How To Develop a Peer-to-Peer Payment App like Cash App?

Updated 23 Sep 2022
Published 14 Mar 2022
Satyam Chaturvedi 2456 Views

Millions of new applications hit the market every day, but only a handful achieve the success they want. In other words, it’s a good idea to enter the app ecosystem with the kinds of applications that are popular at the time.

As an example, applications for the financial industry, such as those that allow individuals to pay bills, transfer funds, trade-in Bitcoins, and much more, have been a big hit recently.

Plaid and The Harris Poll found that 59% of Americans now use fintech applications to handle their money, compared to 53% before COVID-19, and 73% believe FinTech is the new normal in financial management.

P2P payment app development allows enterprises to offer payment services regardless of location. Increasing numbers of people owning mobile devices and using mobile services make it imperative that these services should be expanded.

The Cash app, one of the most popular finance applications, is great for consumers who often buy and sell stocks, as well as make Bitcoin transactions. In 2021, the Cash app generated a profit of $1.8 billion because of its popularity. As a result, developing a Cash-like app is a smart option if you want to get into the app market.

The Cash App: What Is It and How Does It Work?

Square Inc. developed this peer-to-peer money transfer service, allowing users to pay and receive money quickly and conveniently. This application makes it easy for its customers to transfer money to their roommates, divide the expense of a trip, pay back their buddies for dinner, or any other financial chore.

P2P payment app development

Founders Jack Dorsey and Jim McKelvey formed Square, Inc. (SQ) in 2009 to fulfill their vision of creating a service that combines merchant services with mobile payments apps like Quadpay in a single, easy-to-use platform.

Small companies are already using Square to collect credit card payments, manage sales and inventory, as well as to apply for loans.

Square’s products include Cash App, a free mobile app that enables users to send and receive funds, and Square Point-of-Sale, a free tool that enables retailers to accept payments via smartphones.

A debit card, known as a Cash Card, is provided to users of the Cash app, allowing them to make purchases using the money in their account. An additional feature of this application is that it may be used to invest in stocks and trade Bitcoins.

Cash App – How Does It Work?

To comprehend how Cash App works, consider that it functions similarly to other money transfer apps, but with a few added features. To add money to the app, users just hit the banking option and enter the desired amount of cash from their associated bank account.

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To send and receive funds using Cash App, a user must first have an independent bank account that allows for quick money transfers to and from the Cash application account and serve as a platform for withdrawing funds.

To get started, customers need to download the Cash app and link their bank account to it. Using this bank account, anyone may transfer money from their own bank account to other Cash app users.

The method is similar to that of other platforms such as PayPal and Venmo, which allow users to connect a bank account to transfer funds and also store payments received in the application until they are eligible to be withdrawn.

Cash App: Few Statistics

  • Trading in Bitcoin was the primary source of Cash App’s $5.9 billion income in 2020, which represented year-over-year growth of 353%.
  • There has been a 169 percent rise in net profit year-on-year because of this surge in Bitcoin trading.
  • Cash App has more than 100 million downloads and 50 million monthly active users.
  • More than seven million people use the Cash App debit card, which gives them access to the money they’ve saved in the application.

P2P Payment App Market Report

Why is Cash App So Popular With People Who Use Payment Apps?

Cash App offers great convenience to its users and this is a major reason behind its popularity, however, that is not the only thing that attracts people to this app. Here we explain why the app is popular among its clan:

Basic Services are Free

Sending or collecting payments, inactivity fees, and international transaction costs are all free of charge on the application. As a result, the application is a big hit with its users.

Offers a Free Debit Card

With the “Cash Card” feature, customers may make purchases and withdraw funds from their Cash App account while on the go. A free debit card provided by Sutton Bank is available to users of the app.

Cash App is the only place where you can get this feature, and you cannot use it in conjunction with another debit card or personal bank account to keep track of your own finances.

Reduce your Expenses Using “Cash Boosts”

Cash Card users can pick a specific boost on their account that allows them to save money while purchasing from a certain vendor, such as receiving a discount coupon on DoorDash purchases. At any given moment, only one boost may be active however, users may change boosts as frequently as they want.

