Traditional banks are well known for their lengthy queues and neverending bureaucracy. Unlike these banks, online mobile banking allows customers to open new accounts, perform transactions, and do many other banking actions online, within seconds.
That’s why the development of online banking apps like Revolut have gained momentum recently. Launched in 2015, Revolut grew to 350,000 active daily users in only three years. This person-to-person platform is now valued at $5.5 billion.
So, the development of a money transfer app can be very beneficial and profitable. In this article, we will show you how to build a successful money transfer app.
What is a Money Transfer Software?
A money transfer app is a system enabling its users to perform banking transactions using cashless modes of payment, with multi-bank and multi-currency options. Moreover, such an application, unlike traditional banks, is available at any time.
A money transfer app like Revolut is considered “neobanks”. Neobanks operate exclusively online and do not have any physical branches, allowing them to provide their customers with the fastest digital and mobile financial solutions, and allowing customers to pay, transfer, or lend money online.
The Revolut app is among the top money transfer apps worldwide and was founded in 2015. In the 5 years since then, it is clear that the idea of neo-banking and money transferring software is a popular, profitable, and growing industry.
Every day, the demand for money-transferring services continues to grow. Transaction value in the Digital Remittances segment is projected to reach $55.68bn in 2022 with an annual growth rate (CAGR 2022-2026) of 7.24%.
Building a money transfer app?
Step-by-Step Guide on Building Money Transfer App
Now, let’s talk about the steps required to build a money transfer app.
At Sloboda Studio, we recommend starting the P2P money transfer app development process with the discovery phase.
The discovery stage includes competitor and market research and client interviews. Discovery helps to determine the core and unique features need for the app, as well as the optimal tech solutions needed for these features.
Building a User-Friendly UX Design
After conducting the discovery phase, start to build a user-friendly UX concept and product prototypes. Remember that your money transfer app is going to be used not only on desktops but also on tablets and especially smartphones. Thus, your product has to be adapted to various devices.
Money Transfer Software Development
Before the development of an app like Revolut, let’s start with the basics. Money transfer systems provide their users with such functionality as:
- Ability to manage different types of transfers
- Support for multiple countries, languages, and currencies
- Integrated security and privacy standards and regulations
- Availability of several money transfer options, such as online and mobile transfers
- Integration with fraud protection software and anti-money laundering software
- Transaction fee tracking
- Foreign exchange software integration
During the development stage, your team will work on the integration of all the core features. Remember, it’s also necessary to integrate user management modules into the app. This allows administrators to be able to manage user information to better assist the clients. Also, using the user management module, it is possible to assign various rights and roles to users.
We recommend using Agile principles and working in sprints when building the app. Such an approach will allow you to meet regularly, see the results of your work, fix any issues, and discuss further development plans.
Another major decision to take when building the app is whether it should be built from scratch or use app builders like with ready-made features.
As with any banking app, your money transfer application requires the highest security to establish the safety of your customers. Consider taking advantage of identity verification.
Services such as Anti-Money Laundering (AML) and Know Your Customer (KYC) help companies to verify users and prevent fraud. It is also highly recommended to include counter-terrorism financing compliance.
If you are just starting the development of a fintech app like Revolut, consider compliance with basic but necessary security options, such as data encryption, backups and recovery, limited access to certain parts of your system, and session time limits.
Types of Money Transfer Software
Nowadays, money transfer software can be divided into two main categories:
- Outward Remittance – when the money transfer occurs outside the borders of your country. For example, transferring money from your account to the account of a vendor overseas.
- Inward Remittance – referring to money or funds received from overseas or a different country. For instance, getting paid by a client who leaves in another country.
Money transfer apps can also be classified based on the needs of your business. That is why you need to have a good understanding of your business requirements before building the app:
Person-to-Person (P2P) Payment System
A P2P payment app allows the transfer of funds from one individual to another using a trusted payment platform. These types of payments are done with the help of personal computers, smartphones, or tablets. In addition, an internet connection is required for the payment to go through. One of the most used P2P payment systems is Cash App.
CashApp Home Page
Business-to-Business (B2B) Money Transfer System
B2B is an online method of payment between businesses. This type of transaction often occurs when a business needs the products or services of another business. A good example of a B2B payment solution is Stripe.
