Creating a Robust P2P Payment App for the Financial Industry

By  Maham Qasim

November 05, 2021 4:59 pm EST

Today, mobile users have a plethora of banking apps to choose from that can perform most, if not all, of the tasks they need.

The current banking industry has been running for centuries with many institutes that already have their audience and reputation. Many such banks have increased the security levels around their apps, making it hard to compete against established players. And yet, payment apps are still limited in their capabilities.

This article will discuss some of these main challenges that peer-to-peer payment apps face today and address them.

Peer To Peer Payment- History And Development:

The history of P2P payment in banking goes back hundreds of years thanks to the existence of cash. Cash as a currency is effortless; anyone can use it, and physical notes are much harder to steal than digital data. National currencies have been present for centuries– having one allows people to store money in banks or invest it in the economy.

As money gradually evolved from physical to digital, the usual form of payment shifted to credit or debit cards, as they are straightforward and widespread. However, banks have never allowed users to make direct payments amongst each other with their platforms. This was left for third-party services like PayPal or Venmo, which have revolutionized the way we make transactions today.

A Robust Peer-to-Peer Payment System:

A P2P payment system is an app that allows users to send and receive money directly from one another without a third party. The features of P2P payment apps are usually limited to paying and requesting money and adding or withdrawing funds into the store wallet. The cost of each transaction depends on its size or amount.

P2P payment apps usually have low-security standards as they only include a limited number of features. Users can add funds to their store wallet with either credit cards, debit cards, or bank accounts. 

However, the main problem with P2P payment apps is that security is not considered important enough during the development process because it does not directly impact the end-user.

Blockchain-Based P2P Payment App:

A blockchain-based P2P payment app would require the services of a multidisciplinary team of software engineers with extensive experience in the cryptocurrency sector. When creating such an app, the first step is establishing a secure system for storing fiat currencies into wallets and making them easily transferable between users.

Tokens can then be used for the actual transactions that take place on the blockchain. In addition, users can store tokens in their wallets and make fast, free, and secure payments to their friends or family members without relying on third parties like banks. 

The security of such a payment system would be easy to implement as there are already proven models available. Still, more research is necessary before creating an app that serves this purpose.

The next step would be to create a P2P payment system for cryptocurrencies, which is much more challenging to pull off and requires the expertise of highly experienced developers. Since no token can be used in this payment system, some stable currency needs to represent all types of cryptocurrencies.

The stable currency would have to be backed by a reserve of cryptocurrencies that can be easily purchased in case the value of the regular currency decreases significantly. This approach is already used in financial markets where currencies like Dollars or Euros are backed by Gold and other valuable metals. Still, people need to understand why it’s necessary before implementing it.

Furthermore, the P2P payment app is expected to be released sometime next year. It would show people how blockchain technology can benefit them instead of harming their reputation. At the same time, the lack of regulation in crypto markets has led some countries to ban these types of apps, slowing down their actual development.


Blockchain-based P2P payment apps are expected to disrupt the banking industry by offering users a way to transfer money between one another securely and quickly. The developers will have to create and implement different technological solutions for each part of the P2P payment app:

  • Wallet for storing fiat currencies;
  • Token system for making peer-to-peer transactions;
  • Stable currency backed by cryptocurrencies.

This approach will show people how safe and efficient these types of apps can be in real life compared to their alternative—national currencies— while changing current perceptions about blockchain technology.

Maham Qasim

Maham is a copywriter and content creator who's always been drawn to the idea that there's more than one way of getting things done. Her writing career can be thought of as just another side hustle for her; when she isn't crafting content or reading Oscar Wilde, Maham often strategizes about how best to reach out with an engaging voice in this ever changing marketplace!

More like this