How to Build a P2P Payment App Like Venmo?

1. Growing Popularity of Cashless Transactions

The global peer-to-peer (P2P) payment market is projected to reach $9.87 trillion by 2030, growing at a CAGR of 19.7% from 2022 to 2030. 

As digital payments gain popularity, customers are choosing rapid and simple money transfers over traditional banking methods. A banking app development company can help you capitalize on this growing demand by creating a secure and user-friendly P2P app. By investing in such a solution, you can benefit from the global shift toward a cashless society while offering seamless financial transactions to your users.

2. Expanding User Base of Millennials and Gen Z

Millennials and Gen Z dominate the user demographics for P2P apps, accounting for over 65% of digital payment users worldwide. 

This tech-savvy generation prioritizes convenience and social integration, which apps like Venmo offer. By purchasing a P2P app, you can connect with a digitally active audience seeking innovative solutions for routine transactions. 

3. Revenue Opportunities Through Diverse Monetization Models

The P2P payment industry offers a wide range of revenue-generating prospects; it’s not only about transactions. For instance, Venmo’s transaction fees alone brought in almost $900 million in 2023. 

With monetization techniques such as transaction fees, premium memberships, and merchant partnerships, your P2P application can generate a sizable profit while offering customers value-added services. 

Investing in P2P software such as Venmo places you at the forefront of a rapidly growing industry propelled by technological advancements and shifting consumer preferences.

Recommended: How to Build a FinTech App Like TurboTax for Easy Tax Filing and Management? 

Top 15 Features to Incorporate into P2P Payment App Like Venmo

Every entrepreneurs faces this dilemma – “Which features should be included in a P2P app like Venmo?” And it’s obvious that features determine the success of any mobile application. 

Below we’ve discussed must-have features for your P2P payment app, let’s learn:

1. BNPL Options

“The global Buy Now Pay Later market, valued at USD 39.65 billion in 2024, is projected to grow to USD 51.74 billion in 2025 and USD 435.20 billion by 2033.”

BNPL (Buy Now, Pay Later) feature is high in demand among users as it offers payment flexibility. This feature allows users to make purchases and pay in installments, often without interest for a specific period. 

Disclosed – Cost to Build a BNPL App Like Tamara

2. Social Integration

Adding social features enhances user engagement and makes transactions more personal. Allow users to link their social media accounts, share payment updates, split bills with friends, and view transaction histories in a feed-like format. This feature not only improves user experience but also encourages organic app growth through peer recommendations.

3. Digital Wallet (E-Wallet)

An integrated digital wallet streamlines transactions by allowing users to store funds directly within the app. Users can add money, link bank accounts, and manage their balance for quick payments. E-wallets also simplify refunds and reward redemptions, offering a seamless and user-friendly payment experience.

4. Unique User ID/OTP

Another feature you can consider to boost user experience and strong security is unique user ID/OTP. It is the most effective approach to enable transactions with security and also prevents unauthorized access. 

5. Currency Conversion

Offering currency conversion facilitate seamless international transactions. Integrate APIs for real-time currency rates and allow users to view transaction amounts in their preferred currency. Ultimately, this feature attracts global users and simplifies cross-border payments. 

6. Cryptocurrency Payments

Integrating advanced feature like cryptocurrency payments can be beneficial for your business. Cryptocurrency payment are the digital currency like Bitcoin or Ethereum allows users to make purchases online. Make sure to integrate cryptocurrency wallets and support major digital coins with blockchain transactions tracking. 

7. QR Card Payments

QR code payments make transactions fast, secure, and convenient. Users can scan a unique QR code generated by a merchant or peer to complete payments instantly. This feature is particularly useful for in-person transactions, enhancing usability in both retail and personal contexts.

8. Rewards/ Loyalty Programs

Incorporating rewards and loyalty programs encourages user retention by offering incentives for regular use. Users can earn points or cashback for completing transactions, referring friends, or reaching spending milestones. This gamified experience fosters loyalty and increases app engagement.

