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How to Test Peer-to-Peer Payment Platforms for Fintech Apps

23 Feb
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5 Minutes
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Software Testing

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    Peer-to-peer or P2P platforms enable fund transfers between two bank accounts. This is usually enabled through some kind of application or service. These services enable fund transfers between two bank accounts.

    PayPal has been operating in the P2P payment space long before the others. Venmo and Zelle are some of the global names in this space.Some of the most popular P2P payment platforms in India include Paytm, PhonePe, and BHIM(Bharat Interface for Money). India has proved to be one of the most promising markets for such applications.

    The global P2P payment market size has seen massive growth over the past few years. There were some disruptions in the growth trend due to the Russia-Ukraine war, but that was for a short duration only. The P2P payment markets, especially in the fintech sector are showing no signs of stopping.

    As of March 2023, a report published by The Business Research Company on Report Linker says that the global market for P2P payments saw a surge from USD 2.62 Billion in the year 2022 to USD 3.04 Billion in the year 2023. It is expected to grow at a CAGR of 16.5% with an estimated value of USD 5.61 Billion in the year 2027.

    The forecast period is between 2023 to 2027.P2P payment platforms are without a doubt one of the fastest ways to do transactions. Since they have to use the financial and personal information of their users, software testing companies ensure the safety and reliability of such platforms.

    Taking half measures with such platforms can lead to huge financial and reputational losses. Rigorous testing strategies have to be implemented to make sure of everything.In this post, we will cover the most effective strategies to test P2P payment platforms.Let’s get started.

    Table of Content
    1. What are Peer-to-Peer Payment Platforms?
    2. Types of Peer-to-Peer Payment Platforms
    3. Testing Peer-to-Peer Platforms: Making Payments Safe and Secure
    4. Key Challenges in Testing Peer-to-Peer Payment Platforms
    5. QAble Empowers Your Online Payment Platform with Top-Tier Safety and Security Assurance
    6. FAQs

    What are Peer-to-Peer Payment Platforms?

    Consider P2P payment systems as middlemen as they help in transferring money from one bank account to another. These transactions are basically done on P2P applications. All you need is a strong internet connection!

    These platforms enable users to send and receive money seamlessly, often through mobile applications or online platforms. Hence, they have revolutionized the traditional landscape of money exchange across the world.

    • Let’s say you buy something from an e-commerce site. You select a product and create a purchase request. If the mode of payment is made through some P2P payment application like PhonePe, Paytm, or PayPal, the payment amount goes directly from your bank account to the payee's bank account.
    • Another example is that while you transfer funds from one bank account to another. This is also enabled through P2P platforms. They act as a mediator that helps secure and fast transactions between two accounts

    Here is the e-commerce purchase example for the same. PhonePe or a similar platform enables the transfer of funds. The below representations explain the flow of P2P platforms while a product is being purchased from an online shop.

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    Types Of Peer-to-Peer Payment Platforms:

    There are various types of P2P payment platforms available to use. The functions and the UI of P2P platforms may vary depending on the type. Some platforms may be free to use and some may require some additional fee. There may be other differences too.

    • For example, PhonePe provides the platform without additional charges in most transactions. PayPal takes some fees to enable such transfers.
    • Another example is the time taken to transfer funds from one bank account to another. PhonePe P2P platform transfers funds instantly powered by UPI. Whereas PayPal might take a longer time which could vary from days to even a month to transfer funds.

    Also Read: UPI Payment Testing: Challenges and Solutions

    So now that we have a basic understanding of some differences among P2P payment platforms, let’s go through the main types of P2P platforms.

    • Fintech Applications - These P2P platforms are the fintech apps. Banks are directly responsible for enabling P2P platforms for the same. The fund transfers are done through dedicated web or mobile applications of such financial institutions. Some of the examples include the SBI YONO app from the State Bank of India and iMobile Pay from ICICI Bank.
    • Dedicated Platforms - These platforms are not financial institutions. They just act as mediators to enable safe and secure P2P transfers between two bank accounts. Some examples of the same include PhonePe, Paytm, BHIM, and PayPal.
    • Custom Payment Platforms Based on Mobile OS (or companies) - Smartphone companies like Samsung and Apple have brought their own P2P platforms. Just like other P2P applications, they have similar functionalities like contactless payments, Digital Wallets, and so on. They are customized by these companies as per their business model. Some prominent examples are Samsung Pay and Apple Pay.
    • Social-Media Based Payment Platforms - Meta (formerly Facebook) introduced a payment feature in 2010, allowing seamless fund transfers. Additionally, Google went ahead to acquire Softcard to enable P2P transactions. WhatsApp messaging platform (Owned by Meta) has also introduced a P2P payment platform of its own.

