How To Build A Money Transfer App That Is The Best For Your Business

There has been a massive digital transformation of the financial market, and the popularity of FinTech is steadily increasing. We are gradually shifting from traditional banks characterized by long queues and wait times to online mobile banking that enables instant financial services.

The global mobile app payment market has an annual growth rate of 23.8% between 2021 and 2026. The market's largest segment will be Digital Payments with a total transaction value of US$8,488.00bn in 2022.

That is one of the reasons by the development of online banking, or P2P apps has skyrocketed over the years. It has proven to be beneficial and profitable in more ways than one when done correctly. So, this article will show you how to create a money transfer app.

What is a Money Transfer Software?

A money transfer app is a platform that helps users carry out online banking transactions to multiple banks using different currency options.

Unlike traditional banks, users can use these apps at any time and place as long as they have Internet access.

Step-by-Step Guide on Building Money Transfer App

Building a successful money transfer app can sometimes take time, especially when new to the process. However, we have provided this step-by-step guide to help simplify the process.

Discovery Phase

It is often recommended to start with the discovery phase when building a P2P money transfer app.

This phase comprises client interviews and competitor and market research. You can’t just jump into building the app without knowing your competitors and the challenges faced to break into the market.

In the discovery phase, you will understand all the core features needed to make the app captivating for users and the technologies required to implement these features.

Building a User-Friendly UX Design

Once the discovery phase is completed, start with designing the user experience. This is a crucial step in the development process because the design will determine the app’s user-friendliness.

Also, ensure the implementation of mobile and desktop interfaces for the app. Even with the best features, an app that could be better designed will have a high user attrition rate.

Money Transfer Software Development

During the development phase, the developers will work on implementing all the core features and integrations needed for the app to function properly. Integrating a user management module helps administrators better manage user information. It also ensures that various rights and permissions can be assigned to users.

One of the best approaches to use while building the app is to follow agile principles. This software development methodology is centered around iterative development and collaboration between cross-functional teams.

Ensuring Security

Security should be a major concern when dealing with the transfer and reception of funds. Users will trust the app more if they know you implement the best security measures to ensure their money is safe.

That is why implementing services like Know Your Customer (KYC) and Anti-Money Laundering (AML) is vital for your app. It is also important to add security options like backups and recovery, data encryption, etc. to keep your system safe from cyber attacks.

Types Of Money Transfer Software

There are various types of money transfer apps. However, we will talk about the two most significant ones.

Person-to-Person (P2P) Payment System

As the name suggests, this type of money transfer app allows the transfer of money between individuals. It can be done on personal computers or smartphones.

The money can be transferred using the recipient's mobile phone number or email address. Here, an account number is not needed.

Cash App is one of the most used P2P payment systems.

Business-to-Business (B2B) Money Transfer System

This is a payment app that enables the transfer of money between businesses.

B2B transactions often involve recurring purchases, long payment cycles, and multiple approval steps. A B2B money transfer system is designed to eliminate these challenges and move funds between businesses easily.

Stripe is a good example of a B2B money transfer app.

Cost to Build Custom Money Transfer Application

The process of developing a money transfer app is complex and challenging. There are lots of different stages, each requiring a set of different expertise, starting from the discovery phase to implementing features and marketing.

You will incur expenses at each of the stages, and that is what adds up to the overall cost of building the app. So, there are some of the things that influence the cost:

• Number of features

• Technologies

• Staff costs

• Getting a license

• Legal costs

• Marketing

Development Approach For Money Transfer App

Custom Development

Custom app development is the process of creating an application that suits the needs of a client. This can be done by your in-house developers or outsourced to a third-party company like Sloboda Studio.

There are many reasons why companies decide to outsource their app development.

Most often, the companies don’t have the required resources and skills in-house to develop the money transfer app. Also, they may need an app with features that are not available on the market, which would require custom development. Another important reason why some companies decide to outsource is the cost of doing it in-house, especially for large projects with multiple developers involved.

Sloboda Studio is among the top custom app development companies with over 12 years of experience building FinTech apps.

One of their most prominent FinTech projects is CrowdInvest.

CrowdInvest is a social crowd-investing app for investment clubs. Thanks to it, users can collaborate, invest, and earn together. Sloboda Studio’s team has created the MVP of the social crowd investment mobile application with clear architecture and a number of features, including registration, invites, email and SMS notifications, and access to real-time market data.

Software-as-a-Service (SaaS)

Software-as-a-Service is a type of software that is hosted by a third party and accessible over the internet. The company does not need to purchase any hardware or software to use the product. This kind of software is also called “on-demand” or “pay-as-you-go” software.

A SaaS provider offers an application that can be accessed through the internet, and it will run on any device with an internet connection. It does not require installation, and it does not need to be purchased upfront.

So, you can simply purchase your ready-made money transfer app from a software vendor to save time.

Conclusion

To ensure that your money transfer app is successful and profitable, use the following steps:

• Generate an in-depth business and monetization plan.

• Evaluate all the main features that should be implemented in the minimum viable product.

• Ensure that the app follows all security and legal requirements.

At Sloboda Studio, we are experts at transforming business ideas into code. We can provide you with the best specialists to build your money transfer app from scratch or scale an already existing one. If you are interested, book a free consultation with us.