9. Security & Fraud Prevention

Strong security measures are vital for any P2P app. Features like multi-factor authentication, biometric login, and AI-driven fraud detection systems protect user data and prevent unauthorized transactions. Ensuring compliance with financial regulations builds user trust and keeps your app competitive.

10. Notifications & Alerts

Push notifications and alerts keep users informed about transactions, payment requests, offers, and security updates. Real-time updates ensure transparency and help users stay on top of their financial activities, making your app a reliable tool for managing payments.

11. Customer Support

Robust customer support is essential for building trust and ensuring user satisfaction. 

Integrate AI-powered chatbots for instant query resolution, alongside options for live chat or email support for more complex issues. 

A well-designed support system, accessible directly from the app, provides real-time assistance, enhances user experience, and minimizes frustration. With quick resolutions to user problems, your app can build a loyal and satisfied user base.

12. Social Features Integration

Social features like activity feeds, payment notes, and emojis make the app more interactive and user-friendly. These elements allow users to share updates, split bills socially, and personalize transactions, fostering a sense of community and boosting app engagement.

13. Request & Split Payments

Incorporating request & split payments will allow users to split bills right in the app. It simplifies the process of group transactions like splitting bills or rent. This is a crucial feature of apps like Venmo so ensure that you at least consider adding it to your payment app. 

Hire top Android or iPhone payment app developers to integrate advanced P2P Payment app features.

14. Real-Time Payments

Integrating real-time payments in P2P payment app like Venmo or Zelle enables instant transfers in a matter of seconds. This feature helps to eliminate delays and enhances user satisfaction. 

15. P2P Transfer of Funds

You can integrate P2P financial transactions feature in your application like Venmo. It helps to make fund transfers more practical and convenient. 

With this feature, users can easily send money directly to other users without intermediaries. It helps to simplify transactions and minimize transfer costs. 

Build a P2P Payment App Like Venmo: Step-by-Step Process

Dive into development process of P2P payment app like Venmo. Let’s understand how the overall process works:

Step 1: Conduct Market Research

Conducting market research is the primary foundation of any successful business. Here, you must focus on identifying your target audience, understanding their preferences, and analyzing competitors to pinpoint market gaps. 

Make sure to research the latest trends, user behavior, and preferred payment methods, offering insights that meet user demands effectively. 

Additionally, understanding regulatory requirements in your target regions ensures compliance with legal standards, setting the stage for a smooth development process.

Step 2: Define Features & Functionality

The next step is to define the core and advanced features your app will include.  It will assess the effectiveness of your P2P payment app. 

For a functional app, you must integrate core features such as user registration, instant money transfers, and digital wallets. If you want to set your business ahead from competitors – you must incorporate advanced features like BNPL options, cryptocurrency payments, and AI-driven fraud prevention. 

Making a prioritized feature list helps you maintain realistic development timeframes and stay focused on providing value to users.

Read More: How to Build a Fintech App like STC Pay?

Step 3: UI UX Design

Now we’ve reached the third stage – designing your P2P payment application. 

Create an intuitive, accessible, and visually appealing UI UX design. It will help users navigate through the app effortlessly. A user-friendly interface with clear layouts, seamless transitions, and consistent branding makes the app engaging and trustworthy. 

During this stage, wireframing and prototyping are helpful tools for testing and improving the design before full-scale development begins. 

Step 4: Development Phase

This is the most critical phase, when your idea becomes a reality. Building the app’s frontend and backend, as well as integrating third-party APIs, are the main goals of the development stage. 

Select a scalable backend framework, such as Python or Node.js, to manage transactions effectively. Cross-platform compatibility for the frontend is ensured by tools like React Native or Flutter, which let the app run smoothly on both iOS and Android. 

A strong and secure app infrastructure is ensured by integrating payment gateways, notification systems, and security measures, including encryption and multi-factor authentication. 

Step 5: Testing & Launching

To ensure it works perfectly, the software must undergo extensive testing before release. Testing includes checking for bugs, evaluating performance under high loads, and verifying the app’s compatibility across devices and operating systems.

Usability testing ensures that users find the app easy to use and intuitive, while security testing identifies vulnerabilities and confirms the robustness of your security measures. 