    These distinct categories showcase the diverse landscape of Peer-to-Peer payment platforms, catering to various user preferences and offering seamless and secure money transfer solutions.

    Testing Peer-to-Peer Platforms: Making Payments Safe and Secure

    Testing P2P payment platforms can be complex. Several areas need to be covered. Since P2P apps deal with financial and user information they have to be tested carefully.Below are some of the main strategies utilized while testing P2P platforms:

    Functional Testing

    • Basic functionalities to be tested include user registration and login workflows.
    • Since P2P includes the transfer of funds, these functions need to be tested as well.
    • It is designed to cover scenarios of payment processing. This includes successful or failed payments.
    • Functional testing also makes sure that the errors or any user actions within the P2P platform are handled with human-readable and clear messages.
    • Functional testing also makes sure that the transactions are managed in the right way on such platforms.

    Security Testing

    Privacy and security are two of the most important pillars in enabling P2P payments. Below are some pain points to be tested for the same:

    • P2P payment apps must stick to strong protocols for username and password protection. Since they are stored on some kind of database, the encryption and decryption protocols need to be tested.
    • Two-factor and Biometric Authentication workflows also need to be tested since modern P2P platforms use these methods to validate transfers.
    • Data protection and privacy of the users also need to be taken care of while testing such platforms.
    • In case of data breaches, proper security measures have to be ensured.
    • The P2P platforms must also be tested for additional security flaws and vulnerabilities. This helps in mitigating risk.
    • Risk assessment for P2P platforms has to be done by the QA experts to manage unforeseen and real-world scenarios.

    Also Read: What is Penetration Testing and How Does It Work?

    Usability Testing

    Usability testing focuses on assessing navigation flow and user interface design. Let’s see how usability testing plays an essential role in enhancing peer-to-peer payment platforms.

    • Testers observe how easily users can complete tasks like sending and receiving funds, managing settings, and accessing support.
    • Effective error handling and feedback are confirmed by usability testing to quickly resolve issues encountered during the payment process.
    • Usability testing evaluates interface elements such as forms, menus, and buttons which should be understandable and clear.

    Integration Testing

    Integration testing for peer-to-peer platforms involved validating seamless integration to execute reliable payment transactions.

    • It verifies that payment requests are correctly transmitted to the payment gateway and accurately records data transactions.
    • P2P platforms mainly rely on third-party APIs for fraud detection and identity verification.
    • Integration testing also requires verification of API responses and error scenarios to ensure proper data synchronization between the platform and external systems.

    Compatibility Testing

    It ensures that the peer-to-peer payment platforms function seamlessly across different environments and maintain a consistent user experience. Let’s look at some of its other aspects.

    • It focuses on verifying the platform’s compatibility with different operating systems such as MacOS, Windows, Android, and iOS and browsers such as Firefox, Chrome, Edge, and Safari.
    • P2P platforms or apps need to be responsive across a variety of devices.
    • User interfaces for the same must be compatible with different screen resolutions.
    • There may be compatibility issues due to different browser engines for different web browsers.
    • These have to be tested and verified as well for maximum device and browser coverage.

    Regression Testing

    Updates and new version releases are important for software. P2P platforms are no different. Once the updates are applied to the existing software, it must be validated.

    • QA testers made sure that the updates didn’t break other functionalities of the system. Regression testing is performed for the same.
    • Fund transfers have to be validated after code updates for the P2P platform.
    • It is also of great importance to test for system failures in the event of system updates.

    Localization Testing

    Localization testing focuses on checking functions in different regions, cultural settings, and regions.

    • Localization testing is used to verify whether error messages, transactions, and other textual content are translated properly or not.
    • It verifies that the platform supports regional currency symbols, formats, and decimal separators
    • It is also essential to check dates, and time zones which should be displayed correctly as per the selected geographical regions.

    Also Read: What is Localization Testing?

    Compliance Testing

    Compliance testing verifies security measures like access control handling sensitive cardholder data.

    • Compliance testing ensures that the platform adheres to the provisions outlined by the General Data Protection Regulation.
    • Testers assess the data protection practices, retention policies, and mechanisms for handling user rights.
    • It helps in promoting transparency, trust, and accountability in operating a peer-to-peer platform.

    Load and Performance Testing

    P2P platforms usually have to work under heavy loads. Due to it’s increased popularity especially in the fintech sector, the stability for the same matters the most during peak traffic. Below are some of the main aspects to keep an eye on while doing load and performance testing of P2P platforms.

