How Much Does It Cost to Develop A Mobile E-Wallet App Like Venmo?

How Much Does It Cost to Develop A Mobile E-Wallet App Like Venmo?

Before you dive right into the world of “how to make an app like Venmo?”, you need to fully understand what p2p mobile payment service is.

P2P is a mobile payment system that allows users to rip the benefit of amazing features that traditional banks do not provide. Unlike the world banking system, the p2p mobile transfer uses cutting-edge technology. It provides users to transfer money using the press of a single button, hassle-free and risk-free.

They are such a simple system that you can use not just for business transactions but also for small tasks like dividing the bills with friends and family. The main goal of the p2p system is to provide an atm free, bank terminal free payment system.

With almost 30 million users of the p2p system alone in the united states, the potential growth of the industry is sky-high. But due to this overwhelming popularity, there is plenty of p2p systems available for people to use.

But today we will be going to focus on the number one p2p payment marketplace named Venmo. So, without any further ado, let us dive right in and figure what a mobile e-wallet app like Venmo is all about.

The history of Venmo

Back in the early 2000s. people were getting frustrated dealing with complicated procedures to make small money transactions. This created the idea of a simple and handy tool that can be used for handling transactions. And that idea is the reason behind the creation of the app Venmo.

It was created by two University of Pennsylvania students. One of the friends visited the other on weekend and didn’t have a wallet with him that day. So, the other friend covered his expenses for the whole weekend. And when it was time to leave, he got a check from his friend to pay everything back.

This made them think, the system seems silly. And they should have something that they can use on their phones to do this simple transaction.

Venmo was bought by a company named Braintree back in 2012. And this is when the app went through proper development and exposure. The development team and Braintree worked on the social aspect of the application. This through the development and strategy implementation made it one of the most popular apps within the millennial’s circles.

Braintree was later bought by the famous PayPal. And the CEO of PayPal took this no-name app and made it a giant in the mainstream frame.

With the exponential growth of Venmo, it quickly reached a payment volume of over 25 million USD in 2019. The app is the crown jewel of the PayPal empire.

In 2018, the app processed over 62 billion dollars in the payment, which was an astounding 79% increase from the previous year.

How much time does it cost to make an app like Venmo? Features included.

How much time does it cost to make an app like Venmo Features included.

The journey of Venmo is truly an inspiring one. And because of this unparalleled potential, many new and also veteran entrepreneurs. But starting a project like this may confuse where to start from. That is why we have come up with the total path of development to showcase each step of the process one after another.

There is no magic number that is perfect for creating an app. But many factors are at play that determine the overall cost of the app.

Here is a way that most app developers calculate the cost of building an app. The formula is,

Overall cost = Hourly effort * Hourly cost.

That means the more time it takes to make the app, the more the development cost of that app will be.

So, let us check out what factors and features to include in an app like Venmo.

Money Transfer

Let’s start with the most obvious things first. And that will be the money transfer feature.

There is no point in making a p2p application without a potion to send money over the mobile phone. Just like Venmo, you will need an option to transfer money to another. This includes paying bills for repetitive and regular services.

That means your application must have a model that can handle digital payment, a self-included e-wallet system. So, when a user makes a transfer, the money will go into the e-wallet and then be sent to its destination path.

The estimated time for development is 350 hours.

Bank account linking (Optional)

If you want to push through the ranks of p2p applications, then having an option to link bank accounts will go a long way. To create an app like Venmo, you don’t necessarily need to link a bank account. But having one will make your app stand out from the rest and give you an edge.

This option will allow the user the ability to select the path on which they want to manage their transactions. You can also fully rely on the built-in fully integrated e-wallet.

The estimated time for development is 150 hours.

Purchasing Capability

Another big issue that your developers will have to deal with is the implementation of purchasing capabilities.

Even though Venmo was first created to be one-of-a-kind tools to handle the small transaction through e-wallet, it has opted for many other services. And one of the vital services is the ability to make purchases online using Venmo. So, if you want to make an app like Venmo, you will have to make agreements with various merchants.

The implementation of this process takes a bit more time than the other. But once the app is established, getting various merchants on board will not be an issue.

The estimated time for development is 400 hours.

Bill Split

The most exciting and fun aspect of an app like Venmo is its split bill option. It makes the payment much simpler when more than one participant is contributing.

