team for ongoing support for your app. If you need to update your solution, we will set up a P2P money transfer app.






Estimation & Research

from 160 hours

$6 400



from 350 hours

$14 000


Testing & Launch

from 120 hours

$4 800



guaranteed period of 320 hours (40 days)

$12 800


950 hours (up to 5 month)

$38 000

How Can Softermii Help You Build a P2P Payment App Like Venmo?

P2P payment apps are gaining momentum every year. And now is a good time to get your share of the market. You understand the list of must-have features and main challenges. In addition, you learned the approximate time and cost of developing such a solution. Therefore, you can move from plan to action.

We at Softermii are experts in developing P2P payment solutions for various industries. Our developers have experience in creating a cryptocurrency exchanger (ExtoBit).

The task (challenge)

We needed to build highly efficient ways to synchronize data between multiple backend applications and protect the transferred information from malicious interference. Our team also faced marketing issues: creating a unique selling point to onboard future users.


Our developers have divided the backend into a number of isolated applications to ensure maximum security. We used the following technologies to develop the app

  • ASP.NET Core (the web framework for server-side)
  • MS SQL Server (the database)
  • Vanilla JS and React (the client-side)
  • Quartz and Hangfire (to achieve synchronized data exchange between applications)
  • TLS 1.2. (to secure of all data on the transfer level)

Our development team has involved transparent database encryption to ensure data safety at rest.


We have created a successful P2P app for money transfer for our client. Users have chosen it as the main go-to platform for their cryptocurrency exchange needs.

EXtoBit offers a wide range of available currency pairs, including BTC, BCC, ETC, XMR, LTC, ETH, DASH. This app also supports Visa/MasterCard deposits and withdrawals along with Qiwi.

P2P payment app

Softermii has a dedicated team that will help you develop a P2P payment app, select custom features, and successfully implement them. We can create both MVP and full versions of the product.

Contact us to develop a messaging app like PayPal or Venmo.

Frequently Asked Questions

What is the best tech stack for P2P apps?

First, you should decide what kind of app you create: web or mobile. LAMP, Python-Django, and MEAN are the best options for web app development. If you are interested in the mobile version, your choice of technologies will be based on the app type. Objective-C and Swift are good for iOS apps. Java and Kotlin are cool for Android apps.

Can Softermii Create a Money Transfer App Like Venmo?

Yes, If you need a Venmo clone app development, we can do it. Our team will study your project in detail and build a product that meets your requirements and market needs.

What is Softermii’s experience in fintech?

Our development team has been working with fintech apps for many years. Our specialists have experience with blockchain in various business projects. In addition, we created Extobit, which is a cryptocurrency exchanger of the new generation that allows hyper-quick transactions. We can also help owners of financial software add payment services to their products.

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