Get Paid for Friends’ Referrals

The app users get a $5 incentive for each new user they bring to the Cash App by sending them a referral link.

Provides Users with the Opportunity to Invest

The app gives users the option to invest any amount they want in a variety of firms by purchasing shares in their choice of those companies.

Users may buy stocks using money in their Cash App account, and if the app does not have sufficient funds, the balance can be deducted from the user’s associated bank account.

The App Supports Bitcoin

Users of the Cash App may purchase and sell Bitcoin using the app, however, there are two types of costs associated with this: a service fee for each transaction, and a market activity fee based on the price fluctuation across U.S. exchanges.

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P2P Mobile Apps Most Popular Business Model

P2P mobile apps benefit from a wide range of revenue models, such as:

Stand-Alone Financial Services

Some of the most popular peer-to-peer (P2P) payment apps employ this well-known business model. P2P payments can be made with or without credit/debit cards under this approach, both online and in person.

Functions of Mobile OS

Like Samsung Pay, Apple Pay, and Android Pay, this concept is most commonly adopted by other brands. No outside money transfers may be made in this model, which is restricted to the financiers themselves.

Card tokenization and device-based thumbprint authentication are both included in this design for further security and user convenience.

Functions Centered on the Bank

The ability to take payments at the point of sale (POS) is something that some banks are promising their customers via peer-to-peer payment apps and devices. Rather than depositing cash into a currency account, this approach allows you to choose from and deposit into bank accounts at any time. 

Web/Social/Messaging Features

Using this concept, social media sites may be integrated with payment systems. The social media payment systems discovered that users are more willing to transfer money to persons they often communicate with.

Leveraging their social media accounts, the concept makes it possible for individuals to send money to one another from virtually anywhere.

Top P2P Payment App Download Report
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Payment Apps: How do they earn Money?

Every app has to make sure that its service is popular and lucrative. Different monetization schemes are available for money transfer applications, including the following:

Free App

There are several advantages to making your app free in order to get it off the ground quickly. In order to use this approach, the firm must have substantial financial support, like ties to financial institutions such as banks or insurance companies. Smaller organizations, on the other hand, don’t have this flexibility, thus they may not offer a free app.

Profits from Payments

Another app monetization approach allows apps to charge a fee for transactions. Using this concept, the Square App charges varying commission amounts to various kinds of users.

For companies who accept Square Cash as a form of payment online, a 2.75% fee is imposed on each transaction. Then there is a flat $2 charge for ATM cash withdrawals.

For Credit Card transactions, the charge is 3%. The Cash App also charges a fee for Bitcoin exchanges. Square does not charge any service fees for stock transactions, although it does charge a fee mandated by SEC regulations. 

Cash App Alternatives: The Best Mobile Payment Apps

Best Mobile Payment Apps


This is a social payment app, not a normal payment-to-payment P2P app. People who frequently split bills at restaurants and cafés with their colleagues and gladly pay online prefer Venmo since it is free and easy to use. Users of iOS and Android devices can access the app.


With a global reach of over 200 countries, this app provides all-inclusive P2P payment services. As an alternative to Cash, it offers a variety of services, including multi-currency e-wallets, currency exchange, personalized invoicing prepaid cards, and more. Also, it is free to use and can be used on both iOS and Android platforms.


Online purchases have become increasingly popular because of the ease with which PayPal may be used. This allows users to send and receive money with convenience and confidentiality. Using this application is a breeze because of its simple design and user-friendly interface. 

Features of Money Transfer Application like Cash App

The features of peer-to-peer payment apps like Cash App play a crucial part in their success. If your app has the necessary functionality, it is more likely that it will be adopted by the intended audience.

The following are some of the most important things to look for in a money transfer app:

Payment App Development

Money can be Sent to Anyone

Instant money can be sent by just pressing a button on the Cash app, which is a simple yet important tool for app users. The entire transfer procedure is quick and simple.

