Venmo is an easy way to instantly pay your friends, roommates, and family using your mobile device. This app helps people send money to each other and build out their profiles so you can find out who owes you what easily when you split the bill with your friends or order online from people who won’t ship your things without you paying them first (a practice known as check-n-go).
With social features like Facebook integration and one-click payments that don’t require any login details, Venmo makes the transaction of money between two people painless, fast, and fun!
As per a report by BusinessOfApps, Venmo makes over 700 million payments and earns significant revenues. Over $200 billion in payments were processed during 2021, as well as $850 million in revenue, which was the highest growth rate in four years.
This information tells you how the mobile payment ecosystem is growing and how it impacts your everyday life.
- 64% of internet users prefer mobile payment apps to buy goods and services.
- By 2024, global mobile transaction values are expected to hit $3.08 trillion.
- Digital and mobile wallets accounted for 29.3% of North America’s eCommerce transaction value.
- 1.31 billion people will use mobile payment applications by 2023.
- Apple Pay is the most popular mobile payment app in the United States.
- Apple Pay is used by 507 million of the world’s population.
- Zelle, the leading mobile payment platform in the US for peer-to-peer payments, is the most used one.
- 79% of global users have used cashless payment methods through NFC POS terminals since the Covid-19 pandemic, which is expected to continue.
What Is Venmo?
Venmo is a mobile app for Android and iOS devices which are primarily used for a type of micropayment between people. Its main use is usually when people pay back a friend for the tab at a restaurant, repay someone who loaned them a cab ride or share the rent on an apartment.
Like PayPal, Venmo connects to your bank account, credit/debit card, or checking account, but it also offers an in-app balance.
Venmo is unique because each payment is attached to a public or privately shared message. Facebook or Twitter work much the same way.
In addition to that, Venmo announced cryptocurrency support back in 2021. You can now easily buy or sell four different cryptocurrencies Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. There are also tutorials and guides for beginners who want to know more.
As part of the new deal, Venmo will also offer customers of Amazon the ability to pay with the payment service following PayPal’s split from eBay in 2022.
How Does Venmo Work?
After installing the Venmo application via either the Apple Store or the Google Play store, users can connect Venmo with a debit or credit card account or checking account. Once enrolled, a Venmo user can begin exchanging money with any other Venmo user immediately.
In peer-to-peer transactions, Venmo is an intermediary between two accounts of people conducting transactions. In this case, for example, let’s say John agrees with jay to sell him the bracelet for $70. John sends the money to jay through Venmo, which increases the amount in Jay’s Venmo balance by $70 while decreasing John’s Venmo account by that same sum. The two parties do not pay any fees.
Want to Know the Venmo App Development Cost?
This way, the Venmo balance is an electronic ledger that records money that changes hands on the Venmo platform. As long as Venmo deposits the funds to the recipient’s bank account, it’s not physically in the user’s possession.
How to Send or Request Money
Money can be sent or requested by tapping the Venmo Pay or Request button, entering the email address, phone number, or username of the individual you want to send it to, and then tapping Enter. As the recipient, you can withdraw the funds into your Venmo balance or transfer them to your bank account. The fee for using Instant Transfer is different than for using traditional delivery.
One can load up their Venmo account from their bank and a debit card.
The app lets you make payments without having the necessary funds in your Venmo account. Your linked bank account will be debited if payment exceeds your current Venmo balance. If the transfer amount is equal to or less than your balance on the platform, the funds are used from your balance.
When you pay with a linked credit card, there is no fee.
Primary Features of Venmo Like Application
P2P Money Transfer
One of the primary features of a Venmo like application is the ability to transfer money from one person to another. It can be done by entering the debit card information for the account receiving the funds and inputting how much you would like to send and what currency it should be in. All transactions are made through a secure connection, and there is no limitation on how much amount you can send or receive.
Make Purchases
The major focus of the Venmo application is to pay someone in real time, as opposed to payment from other methods. You can pay a contract or use Venmo money for regular monthly expenses.
Access Contacts
Your app, such as Venmo, must enable contacts (friends or family) to receive payments without sharing card or bank account information. They should be able to search through the contact list and get paid without the need to provide any personal information. To use this feature, your Venmo-like app needs access to the contacts saved on a user’s phone.
Real-Time Payments
Payments must be instant; these instant payments could be made to an acquaintance or a utility provider. To do business and offer convenience, you must provide your customers with an efficient real-time payment system.
