Generation Alpha will never understand the struggle and pain of standing in a bank’s long queue for a money transfer. Because digital solutions have taken over the traditional bank bureaucracy. Today it is not surprising that the global digital finance market is on the rise with a wide variety of apps for instance personal finance apps, online banking apps, and money transfer apps. In the realm of digital trends, the spotlight today falls on the last one in this blog. If you are interested to know more about money transfer apps, understand their development specifics. Want to get a step-by-step instruction on how to build a money transfer app, then this guide is right for you.
Understanding the Statistics of Money Transfer Apps
- As per Forbes statistics, 53% of people use online transactions rather than traditional payment methods.
- As per Statista reports, there are approximately 2.8 billion digital wallet apps through mobile currently.
- It is stated that the total number of P2P transactions is expected to reach US $1.4 trillion in 2023 and nearly US $2.3 trillion by 2026.
- A CAGR of 14.66% is expected in 2023–2027.
What is a Money Transfer App?
Money transfer apps are instant banking or online banking facilities where you don’t need a middleman. If you search in detail then you will find the majority of P2P apps consist of a digital wallet. It enables consumers to deposit funds that can be used for payments or international transfers.
Whatever the shape or size of the money transfer app, the result will be the same such as convenience, flexibility, security, and transparent fees. Nowadays you can find many added features in a digital wallet app like bill payments, expense trackers, insurance payments, and many more like this.
The best thing about the money transfer app is that it works independently from banks. So you can avoid the complications and high costs that arise from transferring money between bank accounts in different countries.
Types of Money Transfer Apps
Mobile OS systems
The most widely used P2P services are Apply Pay and Android Pay are the best examples of Mobile OS systems. This app software is increasing its popularity due to its contactless payment service for purchases with NFC technology support. However, there is only one drawback here, Android and Apple device users can only make money transfers to users of the same system.
- Independent Services
PayPal is the greatest example of independent services. This app allows for card payment with the help of electronic wallets whereby P2P payments are made. The only drawback is all independent services have minimum support for Visa and MasterCard types.
Online Banking Services
Every bank nowadays leaves the traditional ways of jostling for space in the digital spare. Banks are competing with each other by keeping abreast of digital trends. Zelle, and Dwolla are a few examples of bank-centric apps.
Why Should You Develop a Money Transfer App?
Before talking about “I Want to Create a Money Transfer App”, the first thing should come to your mind “Why should you develop a money transfer app?”.
There are various reasons to answer this question. The prominent reasons could be that it is beneficial for users, it will attract a wider target audience, provides lower transaction costs, 24/7 availability, greater transaction speed and frequency, record keeping and many more. Let’s discuss in detail:
- Lower Transaction Fees
Banks mostly charge a transaction fee from users for transferring money from one account to another. These fees might cost in between 0% to 5% depending on the transaction type.
A money transfer app allows users to transfer money from one account to another without charging a single penny. This is the reason people are turning towards digital wallet apps.
- 27X&X365
When you visit banks to transfer money, you need to do it in fixed hours because every bank has set a particular time for their customers. This fixed time duration generates difficulties for customers like number of users, long processing times, frequent server issues and many more in a certain time period.
By using a money transfer app users can transfer money from one account to another at any instance without waiting in long queues, and facing other problems that hamper the transactions.
- Transaction Speed
In a traditional way of transfering money through the bank from one account to another account will take time. It may take 2 to 3 hours for the transaction to be processed. It also takes a few hours for the validation of the transactions.
Whereas in online money transfer service through apps you can transfer money instantly from one account to another account. In emergency cases money transfer apps are becoming saviour for many.
- Record Keeping
Money transfer apps are best in record keeping services. Users of a money transfer app may easily keep track of how much money they have spent and how many transactions they have made with that app.
Get proof of transactions through digital receipts and confirmation notifications. Even through apps you can search filters, and categorization features enable quick and organised access to specific details. The integration with financial software streamlines record-keeping operations, and the apps’ mobile accessibility ensures that users can quickly monitor their transaction history at all times.
- Integration with Other Services
A robust money transfer app integrates various other services to make it lucrative for users. The integrated services are expense tracking, finance management, bank account integration, cryptocurrency integration, payment and checkout services, cross-border services and many more.
Integrating a money transfer app with various financial services or banks will attract a wider target audience as it will help them to get a one stop solution for all their banking and financial services.
