How Much Does It Cost to Build a Cashless Payment System Like Parent Pay App

Haven't online payments made everything convenient? If you want to transfer money, you can do it using online apps like Paytm or the banking website.

The cashless payment system also means you don't need cash to shop. These tools have become useful in education, workplaces, and social settings.

With the cashless payment system, you don't have to worry about taking large sums of cash with you and fearing getting robbed. This system offers convenience and security to users.

Parent Pay app is also a cashless payment app developed for schools to facilitate transactions between parents, students, and educational institutions.

But what does it take to build an app like Parent Pay, and how much does it cost?

This article will include a complete guide on how to develop a cashless payment app, including its development costs, features, cost factors, and more.

So, without any further delay, let's get started.

What is the Parent Pay App?

The Parent Pay app is a cashless payment app introduced to help parents manage and make payments for various school-related activities, like school meals, trips, uniforms, stationery, and others.

It is used in many schools across the UK and allows parents to securely make online payments for their children’s school fees or any education-related costs.

It was developed to simplify school life, which aligned with its mission of starting the cashless revolution in schools.

This app helps parents track payments and book and pay for school events and extracurricular activities.

It is convenient, especially for parents who want to manage their child’s school-related finances easily without needing to send cash or cheques.

Important Stats on Cashless Payment Apps like ParentPay

According to the comprehensive reports, digital or cashless payments continue to grow. Its market is also expected to grow from US$17.72tn in 2024 to US$36.75tn by 2029, with an annual growth rate (CAGR 2024-2029) of 15.71%.

As we speak of numbers, we should also look at some important statistics on cashless payment systems like ParentPay App.

Mobile POS payments are considered the largest market, with a projected total transaction value of US$ 10.85 trillion in 2024.

One of the interesting facts is that debit cards are also included as the most preferred cashless payment system by UK consumers.

The global mobile payment market is also expected to grow at a CAGR of 30% from 2023 to 2030 because of the increase in smartphone usage and internet access.

Many studies and even the Parent Pay survey show that 65% of school meal payments are totally cashless in schools that have the facility for cashless payment (up 5% in 2019), 33% are partly cashless, and 2% continue to take cash-only (or BACS) for school meals.

Studies show that 90%of parents said they prefer to pay for schools online because it is more convenient and has security features.

Why Build a Cashless Payment System Like the Parent Pay App?

Before we discuss how much it costs to build an app like ParentPay, it's essential to know why you should make or invest in a cashless payment system. Here are some reasons why investing in such a system could be beneficial.

Convenience for Users

Cashless payment systems make it convenient for users to pay from anywhere, at any time. They simplify the transaction process, reducing the need for cash when you can pay for school meals, event tickets, uniforms, and other things using apps like Parent Pay.

Efficiency for Businesses and Institutions

It is best for schools and educational institutions because it makes administrative tasks easy.

This is because they don’t have to handle cash and paperwork manually, reducing the time required to manage and track payments.

It also benefits businesses such as online retail stores, travel services, restaurants, e-commerce businesses, and many more.

Enhanced Security

When you carry cash with you, you tend to worry whether it is safe, and you always stay on the lookout for it. However, cashless payment systems or apps prevent the risk of cash theft or mismanagement.

It has various security features, allowing for secure and trackable transactions and protecting institutions and users, which is especially essential for cyber security.

Cashless payment apps often include advanced encryption and two-factor authentication to ensure that users' transactions remain confidential and secure.

Data Insights and Management

It can happen that you think about whether you have paid your children’s school fees after actually paying for them.

So, a digital payment system also includes a transaction history, where the parents can easily track what they have paid for, enhancing transparency.

It also allows institutions to track payments and manage finances more effectively.

Eco-Friendly Solution

A cashless payment system is also an eco-friendly solution because it reduces the need for cash transactions, which decreases paper waste.

Also, receipts, invoices, and other documentation are managed digitally, reducing the need for paper and supporting environmentally friendly initiatives.

Key Features of a Cashless Payment System like Parent Pay App

After understanding the steps to build an app like Parent Pay, you may want to know its key features to know which of them you should add to make it more user-friendly and secure. The key features of a cashless payment system are as follows:

User Authentication

User authentication and registration are vital for any payment system. This cashless payment system includes an effective login process so users can safely access and manage their accounts.

Payment Options

A cashless payment system will include various payment options, such as credit/debit cards, payment gateways like Stripe or PayPal, or integration with banks like the Parent Pay app.

Digital Wallet Functionality

Digital wallet functionality is an essential feature of any cashless payment system. It allows users to store funds for future payments and ensures quick transactions, making it more convenient.

Notifications and Reminders

We need reminders for upcoming payments or low wallets because people often forget such things because of their busy lifestyles and routines. Its automatic notifications feature helps enhance user experience and ensure timely transactions.

Security and Data Encryption

It is a feature that you can’t negotiate, especially for cashless payment apps like Parent Pay. That is why it is essential to ensure security with encryption and follow compliance regulations for user trust and safety.

Multi-Platform Accessibility

Lastly, your cashless payment app should be accessible across multiple platforms, like iOS and Android, which will also help increase its reach.

How Much Does it Cost to Build a Cashless Payment System Like Parent Pay App?

The cost of building a cashless payment system like the Parent Pay App ranges from $40,000 to $200,000 or more.

However, it is important to note that the cost of developing a cashless payment system like Parent Pay is affected by various factors, such as app features, technology used to develop it, team size, development approach, database design, and payment gateway integration.