    • Real-world scenarios like the P2P platforms being used while performing large volumes of transactions at the same time have to be tested.
    • Load testing also helps to test the system with a large number of concurrent users accessing such platforms at the same time
    • It helps to determine the system’s performance to make sure that the system is not taking too much time to respond while handling heavy user requests to the server.
    • The transaction processing time is important. These need to be as fast as they can.
    • The resource utilization of the P2P platforms is also to be tested.
    • The throughput rate checks for the units of information a system processes per unit of time. Load and performance testing make sure that the system delivers high throughput.
    • Performance testing when done with pre-defined KPIs, can very well provide insights into the scalability of the P2P platforms. It only makes sense for such platforms to be scalable. Load and performance testing can test for the same.

    Also Read: How to Test Scalability for Cloud-based SaaS Products

    Key Challenges in Testing Peer-to-Peer Payment Platforms

    We went through the key testing strategies for testing P2P platforms. In this section, we will look at some of the key challenges while testing such platforms.

    System Security and Data Privacy

    • Security is one of the key areas where the P2P has to make sure that everything is alright. Since P2P platforms have to deal with finances, extra precautions need to be taken while conducting security testing.
    • P2P platforms have to deal with sensitive user data and their financial information. Keeping such data private should be the number one priority.
    • The systems must be monitored for regular logs. This helps in keeping track of things while performing security audits.
    • System behavior must also be frequently analyzed to detect any issues for quick resolutions.

    User Experience and Adoption

    Empowering users with knowledge and resources to make informed decisions cultivates a confident and engaged user base. To overcome this challenge, peer-to-peer platforms should also focus on rapidly evolving expectations by taking their feedback, and reviews.Therefore, regular updates, feature enhancements, and incorporation of user feedback promote better user engagement and adoption.

    Dispute Resolution and Customer Support

    Providing exceptional customer support and dispute resolution is essential to maintaining healthy growth and trust among customers. Disputes can arise from transaction errors, unauthorized activities, or issues with goods or services which must be solved promptly.Hence, depicting clear guidelines on required evidence and transaction records for testing is highly beneficial.

    Regulatory Compliance

    Testing Peer-to-Peer Payment Platforms necessitates a deep understanding of regional regulatory frameworks. Let's dig into some of the regulatory compliances that you must be aware of.

    • Know-Your-Customer- Verifying the identity of users is a vital component of KYC regulations. Peer-to-peer software testing should focus on evaluating the efficiency and accuracy of identity verification processes to ensure KYC compliance.
    • Anti-Money Laundering and Fraud- Robust testing procedures must be conducted to identify vulnerabilities, detect suspicious patterns, and ensure compliance with stringent AML guidelines.

    QAble Empowers Your Online Payment Platform with Top-Tier Safety and Security Assurance

    With its expertise and deep understanding of the unique challenges in this domain, QAble empowers peer-to-peer payment platforms to deliver seamless and secure financial transactions.

    As a reliable QA partner, peer-to-peer payment platforms provide access to a dedicated team of testing professionals. We ensure that your P2P platforms follow all the necessary and regulatory guidelines.We went through the most important testing strategies that QAble uses to test P2P platforms.

    Below are some of the additional testing strategies that we use. These further help for maximum test coverage:

    • Automation Testing: Manual testing most certainly is the primary form of testing for any P2P platform, but there are so many areas where automation testing is much needed. Using automation frameworks and tools helps to test P2P platforms very efficiently.
    • Real Users’ Feedback Loop For Testing: Using feedback from real users is one of the most valuable ways to test a product. In the end, they are the ones who will use the product. Getting regular feedback helps to improve the product in a continuous manner. QAble understands the value of such feedback loops and implements them in a very practical manner while testing products.
    • Network Latency Testing: With the growing user base of P2P platforms, especially in the fintech apps, the network usage of such apps is an important area to consider. Different geographical locations have variable internet connections and speeds. P2P platforms need to make sure that they work well without any issues across all areas, regardless of the available bandwidths.

    QAble makes sure that your P2P platforms are safe, reliable, and very performant. With years of expertise in testing across most domains, we make sure that your product reflects quality at its best.

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    FAQs

    What are P2P payment platforms?

    Peer-to-peer or P2P platforms enable fund transfers between two bank accounts. This is usually enabled through some kind of application or service. These services enable fund transfers between two bank accounts.

    What are the main types of P2P platforms currently available in the market?

    There are four main types of P2P payment platforms currently active in the market namely fintech, mobile operating system-based, dedicated services, and social-media application enabled.

    How can tech startups overcome QA testing resource constraints?

    Tech startups can leverage automation tools and outsourcing platforms to efficiently manage QA testing with limited resources.

    What are some examples of P2P payment platforms?

    Some very popular P2P payment platforms include PhonePe, Paytm, BHIM, PayPal, Google Pay, and Venmo.

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    Test Your Fintech App's Payment Platform for Seamless Transactions.

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