After successful testing, the app is ready for deployment. Launch it on major platforms like the App Store and Google Play, ensuring it complies with their guidelines.

How Do P2P Payment Apps Make Money?

Building a peer-to-peer payment app is not just about convenience for users—it’s also a highly profitable business model. Successful apps like PayPal, Venmo, and Cash App generate millions in revenue every year through multiple monetization strategies. Here’s how to make money from payment apps:

1. Transaction Fees

The most common revenue stream comes from charging a small fee on transactions. For example:

• Instant transfers to bank accounts usually carry a fee (e.g., 1%–3%).

• International transfers often include currency conversion charges.
  This model works because users are willing to pay for faster, cross-border, or high-value payments.

2. Merchant Payments & Business Integrations

P2P apps often partner with businesses to process customer payments. Merchants pay a small percentage fee (usually 2–3%) on each transaction. This turns the app into more than just a money transfer app—it becomes a digital payment gateway for businesses.

3. In-App Wallet Balances (Float Revenue)

When users keep money in the app’s digital wallet, companies can invest these idle funds or earn interest until the user withdraws. This is known as float revenue, and it’s a significant source of income for mobile wallet apps.

4. Premium Features & Subscriptions

Some apps offer additional features for a fee, such as:

• Advanced security options

• Multi-currency support

• Priority customer service

• Business accounts for invoicing and bulk transfers
  This freemium model attracts a wide audience while generating profits from power users.

5. Cross-Selling Financial Services

Modern P2P payment apps are evolving into super apps by offering:

• Personal loans

• Credit cards

• Stock and crypto trading

• Buy Now, Pay Later (BNPL) services

For example, Cash App makes significant revenue from its stock and Bitcoin trading features. This diversification helps apps maximize user lifetime value (LTV).

6. Advertisements & Partnerships

Some apps also generate revenue by promoting partner services, cashback offers, or embedded ads. Since payment apps have rich user spending data, they can personalize ads, which advertisers are willing to pay a premium for.

How Much Does it Cost to Build a P2P Payment App Like Venmo?

When planning for app development, every entrepreneur faces the pressing question – “What exactly is the development cost of P2P payment app like Venmo?” 

While there’s no one-size-fits-all answer, the cost largely depends on factors such as project complexity, UX/UI design, tech stack, features, and more. However, the estimated cost to build a P2P payment app like Venmo with basic features ranges from $15,000 to $60,000. 

On the other hand, if you want to build a P2P payment app like Venmo with advanced features, it will range from $60,000 to $1,20,000 or above. 

Pro Tip: Start with MVP Development Approach 

If you’re looking for an cost-effective option to build P2P payment app like Venmo –  you can opt for MVP (Minimum Viable Product) approach.

Here’s how MVP benefits you:

1. Market Validation: Test your app with real users and gain valuable feedback.
2. Cost Efficiency: Focus on the must-have features initially to minimize upfront investment.
3. Attract Investors: Once your app gains traction and builds a user base, secure funding to develop a fully-featured, advanced application.

With MVP approach, you can save costs and create a solid foundation for your app’s future growth and scalability.

Bonus Read: iOS App Development Cost: Full Guide

Build Your Robust P2P Payment App Like Venmo With Apptunix

Partner with Apptunix, a leading FinTech app development company as we specialize in developing customized, robust P2P payment solutions tailored to your unique business needs. With years of experience in app development, we ensure that your app is secure, scalable, and optimized for user engagement. 

Whether you’re looking to implement advanced features like BNPL, cryptocurrency payments, or instant money transfers, Apptunix has the skills and resources to make it happen.

Why Choose Apptunix for Your P2P App?

• Expert Development Team: Experienced in creating high-performing and secure payment apps.
• Customized Solutions: Tailored features to meet your business goals.
• Scalable Architecture: Ready to grow with your business.
• End-to-End Support: From ideation to deployment and post-launch support.
• Fast Time-to-Market: Efficient development to launch your app quickly and successfully.

Partner with Apptunix to bring your P2P payment app vision to life!