Introduction to Money Transfer apps
Money transfer apps, also known as peer-to-peer (P2P) apps, allow you to send money from one person to another in a quick and secure manner. They make payments easier and allow you to link your credit card or bank account via a digital wallet. These apps could be bank apps, mobile wallets, and so on.The cash system is still in use and has not been completely replaced by online transactions. However, following the 2020 pandemic, more than 60% of businesses extended online payment gateways to their clients, adhering to social distance rules.With a mobile app, the payment world has transformed the financial industry; imagine the possibilities. There's no need to waste paper or stand in long lines. The time-consuming process has been simplified by a few taps on the smartphone. It is not only quick and easy, but it is also secure.
Unlike traditional wallets, eWallets store money online. The transactions are carried out digitally. The eWallet app is a solution that allows users to store their card information in an online wallet app and make payments by scanning the QR code or entering the payee's phone number. The funds are taken directly from their account and transferred to the payee's bank account. This has sped up the transaction process and made people more efficient when it comes to making quick money transfers.Consider the ability to make payments without having to carry your wallet with you. All you have to do is bring your smartphone. Only a smartphone equipped with an eWallet app can meet all of your shopping needs.
Scope and benefits of having a money transfer app
The market is flooded with hundreds of startups, and some banks, retailers, and financial service providers are launching their own channels. The smartphone is driving this revolution, which is aided by smartphone apps that allow users to store, send, and receive money using their phone, eliminating the need for physical banks entirely.
- Provide your users with a quick fund transfer service.
- Provide users with money-saving deals in the form of discounts, offers, cashback, and so on, whether they are travelling, shopping, or paying bills.
- Encouraging users to set up automatic payments in order to send and receive payments on time.
- Allow for quick money loading via credit or debit cards, as well as internet banking.
Top Examples of Money Transfer apps
Himalayan Bank provides this remittance service. It has a broader range of coverage throughout Nepal's cities, towns, and villages. It is a web-based online money transfer system that is highly secure and only accessible by authorised and registered PCs. It, like other remittance firms, offers online capabilities. We can find money transfer agents from outside Nepal by using the "Locate Global Service Partner" feature. "Find Paying Agent in Nepal" assists in locating agents by district. The transaction's status can also be tracked using the "Track Status of Himal Remit Transaction" function.
International Money Express
IME is one of the world's fastest, most secure, and safest remittance alternatives for you and your family. It efficiently permits both the sending and receiving of money around the world. International Money Express Pvt. Ltd. is a Nepal Rastra Bank-registered company. Anyone who wishes to make a payment or transfer money to a person in the pay-out country can use this. The beneficiaries may be paid in their own currency. IME offers money transfer services such as "Sending Hard Cash Money," "Online Money Transfer," and "Door to Door Transfer."
MoneyGram is also one of the finest ways to send money to Nepal from other countries. Moneygram has 300,000 agents in 197 countries, which is an advantage. It offers safe methods of money transfer. MoneyGram is accepted at Nepal Bangladesh Bank, United Remit, International Money Express, Easy link Pvt. Ltd., Himalayan Bank, Prabhu Money Transfer, Bank of Kathmandu, Samsara Money Transfer, and many other locations where the MoneyGram sign is displayed.
Trends in the industry to keep a eye on
Banks and remittance companies are competing fiercely with emerging FinTech startups that offer new apps to make customers' lives easier. Even the reputation of household names in the banking industry will not ensure their success in developing cash-less money transfer system software if they do not keep up with technological advances. Western Union, for example, is already feeling the pressure from FinTech startups and is investing in transforming their conservative business models into digital ones.Companies must develop payment solutions that align with three global trends in order to survive:
- Consumer demand for digitalization is increasing.
- Regulations are enforced
- Payment processing and money transfer industries are merging.
The demand for real-time, agile, and personalised services is being met by innovative digital payment solutions. Moving from traditional models to online services has proven to be highly profitable: TransferWise, an international money transfer platform, reported £67 million in revenue in 2017.People can benefit from the expanded functionality of a mobile banking system and online payment apps as distributed ledgers gain popularity. Some money transfer platforms use Bitcoin and blockchain technology to move large sums across borders without providing cryptocurrency to their customers directly. Ripple, one of the largest blockchain companies, has collaborated with over 100 financial institutions to provide cross-border payment technology. Customers are increasingly preferring to communicate with company representatives through UX-driven online platforms rather than directly with company representatives. Getting assistance online is more convenient, transparent, and less frustrating.
Market segmentation and buyer personas
According to marketsandmarkets.com the global mobile money market is expected to grow at a compound annual growth rate (CAGR) of 28.7 percent from USD 3.4 billion in 2019 to USD 12.0 billion by 2024. The growing number of mobile subscribers is fueling the growth of the mobile money market. Companies have developed new innovative mobile oriented functionalities and solutions to bring the world to the customer's fingertips in response to the growing number of mobile phones and increased network coverage in developing countries. The growing number of mobile subscribers represents a growing opportunity for monetary transactions via mobile phones. The global number of mobile subscribers is expected to grow.Money transfers will account for the largest market share by application during the forecast period.