Bank Accounts And Credit Cards Integration
Banking accounts and credit card integration are among the most important features a Venmo like application should have. It will allow users to easily make payments without having to go through the annoyance of filling out payment information whenever they want to send or receive money.
App Wallet Money Transfer
There are a bunch of reasons you might want to use a digital wallet, but its convenience is number one. With mobile payment apps like Venmo, you can send and receive money with just a few taps. What’s great about these apps is that they’re also perfect for splitting the bill at restaurants, paying your friends back for drinks, or even buying something online without entering your credit card information.
Request Payments
It allows users to request money from Venmo users who owe them money. This feature requires an in-app messaging and notification feature to notify the other users.
Chatbot Assistant
People using your app may need instant help. Using a chatbot is the most convenient way to give that help.
A chatbot can interact with your customers to answer the most commonly asked questions and handle the most common problems. Chatbots can be programmed to offer promotions, answer pricing questions, and perform other tasks crucial to running a business but either too time-consuming or too difficult for humans to do effectively.
Split a Bill
Split a Bill is an app that allows users to split the bill for their meal or purchase. It works like any other payment service but with a built-in feature that splits costs between all the people who participate in the transaction.
If you’re splitting a dinner bill for four people, for example, Split a Bill will charge each person 25% of the total amount. You can also select what percentage each person pays from 10% to 100%.
Cryptocurrency Payments
The worth of digital money is climbing steadily. The cryptocurrency marketplace is anticipated to grow with a CAGR of 56.4% from 2019 to 2025. Many organisations accept payments for their services and products in cryptocurrency.
Letting your users pay in cryptocurrency may be worthwhile if you plan to develop a cutting-edge application with features like this. However, this may cost a great deal of money to develop.
There are many mobile payment applications for users at present. Your app must have distinct features to draw more customers.
Venmo has a convenient social feed integration feature within its application. Users can use it to share updates about their ‘payments’ which are then posted to their “friend’s feeds”.
Features like this scored big points with users when the app launched in 2009. It attracted a lot of younger users and was acquired by Braintree, a company from PayPal, for 26.2 million dollars.
When aiming for similar market success, you should develop a unique idea your target user market will be interested in and add it to your app.
Step By Step Guide to Developing an App Like Venmo
Step-by-Step Guide to Developing an App Like Venmo and Paypal
Choose the Optimal Development Platform
Before you start developing a mobile app, you first need to choose your development platform. The most popular options are Android and iOS; hybrid platforms like React Native can also target both platforms with one codebase. Each platform has pros and cons, and you must determine what is best for your project.
Hybrid Apps
Hybrid apps can be used with different operating systems (OS), such as Android and iOS. The development tools it uses follow the idea of writing a single program and deploying it to all the intended OS. This reduces time and cost and also costs.
Popular Hybrid App Technologies are React Native, Xamarin, Adobe PhoneGap, and Ionic.
Native Application
Native apps are written in a specific computer programming language, such as Java for Android or Objective C for iOS. These applications are fast and reliable, which is why they’re popular among other developers.
The most popular Native App Technologies- are Swift, Java, C++, PHP, PhoneGap and HTML5.
Cross-Platform Apps
Cross-platform applications are also compatible with various operating systems. It could be similar to hybrid apps, but they’re different.
Many cross-platform applications are available on the market which can offer native-like performance. The development process is less than native.
Create UI/UX design concepts
P2P payment apps like Venmo are gaining popularity for friends and family members to transfer money easily. If your interface is confusing, you’ll lose most of your users. Investing in user experience and interface design is crucial. Make sure you test the UX at the earliest stages of your development and consider the user journeys above.
Consider Security Issues and Compliances
Security is next to consider in P2P payment apps like Venmo. It is only relevant in the financial world. If users spot any security flaws they cannot fix, they’ll immediately quit the application and move to a competitor. So, always include the option to hide the user’s private information such as the debit or credit payment card’s CVV or transaction number.
Every economic grouping or country has specific rules and regulations an app must follow. If not, it will not be successful. Mobile app developers constantly review compliance requirements, such as PCI-DSS, data encryption, and two-factor verification. We also suggest you revisit the region you want to target.
Develop an MVP of Your P2P Solution
The next stage of developing a payment app for P2P is MVP. A Minimum Viable Product or MVP is essentially the development process that allows you to determine the app’s core capabilities.
