Today nobody questions the fact that advanced mobile payment programs are designed to simplify our lives. The more we as a society evolve and civilize, the more we require such software that turns to be pretty irreplaceable. Let’s study this issue in depth.
Reasons for mobile payment apps’ popularity
Bank of America has carried out research which shows that the world’s younger generation cannot picture their lives without p2p payment solutions. Those online systems are claimed to be applied by over 64% of people responded. Speaking about individuals of other ages, around 46% of respondents want to try such digital financial platforms at the earliest opportunity.
As to people who already take advantage of peer-to-peer payment software, 70% state that they use the programs in question due to their time-saving and convenience. And, about 49% acknowledge peer influence to be the key cause. Moreover, 15% of respondents confess they simply prefer to avoid using cash.
Regarding the US market, over the last years, the overall value of P2P financial operations has increased by 54% reaching $120 billion. Specialists are sure that such an already-impressive figure shall only double by the end of 2022.
That’s the reason why we have seen an increased demand for the development of the mentioned services compared to other financial institutions. Besides, we can observe the intensification of geographic coverage racing, and the efforts to force competitors out of the market turn out to be a usual case nowadays. Each business is struggling to build a payment app and make it one of the greatest person-to-person payment resources. By the way, read more about the technologies to design any kind of resources you need.
Why does this happen?
It’s pretty clear. Today’s economy is gradually transforming into a digital format, thus, cash is becoming the past. Additionally, these days individuals have more reasons (say, COVID-19) and possibilities to carry out remote online purchases that also contribute to the switch to no-cash transactions.
Therefore, companies of any kind are working on the implementation of diverse digital payment solutions, which include p2p ones as well, since they’re extremely appropriate for small business organizations. Let’s be honest: in small places, like, local grocery stores, sellers usually don’t have terminals to perform cashless transactions. In those cases, peer-to-peer financial systems will serve as a perfect way out to send money straight to the bank cards.
As to the service segment, p2p operations are far from being in the last place. Statistically, the total share of cashless payments in cafes and restaurants is 68%, and that’s just the beginning.
P2P money activities are growing in strength in various markets, for instance, in streamings, real estate rentals, janitorial services, etc.
And now, when you’re well aware of basic trends in the world of mobile payments, it’s high time to explore the main point on the subject.
Benefits of creating peer-to-peer mobile payment platforms
So, why would you as a user go for the given programs, and why design that software if you’re a potential application owner? Let’s clarify those issues.
It’s about the monetization tools since p2p solutions help to get the additional income which is always a great thing. We’ll describe the most common and essential approaches in the due course of the article.
Client relationship enhancement
One of the key advantages of making a P2P system is the possibility to significantly strengthen customer relationships.
When businesses manage to provide their audience with an extra payment option, these companies can considerably improve their reputation. Clients do prefer peer-to-peer platforms and actually respect organizations that offer such opportunities.
We’re sure you still remember those days when it was taking ages to send money to a particular person. It was mandatory to personally go to the bank and wait in endless queues. Actually, that process used to include multiple boring activities you couldn’t escape from.
With the appearance of modern digital software, the procedures turned out to be more simple, however, they were still kind of complicated, as lots of data were required to be entered and multiple fields had to be filled in. P2P money transfer programs have managed to solve all those issues.
Resources in question are to save time owning to such advantages, as:
- they’re pretty easy to be applied, cos only several simple actions are needed to conduct the financial operation;
- these applications ensure the high speed of transactions performed;
- they provide convenient UI allowing to interact with all users of the same resource;
- the given services are characterized by great availability.
We shall discover the last aspect in more detail.
Anyone at any time can take advantage of p2p resources since:
- mentioned apps aren’t linked to any region (only the Internet connection is required);
- time factors don’t influence them (solutions operate around-the-clock);
- the given systems are supported by multiple platforms (any gadget could be used to conduct transactions).
Minimum details on recipients needed
Users will need to know just a minimum of data on a person to send money to. This nuance serves to simplify the whole process and to speed it up.
Customers appreciate p2p money transfer software since it sets reduced charges in comparison with other transaction mediators. Meaning, if you decide to design a customer peer-to-peer payment program, you’ll offer your audience the possibility to save up a bit.
All person-to-person payment applications are deemed to be pretty robust and safe, because the high level of security is guaranteed by the fact that users have to be involved in the 3D secure system. More importantly, an organization that provides 3D secure services has to be PCI DSS certified.
One more point we are to discuss this time is how peer-to-peer money transfer resources manage to make a profit.
Monetization models of P2P payment apps
All the above-mentioned benefits are quite valuable, however, the extra income will never hurt. Let’s explore the sources to drive revenue:
- fees for providing certain services, meaning, the possibility to transfer money online;
- in-application advertising by attracting people who’d like to place their ads at your platform;
- paid subscriptions. You could provide mandatory subscriptions when the audience after the cost-free trials have to pay a specific fee to keep enjoying the system. And, there’s a freemium option when users can apply the solution for free, or they could choose to pay in order to take advantage of more extended functions with no advertisements.
The secret here is to design the software wisely. In such a case, you’ll easily manage to return all your investments, as well as to discover a steady revenue stream.