Undoubtedly, sending money today is significantly easier than it was in the past. A few taps, a swipe, maybe a face scan, and boom, cash is transferred.
Thanks to fintech apps like Cash App, Venmo, and Zelle, we’ve come to expect instant, secure, no-fuss money movement. So, it’s no surprise that entrepreneurs and startups are racing to build the next big P2P payment app.
But building one that works flawlessly, securely, and at scale? That’s a whole different game.
As a top mobile app development company, we helped multiple startups launch secure fintech apps. We’ve seen firsthand how a few missteps in planning or development can stall growth, or worse, invite legal trouble.
If you’re building a mobile payment app in 2025, here are the biggest mistakes you need to avoid, along with practical advice on how to steer clear of them.
#1. Treating Compliance Like a Post-Launch Task
We get it. When you’re excited about features and UI designs, things like KYC, AML, or GDPR might feel like roadblocks.
But trust us, compliance isn’t a checkbox; it’s your ticket even to enter the game.
Why This Matters?
If your custom fintech mobile app allows users to store, send, or receive money, you’re entering a regulated space, which means:
- You may be treated as a Money Service Business (MSB).
- You must comply with PCI-DSS if you handle card data.
- You’re responsible for data privacy under laws like GDPR or CCPA.
- You could be liable for fraud or money laundering, even if it’s done unknowingly through your platform.
Skipping this upfront planning could cost you your fintech mobile app development and your reputation.
What to do instead?
Involve legal and compliance advisors early. Build your app architecture with compliance frameworks baked in, not bolted on. At TechRev, our fintech app development team includes pre-vetted modules for KYC, transaction monitoring, and data privacy from day one.
#2. Weak Authentication = Open Invitation for Hackers
Let’s be real, P2P payment apps attract bad actors like moths to a flame. One of the most dangerous fintech app security issues we see is weak login flows.
If your custom fintech mobile app lets users log in with just an email and password in 2025, you’re already outdated. And vulnerable.
How can you fix it?
Implement a layered login system that includes:
- Biometric authentication (Face ID, fingerprint)
- Multi-factor authentication via OTP, authenticator apps, or push approval
- Device-level trust scoring—think about only allowing transactions from registered or verified devices
- Transaction PINs or passcodes for added protection
Every layer adds friction for hackers, but keeps the experience smooth for legit users.
Also read – How to Develop a P2P Payment App Like Cash App? Click Here!
#3. Storing Sensitive Data Locally
Here’s something that still shocks us: new fintech mobile apps storing card numbers, personal IDs, or transaction histories in local storage or insecure caches.
Why is this dangerous?
- If a device is lost, that data can be pulled.
- If a hacker gains access to the local file system, they can scrape sensitive data.
- It violates PCI-DSS and app store policies; your app could be suspended.
Solution – Use secure tokenization, encrypted APIs, and cloud-based secure vaults. Any form of user data stored locally should be encrypted, ephemeral, and non-identifiable.
#4. Overlooking Real-Time Feedback in Transactions
Trust in the transaction moment.
When users send money and:
- The screen hangs
- There’s no “Success” or “Failed” feedback
- They don’t get instant transaction history updates
They panic. And they uninstall.
What do users expect?
- Instant push notification after a transaction
- Real-time transaction logs synced across devices
- An easy-to-access “support” button if something goes wrong
Start your fintech mobile app development with WebSockets or real-time frameworks that keep transaction status synced across the app and server.
#5. Not Having Fraud Detection From Day One
Let’s talk about something fintech teams often ignore until it’s too late: fraud detection.
P2P apps are highly vulnerable to:
- Fake users using stolen IDs or spoofed phone numbers
- Bots executing mass micro-transactions
- Dormant accounts are getting hacked for laundering
If your custom fintech mobile app doesn’t flag anomalies, you’ll attract fraud, and regulators will come knocking.
Your Options
- Implement rule-based transaction monitoring (flagging large sends, new devices, multiple failed attempts)
- Use AI-driven behavioral analytics to detect unusual patterns
- Integrate ID verification tools during onboarding.
At TechRev, we help fintech businesses integrate scalable, privacy-safe fraud detection solutions that evolve with their user base.
Also read – AI in Fintech: Top Use Cases and Benefits You Can’t Ignore! Click Here!
#6. Prioritizing Features Over UX Simplicity
More features ≠ , better product. Especially in payments, simplicity wins.
We’ve seen apps with budgeting tools, referral bonuses, and investment dashboards all shoved into one screen. That’s overwhelming for a first-time user.
What Works?
- Clean, minimal flows (Send – Enter amount – Confirm)
- Clear labeling of fees or payment status
- Fast onboarding (no 8-field forms, please)
- Light, intuitive design with zero jargon
#7. Launching Without a Business Model
Many founders go all-in on building a slick P2P payment app., but completely forget to ask: “How will we make money?”
This mistake can quickly deplete your burn rate. You’re paying for cloud servers, SMS OTPs, and support reps, but without a monetization model, you’re just giving away free tech.
Sustainable Revenue Ideas:
- Take a small fee for instant withdrawals
- Offer premium services (e.g. business transfers)
- Partner with merchants for embedded payments
- Add cashback or loyalty programs and monetize affiliate deals
Building a custom mobile wallet app? Great. Now build a business around it. Contact Us Here!
Conclusion
P2P payment apps may seem simple on the surface, but building one effectively means aligning security, compliance, UX, and strategy from day one.
In this industry, you don’t just need good developers; you need the best fintech app development company that understands the fintech industry.
At TechRev, we build custom, secure, and scalable P2P payment apps like CashApp that tick every box from user onboarding to SOC 2-level compliance. Whether you’re launching an MVP or rebuilding an existing platform, we’ll help you avoid the costly mistakes others have already made.
Have an idea for a P2P payment app? Let’s build it right the first time.