Spend Money

Users of the payment app may utilize this function to pay for their purchases or expenditures rapidly and effortlessly. Using the app, the payment may be done immediately and without any complications.

Direct Deposit to a Bank Account

Users of the Cash app may utilize this functionality of Direct Bank Deposit whenever a payment is received and they want it deposited into their bank account.

Invest in Stocks

Users may now choose their own equities to invest in using this new option. Generally, there is no charge associated with stock trading; however, users may be compelled to pay a fee to government authorities.

Read Also:- How to Develop an E-Wallet Mobile App?

Advanced Payment App Features to Consider

Push Notification

This functionality is in charge of sending quick notifications to the app’s users. The notifications and messages may be sent promptly to the users and are generally personalized.

Authentication through OTP and a unique ID

Having this feature assures the safety of payment apps. An OTP verification should be required for every transaction made via the app, which means the user will need to create a unique ID each time they use the application.

Incorporating a Chatbot

To guarantee that app users have a positive experience with the app, developers should include a chatbot feature that allows them to quickly and easily reach out to the chatbot for help.

Management of the Banking Partners

Managing the bank partner and how it interacts with the payment app is made simpler with this option. Payment applications allow users to quickly make transactions and deposit funds into their accounts by linking their bank accounts.

Dashboards and Real-time Analytics

It is a feature that enables the administrator to monitor the users’ activity in real-time and takes appropriate measures to ensure they have a positive experience with the application.

CMS System

As with every app, the content is critical, and this is no different with payment applications. To keep tabs on the app’s content, a CMS function may be incorporated. To put it another way, it’s all about enhancing the user’s digital experience.

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What Do You Need to Know Before Developing a Mobile Payment App?

Mobile Payment App

Decide the Platform of the Application

To create a mobile app for a personal loan, you must first choose which platforms it will work on. Is it only going to be accessible on Android, or do you plan to develop a separate iOS app?

Consider using cross-platform app development frameworks if you want to reach a wide audience. Choosing this option will also reduce the cost of developing a personal financial app.

Make a Quick Sketch of your Concept

Hand drafting is an excellent approach for capturing your thoughts on paper. Having a clear UX sketch brings together the entire team.

Everyone in the company can see and understand the app they are trying to build when everything is written down. UX designers often use wireframes as a starting point for their collaboration with graphic designers.

The level of detail and the number of panels in a wireframe should be much higher than in a sketch.

Start Development

The development phase is when you begin developing the code for the “final” version of the application. This is the stage when you use the wireframes’ input to make some important decisions.

Flow and agile methods can be used in this situation. In general, an agile approach is preferred when creating a mobile application.

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Additionally, you must incorporate an analytics engine into your app while you’re at this stage. If you want to know how your app is being used, you need to create events for every possible user interaction.

Test the App

Ideally, testing should take place at the same time as development. To reduce post-release costs to a minimum, it is essential to test often. The importance of unit testing, UI testing, and component testing cannot be overstated.

While test cases might add time to the development process, they can save time and money in the long run when it comes to delivery and updates.

App’s Maintenance 

Maintenance is the process of monitoring the health of your application, resolving any faults that may occur, and assuring that it continues to function effectively.

Modifying your app to work with newer handsets or OS versions is an important component of application maintenance.

Read Also: – Growing Importance of App Development in Today’s Scenario

How much does it cost to design a P2P mobile app?

When it comes to app development, there are many variables to consider, such as the app’s complexity and functionality; the tech stack and platform used; and so on. The finance app firm can provide you with an estimate on the cost of creating an app like Cash App. 


We hope you’ve found this blog informative. P2P payment app development may seem intimidating to some companies at first, but it has the potential to revolutionize the financial industry. To sum it up, developing a P2P payment app is no more difficult than designing any other sophisticated app. If you choose a professional mobile app development company, they can help you streamline the process.

Satyam Chaturvedi

Satyam Chaturvedi is a Digital Marketing Manager at Arka Softwares, a leading app development company dealing in modern and futuristic solutions. He loves to spend his time studying the latest market insights.

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