Have you ever come across the bearings wherein you just wrap up your dinner or get out of a taxi and realize you forgot your wallet? What then? Washing the plates to pay your bill....embarrassing right? Calling up a friend or relative to drive from way long just to pay your bill?
Mobile app development company noticed this issue and came up with payment application. Bill payment can now be done through mobile, how eased up payment process have become. P2P (Peer to peer) is entrenched as a strong payment platform where carrying wallet is no more mandatory, the mobile app is new wallet to lug along with. In the US, more than 200 retailers and banks offer mobile payment service. Even the cab drivers now accept mobile cash. A single click of your phone and you are done with the payment. In this wallet-less economy, PayPal is a dominating player since last decade but now several other companies have barged in the industry and made this brain wave more ubiquitous.
P2P is a rapid way to transfer money from one device to another either through an email address or through the phone number or by online banking. The majority of the P2P system need an app for going cashless and very few allows to transfer money without it. You can link your P2P payment app to your bank account and transfer money to your friends and family.
What’s the urge of P2P payment apps?
You can pay your petrol expense, your dinner bill, your movie ticket payment through the most common sources of payment say the debit card and credit card but what do you do if you want to split the bill with your friend? You can’t pay him through credit card or debit card. P2P payment app will act like a middle man. Funds will be transferred from the bank account to your app and then it will be transferred to your friend through it. This payment method is more rampant with the young users who are totally techy and not much concerned about the danger of sharing their financial secrets with third party software. And hence, it is said that the next generation is not going to know what paper money is.
P2P payment application is majorly bifurcated in two app groups:
1)Payment apps launched by massive companies like Paypal.me by Paypal or Google wallet by Google or SquareCash by square.
2)Payment app which is the outcome of product startup or sovereign payment company. These are those apps which conjoin with banks or desegregate payment with the social platforms like ClearXchange or Circle or PopMoney.
Read More: How can mobile applications leverage your business in 2017?
There is a huge room for startup companies and there don’t lie the fear of being eaten up. Startups initiate on their own but then they can be a part of the big players on the account of merger or acquisition. If it's hard to believe, let me give a real example. In the year 2102, Venmo was initially bought by Braintree which later became the part of Paypal when Braintree was acquired by Paypal a year later. By doing so, you don’t have to compete with the master blaster of the payment mobile apps instead, you can shake your hands with them and work in a parallel manner.
Hurdles for P2P mobile payment app
1)Traditional payment method
Cash and cheque for payment have reduced drastically but not vanished from the market. When any transaction with huge numbers come across, the preferable method of payment is always cheque and that’s where mobile payment apps are beaten. Mobile application development services strive hard to make people believe about safety, convenience, and reliability of mobile apps for payment but it will take some time to change the orthodox mindset of people.
2)Security of the payment details
The bank account details have to be linked with that of mobile app and that’s where the biggest concern of people stands. To make people put their faith in payment applications, they declared that there is bank level security along with the data encryption for protecting users against unauthorized transactions and keeping their personal details highly personal.