The advent of peer-to-peer mobile payment apps has created a new world of cashless, card-free, and pay-contactless transactions. Their cross-industry applications and use cases range from splitting bills, making remittances, and booking tickets to managing daily expenditures.
Financial applications are set to transform the way we make online payments with the availability of digital wallets, cryptocurrencies, m-commerce apps, and peer-to-peer payment apps. Several next-gen peer-to-peer mobile payment apps now support card-less, cash-less, and in some cases, bank-less transactions.
So let’s have a look around at mobile peer-to-peer payments systems that are proving to be a revolution on a global scale.
A peer-to-peer mobile payment application?
At its core, a peer-to-peer (person-to-person) payment app is a mobile application that enables users to perform electronic money transfers. P2P mobile payment apps have a range of use cases that include:
- Making a payment to the merchant/landlord in the installment basis
- Making a payment to cab services, including discount calculation
- Paying a merchant/landlord in installments
- Making a friend-to-friend borrowing request
- Splitting dinner bills with friends
- Making remittances to people living in other countries
- Making payments for utilities, internet, and other services
P2P payments are not only limited to geographical locations, but i.e users can also perform cross-border transactions.
Business applications designed to serve this purpose
P2P FX (Foreign Exchange)
Person to person foreign currency exchange applications aim to bring users together worldwide. They eliminate intermediaries, such as banks, and brokers, which results in up to 90 percent cost savings on international exchange and transfer fees.
P2P Lending Platforms
P2P lending platforms enable users to avail of repayable microloans at lower interest rates than banks. These platforms are more beneficial for investors looking to monetize their funds in fragments.
P2P Cross-border Money Payment Application
They offer cheaper transaction provisions as compared to their traditional counterparts. Now, technologies like smart contacts make possible to make secure payments via a smartphone app.
Business models of p2p payment applications
Peer to peer mobile payment solutions vary as per the requirement of the work areas, such as airtime transfers, travel and ticketing, and merchandise and coupons. Their industry applications include fields like retail, travel and tourism, hospitality, logistics, energy, utilities, etc.
Companies looking to develop a mobile-based peer-to-peer money transfer system can consider developing one of the four types of business applications.
Several banks consider deploying mobile payment applications to customers. It ensures that merchants have the necessary PoS (Point-of-Sale) acceptance provision.
Standalone Financial Solutions
These applications provide online P2P/C2B payments with or without checking accounts and debit/credit cards. Generally, these apps come with an integrated wallet. Also, take a look at cryptocurrency wallet development services.