Let’s say you and your friends are going out to grab a bit. And you guys ordered a huge meal with mutual purchase. Now one of you has to pay the bill through the app and make a request to the participants to contribute. The participants will have the option to accept or cancel the request. Once they have accepted, the one who made the payment will get refunded for their share.

This is a very useful and handy tool to have. And it is one of the main ideas that created an app giant like Venmo in the first place. So, having this in your arsenal through your app is a must.

The estimated time for development is 200 hours.

Access to the Contacts

The main purpose of an app like Venmo is to make transactions with anyone you know. So, it is essential to have access to its contact list.

This means you will not have to meet the person you want money from and get the check. You can simply request payment to anyone on your contacts and send the request without any hassle.

The access to the contact allows this to happen. Every recipient will have their unique card number. So, you will be doing is selecting the person from the contacts. You can also let the app get Facebook contacts if permitted by the user.

This results in better management of money through the app for friends and family.

The estimated time for development is 100 hours.


For the app to be as versatile and trusted for use as Venmo, you will have to implement a history setup. This can simply analyze the financial state and previous transaction for the p2p app.

This will help the user to have a better grasp of their spending and transaction. It is highly advised to let the users see the history with graphs. As it seems more user-friendly from the get-go.

And helping them evaluate their previous transaction is a very useful aspect of any p2p application.

The estimated time for development is 50 hours.

Authorization Security

Security is one of the most essential parts of any application that handles finance. You have to implement passwords, a biometric recognition system, or both to confirm the identity.

Fingerprint locking, password, pin, face recognition is some of the most common ways to implement security authorization.

The estimated time for development is 100 hours. 

Data Encryption

Data encryption is a vital part of securing the transaction made through the app. The development of secure data transfer is much more important than spending money on the best-looking user interface. So, opt for the best crypto technology that works well with the application and secures the data.

The estimated time for development is 150 hours.

Implementation of Social Feed

The thing that makes Venmo stand out in a crow of p2p applications is its unique social feed. The opens up the door to a new aspect of the money transfer to the users.

Users can elevate the transactions by the means of fun comments and icons. And small things like these make Venmo a super hit among the millennials.

In a world where everyone has dived inside social media and is hooked with all the social updates, social feed goes a long way.

The estimated time for development is 40 hours.

How does Venmo make money?

How does Venmo make money

Now the serious question arises.

As you are looking to invest money for the development of the application and pay the developer depending on the estimated time, how will you make money?

If it is not a high-profit application, the investment will go down in vain. So, let us take a look at how the Venmo app makes money.

1. Charge for credit card payment

For every payment that is made through a credit card, Venmo takes a 3% cut. So, in a world where people are opting more into credit cards instead of debit cards for the benefits, this is a great way to make money.

The monetizing model on your app must have this system incorporated. This will make a constant source of steady income through the application.

2. Charge for fast money transfer

The Venmo app takes around 2 to 3 working days to transfer money to your bank account. But for the users who are willing to pay a small fee to make the transfer go fast, there is good news.

With an additional percentage charge, Venmo will make the transfer fast and decrease the delay by a significant amount.

3. Charge for merchants

The reason why Venmo works so hard to expanding its client base is due to this charge. Every time someone purchases from the merchant, Venmo takes a cut of around 3%.

The benefit of the merchant is that they get the increased sale. And Venmo makes a huge amount of money from the increased amount of purchase through the app. So, it is a win-win situation for both teams.

Frequently asked questions

How Much Did it Cost to Make Venmo?

Even though there is no magic number for the cost of making an app like Venmo, you should have funding of around $25k – $50k to launch the product.

How Can You Make Money Using the p2p App?

You can make money from a p2p app by taking the following charges.

  1. Charges for credit card payment.
  2. Charges for fast money transfer.
  3. Charges for merchants.

Wrap Up

So, this ends today’s discussion on how to how much does it cost to develop a mobile e-wallet app like Venmo.

The estimated hours that will take the developers to build every functional feature are included. Now all there is to find is the amount of money you will have to pay developers hourly, depending on your region.

With the mobile payment market still growing exponentially, it is the perfect time to invest in the development process.

The p2p technology is being adopted by most businesses and modern-day customers. So, get down to business and create innovative solutions for the p2p industry.

About the author

Director @Anyalpha, a Top Software Development Company offering  Mobile App Development and Website Development Services to Businesses & Startups.

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