P2P (Peer-to-Peer) apps have been there for quite some time and are becoming increasingly popular. P2P apps like Venmo, Square Cash, Paypal, and Zelle are being loved by consumers for their speed, convenience, and security. The complex payment landscape has now been simplified with various peer-to-peer payment solutions that make transactions hassle-free.
It is estimated that the Global P2P Payment Market will reach a valuation of $4687.1 million by the end of 2028, growing at a CAGR of 10.3% during the forecast period. Talking about the fintech industry, peer-to-peer transactions has now become an ultimate game changer.
The finance industry is now driving its operation by speeding and boosting its efficiency with the help of various transformative technologies. As more and more people demand faster, better, and more convenient means of handling their money, financial institutions now need to stay ahead of the top trends and integrate digital solutions to make their operations easier. In this blog, we will discuss how P2P apps are transforming the fintech industry.
How P2P Apps can Revolutionize your Fintech Business?
P2P or person-to-person apps work by connecting the payee with the payer through an application or website. The user needs to enter the payee’s amount and email or phone number. The funds then get directly transferred from the payer’s bank account to the payee’s P2P account within a few minutes. Let’s check how P2P apps are transforming the fintech businesses.
1. Make Payments in Real-Time
The base or the primary feature of any P2P application is the facility of making quick payments in real-time. The user can make hassle-free and quick payments to someone they know or to any merchant/ vendor, or for bill payments. Giving the users ease and convenience of making payments, in itself, promotes the brand.
2. Meet Customer’s Expectations
Customer wants to have access to their money in real-time. And if your fintech business is offering this service, then you are actually meeting the real-time expectations of your customers. Not all P2P services are equal.
If you want to build a P2P app, then talk with your fintech application development partner and discuss what type of P2P app would suit your business needs.
In a few P2P apps, you need to have an interim account where it may look like money is available in real-time, but the fact is that the money is present inside the user’s app wallet, and they must transfer the money to their bank account to get access to the actual funds.
3. Increases user engagement
For any financial institution, digital engagement allows keeping their brand marketing at the forefront. For instance, whenever any member or customer of the financial institution gets engaged with the company’s own application or website, it boosts the chances of building loyalty and deepens the relationship.
Also, the customers can avail themselves the additional services and features. Customers who are digitally engaged tend to make more transactions, apply for loans or utilize revenue-producing products. This kind of interaction with the P2P app brings in more engagement.
4. Provides your Business a Competitive Edge
Financial institutions which have already gained a strong position in the market are now in a position to give tough competition to the other fintech organizations. Community fintech organizations competing in the market with the largest credit unions and banks have the benefit of leveraging the power of customer loyalty.
Providing P2P services further levels up the game and the playing field as you’re now offering the same level of service just as the other fintech giants.
5. Cost-Effective than Traditional Banking
P2P apps charge a very low amount of transaction fee as compared to traditional banking institutes. P2P apps not only give the financial institution a mode of bringing more users to the business but also it is one of the most cost-effective ways for the users themselves to send and receive money.
As per Statista, 42% of people in the US are using a direct money transfer service or making transactions with P2P apps, which indicates its popularity.
6. Improved Security
The peer-to-peer applications ensure complete security in making online transactions. With fintech app development services being on the rise, several financial organizations are now coming up with their own applications and are encrypting them with the best technologies which enable the users to make secure, safe, convenient, and faster payments with increased security. Also, finance mobile app development has enabled financial companies to detect and prevent fraud, leading to additional layers of security in transactions.
7. Funds can be Availed Immediately
Another biggest advantage of having a P2P payment app is that funds are available almost immediately after one makes the transaction. This is especially helpful for those people who need last-minute payments. As compared to traditional banking, the transfer of funds takes almost two working days However, with P2P payments, funds are readily available.
8. Operational Efficiency
The prominent reason why fintech application development is growing increasingly popular among financial entrepreneurs or business owners is that it is helping them to improvise their operational efficiencies. With fintech app solutions, it becomes easier for businesses to streamline their operations.
Since the P2P app helps businesses to get more efficient, by reducing the overall cost of operation. This thus results in lower prices and also offers a great value to your customers that will eventually increase your revenue numbers.
9. Greater Convenience
With P2P apps or fintech apps, businesses can now offer their customers great convenience and ease when it comes to making transactions. Customers now no longer need to stand in the long queue in banks and other financial institutions to receive or transfer funds. With mobile devices in their hand, they simply have access to all the information they require about their own financial accounts, including other products and service prices.
Also, currently, every small and local business has now started using P2P apps that have even made online transactions easier. Thus, we can say that P2P apps are now offering the best possible experience to their customers.
This is a major reason for their popularity among users and investors alike, as they are a part of the hottest fintech sectors for investment in 2022 and beyond.
10. Improved Usability and Functionality
Another last major benefit of P2P apps is that it offers user-friendly results. We all know how frustrating it is to utilize an application that does not work properly and constantly lags. With P2P apps, there is no chance of glitches or bugs, as these kinds of applications are end-to-end encrypted and are built with advanced technologies.
That is the reason why they offer great usability and functionality with amazing features, along with providing a great customer experience.
To Sum Up
In a digital era, it is no wonder that fintech or financial services are one of the fastest-growing sectors within the technology sphere. The fintech application development has now made our lives extremely easier with the advanced and hassle-free modes of transactions. With P2P apps, businesses have reduced operational costs, thus giving more time to invest in increasing customer engagement and sales opportunities.
If you also have a P2P or fintech app idea, get connected with a top fintech application development company today and create an impactful fintech application for your business.