Peer-to-peer (P2P) payment apps have made transferring money easier than ever, whether you’re splitting a bill, sending funds to family abroad, or paying for everyday expenses. Their rising popularity is largely due to their convenience, allowing users to complete transactions with just a few clicks.

Choosing the best P2P payment app can be overwhelming given the many options available on both Android and iOS. But what essential features should a P2P payment system have? And which apps are the top choices for secure and seamless money transfers?

Essential Features of the P2P Payment System

Payment app development should include the following elements to provide consumers with the highest quality possible.

• User digital wallet
• Send invoices
• Send money
• Transfer to a bank account

Global P2P Payment App Market

In 2020, North America accounted for approximately 34% of the global P2P payment market, marking significant growth in the industry. The U.S. has become a hub for innovation in digital payments, with apps like Square Cash and Venmo gaining traction, particularly among younger demographics.

Following its acquisition by Early Warning Systems, the restructured ClearXchange network reflects a shift back toward institution-led payment solutions, competing directly with non-bank alternatives.

Payment app market forecasts

Industry forecasts suggest that the Asia-Pacific region will see a Compound Annual Growth Rate (CAGR) of about 22% in the coming years. The region currently leads the world in mobile P2P money transfers, driven by a massive and growing base of internet users in developing countries. GSMA reports indicate that smartphone adoption in Asia-Pacific will surge significantly, fueling this expansion. Increased disposable income and government-backed initiatives promoting digital transactions further accelerate mobile payment adoption.

Top 5 Peer-to-Peer P2P Payment Apps

The following are some of the best money transfer apps:

PayPal

PayPal enables users to send money for free when using their PayPal balance or linked bank account. However, transactions made via debit or credit cards incur a 2.9% fee. Recipients must have a PayPal account to receive funds, which can be instantly converted into different currencies. PayPal also offers a unique URL feature, allowing users to request payments conveniently.

In the first half of 2021, PayPal was downloaded 56.6 million times, making it one of the most widely used P2P payment apps worldwide.

Venmo

In addition to facilitating transactions, users of Venmo may also use the service to buy from a small number of online retailers. There are no fees when you utilize a connected account, card, or Venmo balance to make a payment. The recipient can keep the money in their Venmo account or withdraw it to their account.

Android users may use Gmail or messaging to make and receive monetary transfers. Google Pay is a P2P program that, like others, lets you connect your account or card.

Zelle

More than a hundred financial institutions, including banks and credit unions, are now offering Zelle’s P2P payment service to their customers at no cost, thanks to the company’s partnerships. If you already have an account with a bank that supports Zelle, all you need to get started is a few clicks. To use Zelle, you’ll need to download the app, even if your bank is a partner. Use an electronic mail address or cell phone number to transfer money to a recipient. Instructions on accessing the money if the recipient still needs to become a Zelle user will be included in the payment notice.

Zelle handled $436 million in transactions totaling $120 billion, and as the P2P payments industry grows, it may focus on small companies to increase its market segment and revenue.

Google Pay

Instead of using two separate apps_Google Pay Send for sending money to other people. And Android Pay for near-field communication_this, one takes care of everything. The app’s compatibility with iOS, and Android. And the web gives it an edge over Apple Pay and Samsung Pay in terms of the user base. Like Apple and Samsung, Google Pay supports near-field communication (NFC) payments at various locations and you can use them with a smartwatch.

According to Enlyft, Google Pay commands a global share of 2.97 percent of P2P apps.

Remitly

A further option for sending money abroad is the app Remitly. You may transfer in United States dollars or the recipient country’s currency. Transfer fees fluctuate based on variables, including the amount sent and the current exchange rate.

The time it takes for the recipient to receive the money may also differ. Use Remitly’s economy service, and the money should be in the receiver’s bank account within five business days. If you need your money quickly, you may use an expedited transaction.

In 2021, Remitly reported a 70% increase in send volume, rising from $12.1 billion in 2020 to $20.4 billion.

Final Thoughts

A few of the most common choices are outlined above; they all allow for speedy transactions with little or no expense. However, some of the top P2P programs may also provide bonus features. It could be possible to divide the cost across your group of pals. This is helpful not only for group dinners but also for splitting the tab at home.