Common Mistakes to Avoid During Remittance App Development

Did you know that the global remittance market is expected to reach USD 107.80 billion by 2030? Interesting, right?

Well, such massive growth presents a profitable business opportunity to invest in this sector and earn from a massive user base. Many businesses and entrepreneurs are now developing remittance platforms to provide these services.

However, despite the promising nature of this venture, success largely depends on creating a robust remittance application. After spending over a decade in the industry, we’ve observed that many businesses fall short due to common mistakes made during app development. This guide outlines the most common mistakes developers and product teams make during remittance app development and how to avoid them.

Neglecting Regulatory and Compliance Complexity

Remittance is a highly regulated sector that is subject to the regulations of the multiple countries in which it operates. Although there are many regulations, the most common ones surround money laundering, terrorist financing, fraud, and related areas. Even a minor non-compliance can subject your business to heavy fines, and you might have to lose your license.

You can avoid noncompliance by

• Consult legal experts who can advise you on remittance regulations.
• Automate KYC in your remittance software.
• Set transaction limits based on risk score to restrict illegal transactions.

Weak Security Architecture Of Remittance Software

Remittance software manages personal and financial information for both individuals and businesses. Even a single security breach can lead to significant losses, which is why remittance platforms are common targets for hackers. They can be easily exploited due to weak passwords, lack of data encryption, or outdated libraries. It can harm your reputation in the market and drive away potential customers.

Now, you can make your platform secure for your customers and build strong remittance software by:

• Utilize advanced security protocols like AES-256 encryption.
• Implement two-factor authentication (2FA) or biometric login.
• Before deployment, test the platform to ensure it is bug-free.
• After launch, conduct regular code reviews and penetration testing.

Poor User Experience (UX) and Over-Engineering

Having a good user experience for a remittance application is crucial, just like for any other type of application. Because the users of this app are not typically tech-savvy but rather ordinary people using it for money transfers, a complex user interface with too many features may confuse and frustrate them. The main goal of the application is to provide users with a smooth and straightforward remittance service, not to overwhelm them with unnecessary complications.

Here are the things you should consider to avoid this issue:

• Begin the application design process by referring to an app flowchart.
• The application’s design should be optimized for speed, clarity, and a seamless remittance experience.
• Make sure to use simple visuals and consider the user’s language.
• Don’t use too many animations, as this may make users impatient.
• Implement offline support to ensure compatibility with low-connectivity areas.

Ignoring the Scalability Of Remittance Software

Most companies build their platforms for a limited number of users and rely on monolithic backends or static hosting. They often overlook remittance peaks during emergencies, festivals, or holidays. Furthermore, as businesses grow, their systems need to constantly accommodate a larger user base.

This increased user activity means handling numerous transactions simultaneously, which can lead to downtime, system shutdowns, data loss, and damage to their reputation.

Therefore, it’s recommended to trust cloud-native hosting services like AWS Lambda, Azure Functions, and others. Furthermore, using global CDNs can improve app performance and accessibility.

Weak Customer Support Integration

Running a business requires you to be present for your customers and respond to their inquiries, particularly in the case of remittance businesses.

Your customers may experience a system error, have their remittance request rejected, or have funds delayed for some reason. In such cases, they require immediate and complete support. However, some remittance companies overlook this during application development and do not offer real-time chat support.

As a result, you should include 24/7 in-app live chat support, with your CCE team available at all times to assist customers with their inquiries. Furthermore, you can use AI-powered chatbots for automatic 24/7 assistance and solve common problems like delays or document rejection.

Picking the Wrong Development Partner

Now, this could be the single mistake that can leave space for all the other mistakes in your remittance application development, and that is choosing the wrong development partner. Whether you’re working with a freelancer or a remittance application development company, you should hire a professional who understands the complexities of mobile transfer application development.

Always select a partner who:

• Has expertise, particularly in remittance application development.
• Have a portfolio that shows they’ve worked with similar clients in the past.
• Maintain transparent communication and an agile methodology.

And most importantly, avoid the cheapest service provider. Building a strong platform requires significant technical resources, which also demand substantial financial investment. Therefore, choose a reasonable service provider that may cost more initially but offers long-term peace of mind.

Final Note

Opening a remittance business necessitates numerous considerations, but developing a strong remittance platform can handle the majority of the aspects that will propel your remittance business toward success. Make sure to avoid the above-mentioned mistakes and, most importantly, hire a professional to build your money transfer software. Tech Remit creates secure and scalable money transfer software with a user-friendly interface that adheres to international regulatory standards. Our white-label money remittance solutions not only perform but also ensure business growth. Request a demo today!

Also Read :  Why Tech Remit Is The Best White-Label Remittance Solution For Your Business?