If peer-to-peer payment systems (P2P or person-to-person) are making their way to your financial institution or tech company, you may wonder just how it will impact your business. You likely already know how convenient the addition of this payment option will make life for your valued customers, which of course is critical retention, given all the competition. However, you also need to know what it means for your business in the short-term and the long-term.
P2P Payment Systems Are Not Directly Profit-Oriented
Your customers will love P2P payment systems—if in fact they don't already use another service—because they are free, which means that you are adding a service where there is no upfront money to be made from facilitating these transactions, notes Business Insider. Your adding this free service is where customer retention comes in—especially among the extremely tech-savvy millennials and others eager to adopt the latest technologies—but you may have additional reasons as to why you are choosing to adopt and implement this new service that will affect your long-term profits.
Whether you are creating an app as a tech firm, a financial institution, a social media platform, or as a bank simply facilitating transactions for your customers, you definitely stand to gain when adopting peer-to-peer payment systems.
Banking institutions have the chance to serve customers where they are in their busy lives, and in terms of their individual banking needs, saving them time and energy when trying to use this powerful solution to exchange money in an instant and without stress. Technology companies and mobile app developers have a unique opportunity to make a play for the ecommerce market and work with advertisers. As for social messaging apps, the more time users engage with the platform, the better.
Everyone involved with P2P payments wins when focusing on the investment and commitment to developing a high-quality mobile app, specific to their customers' needs, and all the services that come with it.
Everyone Faces Potential Security Risks with Peer-to-Peer Payment Systems
Like any online financial services you provide for your customers, your peer-to-peer payment systems will require special information security measures. Performing the appropriate due diligence checks before going live with your new P2P app since you are leveraging the security of your entire computing system to secure a P2P customer's request, according to Bank Info Security.
So far, different services use their own approach to building solid person-to-person security. Apple users, for example, are able to sync Messenger P2P payments with their Apple ID or fingerprint authentication while Venmo users must log into their account before making or receiving any payments. Working with your IT team and your legal and compliance experts, will help you fortify your computing environment to support your P2P system.
P2P Payment Services Will Take Preparation, a Great Team and Consideration for Your Users
Preparation for adopting and implementing P2P payment services is critical, and it starts with building the right mobile app to align with your business practices while providing a simple and effective experience for your customers.
Build Your P2P Team
Your P2P team will drive this project to success, so make sure you gather available in-house talent, or reach out to a staffing agency that hires professionals in information technology, legal and compliance, and accounting and risk analysis. Your team will work in tandem from the inception of the project and long after its launch to ensure a fully functioning and satisfying person-to-person payment system.
Think About Your Potential P2P Users
While it is nearly a guarantee that millennial customers will use your app, make sure it is friendly to customers at every level since more mature customers are using this service.
Develop a Marketing Strategy for Your Person-to-Person Payment System
You will need to launch a solid marketing campaign for your person-to-person payment system. Your customers need to know this service exists and what it can do for them that other P2P apps cannot. Work with your in-house marketing team or hire a professional local marketing firm to help you get this service off the ground.
Minimize Upheaval to Your Organization by Enlisting the Right P2P Team
At ICS, we regularly work with companies adopting and implementing new practices and technologies that stand to change—or at least temporarily shake up—multiple aspects of their business. If you are trying to determine the dynamics of your multi-departmental P2P team, we want to help.
Contact to discuss what type of talent you need to round out your P2P team to help keep your project on track to strive for only positive impacts.