How to Develop an P2P Payment App like Cash App?

It is no secret that fintech, or financial technology, is one of the world’s largest fields. Today, the fintech industry is worth approximately $180 billion.

The growth of the industry is mainly credited to rising start-ups. The number of fintech start-ups has more than doubled in two years. In addition to this, Venture capital investment has consistently topped $40 billion per year.

With the rise of fintech, online payments have also become more prominent. Business Wire’s reports show that the value of contactless payment transactions is expected to reach $10 trillion by 2027. The global fintech market is also expected to reach $211.64 billion by 2027.

It is safe to say, these numbers are huge. Companies within the industry are making a lot of revenue; by a lot, we mean billions. One such platform is Cash.

Being one of the top online payment platforms based in the United States of America, it has made hefty revenue. And it is safe to say that this online payment app and the industry, in general, have attracted a lot of people to start their own fintech company.

As such, North America is responsible for more than half of all fintech VC funding. There are many more that are looking to get into this. This is why everyone wants to know, “How to Build an App like Cash?”

Well, if you are someone who wants to start a fintech business, this blog is for you.

Here, we shall be discussing everything related to Cash App development and the cost related to the same. So with that being said, let’s get right into it, starting with…

Market Stats for Cash App

Now, before we discuss the what, why, and how of Cash App, let’s first see what makes everyone want to create a P2P payment app like Cash App.

Here are some e-wallet app statistics that show the market dominance and growth of Cash App:

• In 2022 alone, Cash App made $2.68 billion in revenue.
• The U.S. user base of the Cash App has increased by 3% year-over-year. The company was reported to be worth 47.8 million in 2022.
• Around 76% of Cash App’s revenue comes from Bitcoin, making it one of the best Bitcoin trading apps out there.
• Cash App users have stored around $1.7 billion. This shows the trust users put in this fintech solution.

With that out of the way, let’s take an overview of the Cash App.

What is Cash App?

Cash App is a digital payments app that allows users to send and receive funds on their smartphones. The application is a game changer when we talk about contactless payments and online transactions, as it allows instant settlement and even works as a peer-to-peer payment app. The application is primarily used in the USA & UK.

The application’s primary functionalities revolve around both payments and banking services, where a user can send and receive p2p payments and manage their accounts.

The application also features an investment section from where a user can directly manage and invest in stocks, cryptocurrencies, & ETFs.

The application works quite well and is easy to use even for first-time users. In case you are wondering how it works, check out the next section!

How Does Cash App Work?

So, how does the Square Cash App work?

Well, it works like any other fintech app solution. We will be going through the working process of the app.

It is, as mentioned below:

1. Download the app from the App Store or the Play Store. Once it is downloaded, we can move to the next step.
2. Open the app, and the first thing you need to do is register. This can be done via various methods.
3. Now that those users are on the platform, you can add contacts that are already using an app that will enable the user to send money.
4. Here, the user can add various payment methods to the platform. In addition to this, it also comes with eWallet integration, which makes payments that much faster and easier.
5. Once everything is set up, you can send the payment with just one click.

How to Build a Mobile App Like Cash App?

Well, mobile app development isn’t exactly rocket science, but it isn’t all that simple either. You see, it is a long and complex process that takes you through various steps.

Now, if you want to create a leading eWallet app that helps you generate amazing revenue, you need to understand the process. To help you do just that, we shall be going through the entire development process of the eWallet app.

So with that being said, let’s get right into it:

Step 1: Ideation

The very first thing you need to do is have an idea.

Without a proper idea of what you are going to develop or what you want the solution to be, you are just wasting your money.

Therefore, the first thing is ideation. Coming up with an idea can be a bit difficult. You can take inspiration from existing solutions, use market data, find a problem people are having and solve it, and so on.

Nevertheless, once you are done with ideation, it is time to move to the next step of the mobile app development process.

Step 2: Research

Mobile app market research allows businesses to collect information regarding the market they are about to enter. This also lets them have an insight into the market and what to expect.

In addition to this, they can also prepare accordingly and check whether or not it is worth it. Therefore, with this being said, there is no doubt that it is one of the most important processes of the entire development process.

Step 3: Choose Platform & Tech Stack

Since we are talking about building an app like Cash, it goes without saying that we have to choose a platform.

As we all already know, there are two major choices when it comes to the platform. Namely, Android and iOS app development services.

Both are good in their own right, and the result highly depends on your platform specifications. If you want, you can also go with the cross-platform option.

Moving on, you also have to choose an e-wallet tech stack. For those who aren’t familiar with the term tech stack, it refers to the set of techniques used for mobile app development.