Must Have Features For Your Money Transfer App
When you are planning to build your own money transfer app, must keep in mind to make it secure, safe and reliable online money transfer solution with wide range of features like:
- E-Wallets
E-wallets allow you to store electronic money and make contactless payments.Because the app stores your bank card data, there is no need to create a new bank account like paypal’s mobile wallet app.
- Bill Payment
Nowadays businesses are to remain in competition giving users online payment features at any time and from anywhere in the world. Take examples of money managing apps like Mint and Prism. They help in tracking your bills and give easy payment services through your smartphone or any other mobile device.
- Payment Statistics
Users can see their transactions according to volume, status, country and receiver to manage their finances. Here the result is a seamless experience for users. Users can interact with their financial statistics easily.
- Online ID Verification
Online ID verification protects users from online fraud. Because users want to keep their data and sensitive information safe from enterprising cybercriminals.
- Transaction Notifications
Any activity occurs on your account, a popup or push notification will come on screen. This feature is extremely significant since it promotes consumer loyalty.
- Currency Exchange & International Transfers
When the international money transfers can be done smoothly without any hassle, the feature will gain an ardent customer. Even better if they can send and receive international money transfers in a matter of seconds, with no delays or excessive fees.
The same goes for currency exchange. An integrated currency exchange option increases the value of your product. You can receive other countries without physically walking into the currency exchange institutions in reality.
Step-By-Step Guide to Building Money Transfer Apps
Money transfer applications are those that allow users to transfer money between accounts. These are popular as they are convenient for sending and receiving money. Here are steps to follow from start to finish:
- Define the scope and know your audience
First you need to understand the app’s purpose, what features you want to offer and the problems you want to solve. Then second thing you need to know your audience and do research to beat the competition in the field of building money transfer apps.
- Select right app development platform
It is the next crucial step you will face while developing your digital wallet app. Today you will find a wide range of platforms like Flutter to React Native etc. So you need to choose the right platform that will help in developing cross-platform applications.
- Make a list of features
When choosing a money transfer app, list out the features you are planning for. Choosing a vital feature can help you save time and money.
- Hire team of developers and designers
Hire a development team for your app. Hiring UI/UX designers,experienced developers and a QA team is the most wanted member of your team for building the money transfer app.
- User-friendly interface
A user-friendly interface is the most crucial aspect of the app. Choose your designer carefully to ensure that your application’s interface is user-friendly.
- Create a portal
Creating a portal is the most critical part of developing your application. You need to handle it with the greatest care. Develop a transfer portal at first. Then software developers will manage this task. The e-wallet will enable them to implement all of the aforementioned functionalities.
- Security
You need to create a foolproof security system. An authentication system can email users a one-time password before allowing them to log in or conduct transactions. Only registered mobile or email numbers with an account should receive the OTP. Users should be reminded to change their passwords every month via a notification. It will assist your money transfer app become more safe.
- App Testing
Once your money transfer application development is complete the next phase is you need to make your app error-free and bug-free. Therefore you need to make your application go through testing. Once any error is detected, the QA engineers will correct them immediately.
- Launch & Maintenance
After completing your testing, now launch your application. Additionally, make sure to invest in maintenance so that your software will be functional in years to come. To remain competitive, always update your application with the latest features.
Kodehash Is Your Most Trusted Partner
Decades of experience and our impressive client portfolio is enough to describe Kodehash services.Our qualified professionals create personalised financial software to meet your specific business and budget needs. We never compromise on quality and always work with cutting-edge technologies.
One of our success stories was to develop a global mobile banking platform for a client that enabled phones to open bank accounts and access P2P banking services. Kodehash used blockchain, biometrics technology, and three-factor authentication to keep user data safe and secure when transmitting money throughout the world.
Final Thoughts
Today consumer-centric digitization is rapidly replacing conventional means of providing financial services. The most popular technologies add new relevance to future improvements in money transfer app development.
While there are many obstacles you will find in developing complicated systems, banks and remittance providers continue to place a premium on the easy, cost-efficient,and quick maintenance of an application. Especially when an app development business offers to share its best practices for creating dependable and effective solutions.
So, are you interested in creating your own digital wallet app? Kodehash mobile app developers are always available to quickly turn your best money transfer app concepts into reality.