Experts in the development field suggest developing MVP to get the basic concept of functions. It saves time and money as well.
In addition, the early design of MVP allows you to test the app before users and get feedback from them. You can move the MVP into the full version if they respond positively. It also increases the app’s chances of being successful on the market.
Develop and test your application
When the plan is ready, the tech stack has been decided, and developers have prepared a development environment for your app, it’s time to start. Modern development also involves testing while writing code, so these two processes simultaneously exist.
To make the most of your app and succeed in the app market, you should speak with your target audience and validate the idea through an MVP.
If your eyes are set on a particular target market, it is wise to know any relevant legal and certification requirements.
Test and release your application
Now that your app has been developed, you can go ahead to the next step – releasing it. You should find that because you’ve already spent time marketing, users are starting to come on board.
Now that the app is launched, you want to track what behaviours you can see your users exhibit to identify any glitches or improvement areas. A nice way to get customer feedback is by setting up a survey during your MVP phase. This feedback will help you target your development efforts and fine-tune the user experience of your progressive app.
Maintain and support your app
If you’re considering creating a payment app like Venmo, you must consider maintaining and supporting your app. These are necessary steps in the prolonged run if you want to continue having success with your app. You’ll need to ensure the security protocols are up-to-date and add new features as time goes on. Make sure that any updates have been thoroughly tested before downloading them!
The Cost of Developing an App Like Venmo?
Creating a successful payment app like Venmo is never a simple task as it requires knowledge and research of the fintech industry, along with any popular trends you might want your app to fit into.
Fintech apps need to be very secure and careful with customer data. It means having professional developers, flawless work and robust security algorithms. Because these things are needed, it will take time and effort.
The process of developing a payment app like Venmo will go something like this:
- Business Model Analysis- to be completed in 100 hours.
- Usability-plus-user-interface design work, at 150 hours.
- 200 hours spent working with back-end development.
- Integration of Must-Have Features in 800 hours
- A test (300 hours)
- Add more features and move to a new level (which will take approximately 200 hours of effort).
That’s just the thing. Prices will vary depending on what developer you hire, their location, and how much experience they have. On average, developing an app can cost you between $25-80/hour.
If we have to find a ballpark number on the price, let’s say the total hours your team would take to complete your project is 1500. Now, the standard charge for developers is $35 per hour. So the would be:
1500 × 35 = $52,500
You should, however, keep in mind that a quote for such a project will have a lot to do with the exact requirements of your business. Reach out to our experts to find out the exact cost of your project
Final Words
Now, thinking about making an app like Venmo, here’s the first point you should take care of for your P2P payment app. Peer-to-peer payment apps are popular for their speedy and convenient process of sending and receiving money. They may also be safer than alternatives because your bank info doesn’t go through them.
Whether or not you feel qualified, we will provide professional solutions and guidance so you may achieve success in this arena.
Let our software engineers turn your ideas and requirements into a working P2P payment app. Don’t miss your chance to make a difference in the fintech industry!
Esferasoft is a trusted app development company for Venmo. We provide the best software solutions for your business needs and can help you create an app like Venmo. Hiring a software development company like Esferasoft will ensure peace of mind and understanding that your project is in professional hands.
FAQs
What are the steps to making a P2P payment app like Venmo?
To create a Venmo-like P2P payment app, you will need a detailed understanding of the features the app will require. Aside from these factors, it helps to know the technology stack and team requirements before beginning Venmo-style app development.
What is the pro and con of using Venmo?
Following are some of the positive and negative aspects of Venmo.
Pros: Easily send and receive cash with low fees for paying with a credit card, offers a debit and credit card, etc.
Cons: Doesn’t accept international transactions, can’t cancel payments, etc.
What is the best way to create a low-cost money transfer app?
Consider outsourcing your mobile payment app development to software development companies that provide a complete product development cycle, including design, deployment, and maintenance; that is why you don’t need to look further.
What is the best way to create an app similar to Venmo?
Market research and competitor analysis are the first steps that should be taken to create a business plan. This information is crucial to planning the development process. For example, if you contact us, we recommend you go through a discovery phase if you don’t have a technical team yet. During the discovery phase, you plan every aspect of your future application, including functionality, technologies, and third-party integrations.
What is the cost of developing a fintech app?
We will provide you with an estimate after we discuss your project, so you know roughly how much your app will cost. An estimate is usually around 70% accurate. We can provide a detailed estimate only after the discovery phase when we have all the details about your project.