The mobile money transfers application is expected to have the largest market share during the forecast period. International remittances, cash-in/cash-out transactions, and off-net transfers are all part of the money transfers segment. Individuals living in foreign countries or those dealing in real estate frequently use these transactions. The high cost of real estate in developed countries, as well as the large number of people from developing countries living in developed countries, are major reasons for the widespread use of money transfer applications.Historically, several banks and financial institutions have provided money transfer services. Many transitions are carried out using mobile phones as people adopt new technologies.
The proximity payment segment is expected to grow at a faster rate in the mobile money market by type of payment during the forecast period. Mobile phones and POS devices are used to make proximity payments. Several companies currently provide applications that enable proximity payments. It is also known as in-store payments in the case of a retail store or in-location payments in the case of payment through a merchant's POS terminal. Proximity payments are designed for short-distance transactions and work when both the payer and payee are present in the same location.The mobile money transaction is initiated by this payment system using either barcodes or contactless interfaces. This is accomplished using Near-field communication (NFC)-based technology found in an NFC-enabled phone, which contains detailed information about the mobile wallet stored in the cloud or a debit/credit card. The payee's information is saved on the device, which is read by the corresponding NFC reader in the POS terminal. Proximity payments differ markedly from remote payments in that they involve the presence of payment card details from one's own bank account and do not require any tie-up with a payment processor to facilitate the transaction.The growing acceptance of mobile payment technologies by brick-and-mortar businesses fuels the demand for proximity payments.
Common challenges faced while building a Money transfer app
Regardless of the type of digital payment solution you create? You will face a number of obstacles that you must overcome. So, let's take a look at these difficulties.We have divided these challenges into two categories for your convenience:
It is the most difficult challenge that any wallet app development company must face.In the past, hackers have gotten the better of the most well-known and secure platforms, such as PayPal and NIC Asia bank.Because these apps contain a large amount of confidential data in one location, the risk is always greater, making it critical for P2P service providers to ensure foolproof security.
- Comply with PCI DSS
All brands that deal with confidential banking data must follow and comply with PCI DSS compliances.Your solution must meet the following criteria in order to comply with its guidelines.
- Keep confidential information secure.
- There is a vulnerability management system in place.
- Create stringent access control policies.
- Network testing and monitoring should be done on a regular basis.
- All security policies should be updated.
- Keep your network and system secure.
- Currency conversion
Currency conversion is a challenge that all P2P payment services face.Because there are more than 180 currencies in use around the world, it can be difficult to convert currencies in real time.Furthermore, one must create a peer-to-peer app in such a way that money transfers occur in the shortest amount of time possible.
- Regional restrictions
One thing that most P2P payment apps have in common is that they are geographically limited.Even today, no peer-to-peer app allows users to send money across borders. To become a top industry player, P2P apps must expand beyond their geographical boundaries.
- Cases of Dispute
There are a variety of issues concerning peer-to-peer payment solutions.For example, when a user sends money to a friend and the money is debited from the sender's wallet or bank account, the recipient does not receive it.
- Slowly changing mindset
It is undeniable that peer-to-peer transactions conducted through P2P apps are faster and more convenient.People, however, continue to prefer the traditional method of payment, i.e., cash.And the reason is straightforward. Nobody wants to jeopardise the security of their sensitive financial information.
Essential features a money transfer app must have
When developing money remittance software, you must provide your customers with the highest level of data security. This includes legal compliance, confidentiality, secure system logs, various options for user authentication, and more.
Top-ups for mobile phones and utility bill payments- Allow customers to pay their bills or top up their friends' and family members' phones from anywhere and at any time while earning extra money.
Electronic wallets- There's no need to travel with a wad of cash or open multiple bank accounts in each country your clients visit. Allow them to deal with only you, make it easier for them to pay, and make it easier for them to budget — and you'll keep them loyal.
Online ID check- To make your clients feel safe, send out automated KYC registration and verification requests when they send money over a certain amount.
Payment information- The ability to visualise and analyse transactions by volume, receiver, status, country, and so on assists your customers in better managing their finances and using your money transfer software system for purposes other than remittances.
Notifications and warnings- Users can stay informed about transaction statuses, important payments, and regular money transfers by using push notifications and SMS alerts (monthly subscriptions, for example).
Currency exchange and international transfers- this feature allows your clients to enjoy worry-free cross-border money transfers with low fees, or send dollars and receive euros in a matter of swipes.
Interface and support in multiple languages- Why limit yourself to one language when you can reach a global audience?
Incorporations- APIs, FTP, and other protocols allow you to connect to global banks and MTOs.
Money transfer apps are without a doubt one of the most efficient ways to send money abroad. They are convenient and simple to use from any location. If you need to send money to your child studying abroad right now, you can do so more quickly and securely using your smartphone. There are convenient money transfer apps that allow you to transact remotely.To summarise, electronic transfer funds have been around for many years, and the economy has benefited greatly from this technological advancement. Credit cards, for example, have facilitated monetary transactions and even provide a way to finance everyday purchases on credit. As a result, bitcoins are becoming more popular, but there are still many questions and concerns about a virtual economy. The risk of identity theft, market euphoria, and privacy issues, on the other hand, will always exist. As history has shown, new technology can cause irrational exuberance, resulting in overvalued securities and, eventually, a financial collapse.Nonetheless, new financial technology is still in its infancy and can be prohibitively expensive. However, with new innovations and proper application, financial technology can be the key to effectively managing one's money.