Stripe Home Page
Digital Remittance Services
Digital money transfer apps are gaining popularity in developing countries. People can now easily transfer money to others for a small fee based on the transaction sum. This has made it possible for people to obtain goods and services easily without needing to worry about heavy bank charges and lengthy processes. One of the best digital remittance services is Wise, which is used by millions of people worldwide.
Wise Home Page
Electronic Bill Payment Services
Electronic bill payment services have made it possible to pay bills online from anywhere in the world. Here, users can use the application to transfer money from their personal credit or debit cards to vendors. In the US, Prism is the go-to app people use for bill payments.
Prism Home Page
Reasons to Create Your Custom Money Transfer Software
Based on the data obtained and the number of money transfer applications, the question pops up – Why should businesses create a money transfer application?
Everything is moving online
Our modern world is changing: people have less time to stay in one place for too long. Everything is moving online and becoming more mobile.
Why use an old-fashioned bank with its physical branches and queues?
A better option would be to use a smart mobile app that allows people to transfer money and make other payments.
Banking digitization makes it easier to use money transfers and online payments. But that’s not all.
Money transferring software like Revolut also allows its customers to use such expanded functionality as insurance, blockchain, cryptocurrencies, splitting payments, or virtual saving accounts — all within a single mobile application.
Growth of demand
It’s been 7 years since Revolut was born. Since then, many neo-banking applications have appeared, and many vendors have started building a peer-to-peer payment app infrastructure. These days, you can see that the demand for fast payment has grown significantly and still prevails over the supply.
Online banking for business needs
Nowadays, money transferring software can be used not only by individuals but by businesses, too. The development of a mobile money transfer app can come in handy not only for regular customers but also for businesses. This makes a great opportunity for building new business collaborations and continuing to grow the neo-banking segment.
10 Must-Have Features Of a Money Transfer App
Before companies know how to create a money transfer app like Revolut, it’s crucial to define the core features.
This feature is needed to provide your future customers with the ability to pay bills at any time and from any place online. Paying bills is always seen as a burden. This feature will help give your product an additional competitive advantage and attract new customers.
Splitting and paying bills with Revolut
E-wallets can be online mobile service or app that allows users to make electronic transactions.
When integrating such a wallet, users can interact with the service and pay contactless in every country they visit without having to create multiple bank accounts each time.
Revolut cryptocurrency wallet
Online ID check
Online ID verification is a process that helps to check whether your app interacts with a real person. An online ID check also ensures that your users are who they claim to be. Such a process prevents your product and your customers from any kind of fraud.
Adding an online ID check as an account confirmation stage helps you make your own peer-to-peer payment system safer for your customers. It is helping them to feel more protected. We recommend integrating automated verification requests and setting money limits.
Revolut ID Verification
A payment statistics system is a set of features that helps to visualize all the user’s transactions by such criteria as volume, status, receiver, or even country.
These features are especially good for those users who like managing their finances. Therefore, your mobile platform will be more convenient and user-friendly, attracting new customers, and making their experience smooth.
Revolut payment statistics
Notifications and alerts
Any notification is important. It allows you to inform your customers about all the actions within their banking accounts. For instance, you inform people about the status of their transactions, payments, or monthly subscriptions.
International transfers and currency exchange
Traditional money transfers can be long, delayed, or require exorbitant fees.
Moreover, though international transfers aren’t new for modern banking, traditional banks often demand that clients visit a physical branch to conduct a transfer. Integrating online transfers and exchanges to a banking mobile app account would enable users to send and receive their money within a few seconds and swipes.
Revolut currency exchange
If you just start to create a peer-to-peer money transfer app, you can use a single language. It’s enough for MVP goals – for example, to represent your product to customers and investors.
But at later stages, it is worth considering adding multiple languages to a user account. This would help you grow and expand worldwide, attracting more new customers in each country.
Revolut multilingual interface
The support isn’t actually a feature. It is a system of features that guarantee your customers can get help when they have questions or problems.
Your support system should include at least live chat, email, or call features. However, online chats remain the most convenient choice. Your customers can get the fastest support by asking a question in the mobile in-app chat.
When it comes to fintech products, and especially for mobile online banking, it is essential that users feel protected when using a product. The support features gradually increase users’ sense of security and encourage them to use the software more.
Revolut customer support
Integrations are required to connect with other world banks and money transferring systems via API and other protocols.
Money transferring mobile app can be connected with different banks your customers use. So they can control their funds using your app.
In this way, your customers can access their assets in different places around the world by using your money transfer app. For example, ICICI Bank offers an API for open banking between banks and customers.