There are several risks associated with P2P payment apps:
Security - such software solutions may be susceptible to security breaches. These are hacking, data leaks, or unauthorized access to user accounts. This could result in financial loss or personal information being compromised;
Fraud - scammers may use these services to trick users into sending money under false claims. Phishing attacks, fake payment requests, or impersonation scams are common risks;
Privacy - P2P payment apps often collect and store user data. The data includes transaction history and personal information. There is a risk that this data may be mishandled, shared with third parties without consent, or used for targeted advertising;
Disputes and Chargebacks - these mobile applications are typically instant and irreversible. If a transaction is made in error or fraudulent activity occurs, it can be challenging to resolve disputes. Initiating chargebacks might be a problem, too. This can lead to a potential financial loss;
User Error - users may accidentally send money to the wrong person or input incorrect payment details. Once a transaction is initiated, it can be difficult to recover the funds;
Technical Glitches. Applications rely on stable internet connections and functioning servers. Technical glitches, network outages, or app malfunctions can disrupt transactions or cause delays.