Step 4: Create an MVP

Once you hire on-demand app developers, it is time to create an MVP app.

The name refers to the minimum viable product, which is a bare-bones representation of the app with basic front-end features.

This lets you have an insight into the product you will be developing.

Step 5: Front-End Development

With all that said and done, it is time to start the development process. The first thing you need to deal with is front-end development.

As the name suggests, here the developer’s team will be creating an e-wallet app design that attracts customers. Moving on, we shall be dealing with back-end development in the next section.

Step 6: Back-End Development

This is the part where the real Cash App development takes place as the team of developers writes the source code of the application.

This is the most time-consuming process by far. That is why it is highly recommended that you maintain good communication with the development side throughout the process.

Step 7: Testing & Deployment

Once the final version of the app is created, it’s time for mobile app testing.

QA team uses different tools and techniques to check bugs and errors. Once this is done, the app is deployed.

Now, if you hire an Android app developer or an iOS one, the process will be a little different. This is something that you should consider.

Step 8: Maintenance

With all said and done, it is time to start the maintenance of your app.

This is the entire development process for an app like Cash. Moving on, we shall be discussing the costs related to the same.

Here, you can also start the mobile app marketing process.

Features to Include While Developing an App like Cash App

• SSL Security
• Multi-Currency
• Electronic Payments
• P2P Payments
• Invest your Money

Monetization Model of Cash App

Why not hire dedicated developers and invest money to build an app like Cash? This can help your business grow while generating a lot of revenue.

Focusing on the latter part, how do eWallet apps make money? The answer is that there are multiple eWallet app monetization strategies.

Cash App is a market-leading platform that has more than one revenue stream. You can follow the same or come up with your own ones. Nevertheless, these are, as mentioned below:

1. Partnership Commission

One of the top monetization strategies used in online payment applications since there are a lot of businesses that rely on these platforms.

Now, this is a method that can generate a lot of revenue when done right. Therefore, this is something that you should consider.

2. Premium Subscription

There are many platforms that require a user to subscribe in order to access the premium version of the application. These are called subscription-based apps.

While not as popular with fintech apps, this is a good monetization strategy that has helped a lot of people generate amazing revenue. Moving on, let’s look at the next monetization method.

3. Advertisement

This was going to appear on the list sooner or later.

Well, every platform uses advertisements in some form or another. And it is safe to say, this is one of the most popular monetization strategies. So, consult your on-demand app developers to include the same in your solution.

4. Transaction Fee

Being a fintech platform, Cash App often charges its customers a transaction fee on every money transfer they make.

This isn’t all that much, but multiplied by the number of users, it makes millions for the platform. Speaking of which, the platform charges 2.75% per card-based transaction and 3.5% + $0.15 for each non-card transaction.

5. Transfer Fee

If you want to add money from your bank account to the in-app wallet of the platform, you have to pay a small fee.

The fee is just 1.5%. But then again, having a uniform throughout the platform has become one of the major revenue streams. Therefore, this is something that you should definitely consider doing.

6. Crypto-Trading Commission

In addition to being an e-wallet application, the Cash App also doubles as a crypto-trading app.

Since cryptocurrency is growing popular and a lot of people are trading it these days, charging a commission on every purchase is a top monetization method.

As such, the commission is around – 1.76%.

These are the different monetization methods of the Cash App that you can use in your solutions. Moving on, we shall be going through the development process for the same app

How Much Does It Cost to Develop an App Like Cash?

How much cost to develop a payment app like Cash?

The average cost of Cash App development ranges from $25,000 to $100,000.

The cost to build an e-wallet app is based on several factors. This includes various factors like complexity, feature set, platform, size, tech stack, and so on.

Despite the various options, the majority of top companies opt for app development outsourcing when they want to build an app like Cash.

The reason is that there are various benefits to this. Speaking of outsourcing to an eWallet App Development Company, this brings us to our next point…

How Nimble AppGenie Help You Build An App Like Cash?

Do you want to create an eWallet app?

Nimble AppGenie is here to help you. We have hands-on experience working on market-leading fintech solutions, including CUT wallet – a revolutionary eWallet application.

As a market-leading Fintech app development company, we have the right tools as well as the technology required to develop a money transfer app like Cash App.

If you have an idea, we can turn it into reality.

Conclusion

There are a lot of investors who want to develop an app similar to Cash App.

As we saw in the statistics section, Cash App and other platforms like this are generating millions of dollars each year. And the demand for such apps is only growing.

You can make an app like Cash for yourself with a unique value proposition that can take the market by storm.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.