The consulting company Pwc has estimated that the P2P lending industry will rise to $150 billion by 2025. This also pushes many professionals to make a robust peer to peer payment app development. The technical professionals also play a significant role in the same.
P2P lending – A brief introduction:
P2P lending is defined as a money lending process in which creditors and borrowers perform equally. In this mechanism, there is no role of credit brokers, banks and other financial institutes. This kind of process is carried out on the internet and a business relationship is established there.
The main benefit of this process is the low interest rate and profit of investors is also good. The fact is that banks consume a lot of profit from investors.
How to build a P2P lending platform?
Before proceeding ahead in building a P2P lending platform, you must ensure the regulatory requirements in your country for digital lending.
You must start with legal prep work as early as you can so that you can launch the P2P lending business to the market.
To develop a custom P2P lending platform you can connect with in house offshore remote developers or you can connect with a software development partner. This will help in making the technological aspects strong.
Here are some steps to create a P2P lending platforms:
Business registration form:
The first step is to register and enrol the company legally. As compared to LLC, there are more requirements in the registration for the corporation. The profit and loss are distributed as per the share of each participant’s ownership.
Registration of the company name:
The registration of the company will be done in that state where the business has to be run out. There are certain parameters for this concept which are as follows:
- The brand name should differ from the domain name
- The registration rules can vary from state to state
Registration of the platform domain:
The domain is the address of your website. The main rule of a good domain is to be short and readable easily. The other rules are as follows.
Domain and company name should be unique. You must also check about the free and or paid from Google.
For domain registration, there are some investments applicable.
Creating the team:
The choice of team members should be done seriously because it is the main success factor. There should be the incorporation of the following guideline.
Shatt needs to be mapped with those persons who know how to operate the website. Additionally, they should be experts in financial law, finance, and advertising and marketing. Also, you must hire people for the long term.
It is always better to hire people from other companies. This is because they carry the required experience and skills.
Save the money for start-up capital:
If you expect that P2P investor will quickly come to your site then you might be wrong. To collect the money you can do the following things.
Way to build a p2p payment app:
It is quite easy to develop a P2P payment app but certain parameters should be followed to make it secure. This is of utmost importance to gain the trust of people. Some of the key features to integrate into the p2p app development are as follows:
Transaction notification:
The moment the payment is done the user must get a live notification in their wallet. These notifications can also include discount, special offers and bill due date.
Secured digital wallet for users:
A secured digital wallet is important to store various information like discount cards, offers, card details and bank details.
Unique ID/OTP sending:
Users should get a unique One Time Password for every transaction. It is quite important for security reasons. Some of the service providers of P2P payment ask for the OTP on every transaction.
Billing and generation of invoice:
The process should enable the user to scan and send the bills with peer to peer payment app. The user should also be able to generate transaction invoices.
Secured bank transfer:
The mobile payment p2p app should enable the user to send the amount to their respective bank with the secured mechanism. Some of the users are in the habit to do this process.
Core features of P2P lending platform development:
Loan calculator:
To explain all the profit and risks in the business loan calculator is an excellent tool. Visitors can easily check the monthly instalments as per the amount, interest rate and period. To make it convenient you should integrate the calculator on the homepage.
Auto investing:
With an auto-invest feature, a user can easily diversify the portfolio fast. With this option, backers can easily create the portfolio and generate +12-13% of the return per year.
Secondary market:
For investors, the secondary market is super beneficial because, with the incorporation of it, investors can get more profit from buying and selling the investment.
ISA/IFISA support:
The full form of IFISA is Innovative Finance ISA accounts that allow the investors to participate in the peer to peer loan.
Conclusion:
For running a successful P2P business there is a great requirement of a robust solution. Every enterprise may take the help of technical professionals to gain high-quality P2P app development. In the future new advanced features will take place to make P2P lending smooth, fast, efficient and secured.
Author Bio:
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading fintech solution providers USA, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.