If you are looking to build a cashless payment system, you must learn the development costs and the factors affecting it.

Let’s take a look at the table mentioned below, which includes an approximate cost of developing a cashless payment system like the Parent Pay app.

Cost Breakdown for Building a Cashless Payment System

Many factors affect the mobile app development cost when building a cashless payment system.

It is a long-term investment, but the result, including flexibility, convenience, and enhanced customer experience, will be worth the cost.

You should still know their costs when choosing mobile app development trends, technologies, features, designs, and platforms based on your requirements and budget.

Here are the detailed cost estimations of factors for a cashless payment system.

Factors Affecting the Cost of Building a Cashless Payment App

A cashless payment app makes it easier to pay digitally without carrying cash everywhere you go or worrying about not paying the school fees when it is the last date, building a digital trust.

However, the cashless payment system development costs are influenced by various factors like the app’s features, complexity, design, platform you are choosing, and many more.

Let’s get into the details regarding the primary factors that affect the cost of developing a cashless payment system like the Parent Pay app.

Complexity of the App

The more complex your app will be, the more development costs will be. This factor affects the price of mobile app development. Complexity means the features and functionality you will include in your app.

The costs can range between $25,000 to $100,000 or more, depending on whether you choose the basic, advanced, or custom features for your app.

A cashless payment system with simple capabilities, including user login, digital wallet, payment gateway integration, QR Code scanning, and push notifications, will cost less than those with more advanced features.

The cost will be higher because more development time and resources are required to build the app with more functionalities and features.

App Development Platform

Your chosen platform will also affect the development costs, whether you choose Android and iOS app development or both. If you are considering developing separate apps, it can cost you more.

Native app development costs range from $50,000 to $200,000+, depending on the features and development time.

While cross-platform development can cost you less because it uses a single codebase for both platforms, it may also include customisation restrictions.

Developing the app for multiple platforms can increase development time and cost but will expand the potential user base.

Development Team Location

The location of your selected development team can impact the cost of building a cashless payment app. The price varies from region to region, depending on local market rates and the app developer's expertise.

The development costs in countries like the UK, the US, and Canada are usually higher than in countries like Poland, China, and India.

When hiring a development team, take into account their skills, the desire for communication, and the development costs of making a cashless payment system like the Parent Pay App.

UI/UX Design Strategy

A user-friendly and appealing design is the secret to any app’s success. That is why it is essential to use an effective UI/UX strategy to create a visually attractive design.

However, your app's design will also influence the cost of development. A simple design with fewer customisation options is less costly than a custom-designed app because it requires more design iterations, testing, and user research.

The cost can vary depending on the complexity of the layout, including customised animations and different branding.

Technology Stack

The technology stack, such as programming languages, frameworks, and databases, can affect development costs. Emerging technologies like cloud services, AI, and many more impact costs.

If you create a hybrid app, the cost can be less due to its simultaneous development for multiple platforms.

Security Features

Integrating security features is essential for a cashless payment app to succeed. Implementing features such as encryption, biometric authentication, two-factor authentication, and PCI-DSS and GDPR compliance will increase the cost of app development. This is a non-negotiable aspect, especially for payment apps like Parent Pay.

Backend Infrastructure

Ensuring impressive backend infrastructure is crucial for any payment app. This is because it allows handling user data, transactions, and integrations, which can lead to increased costs.

Backend development costs usually range from $20,000 to $50,000, depending on the skills of a backend developer and required features, such as real-time payments, account management, data security features, and data analytics.

Ongoing Maintenance and Updates

Maintenance of a mobile app is essential to ensure it stays bug-free and updated. It usually costs 15-20% of the development cost annually.

For example, if your app costs $100,000 to build, you can expect to spend $15,000–$20,000 per year on maintenance.

Payment Gateways and Bank Integrations

Integrating or creating secure payment gateways, especially if you want to offer users multiple options, can add to the cost. Each integration has associated costs, setup fees, and transaction fees.

How to Build a Cashless Payment System Like Parent Pay App?

If you are also considering building a cashless payment system like the Parent Pay app, you should understand that it involves various steps and should be considered carefully.

Developers often include these steps while creating a cashless payment app. Here is the process of building such an app that meets users' needs and ensures security.

Define Your App’s Core Features

A cashless payment app like Parent Pay often includes features like user authentication, digital mobile wallets, payment gateways, QR code payments, etc.

That is why it is necessary to define the key features your app will offer, like Parent Pay, which includes various features that meet the needs of parents, schools, and educational institutions.

Determine what features are required for your app. Adding unnecessary features may affect the app’s performance and lead to slower load times. Also, more features can increase your expenses.

So, identify the main features you need, and then you can consider adding more once your business starts scaling.

Choosing the Right Payment Gateway

Another step is selecting the payment gateway that allows secure payment processes between users and merchants, just like the Parent Pay app provides for parents and schools.

When choosing it, consider the payment methods, including credit/debit cards, digital wallets like PayPal, and possible bank transfers.

Most importantly, it would help if you understood the transaction fees associated with the payment gateway, as this will impact the profitability of your app and user experience.

Design a User-Friendly UI/UX

One factor that will be essential for a cashless payment system and its users is the app's UI/UX design. Consider using a clean, intuitive, easy-to-navigate design to ensure an excellent user experience.

You can use various design elements and responsive design, but to reduce users' confusion, ensure the design stays consistent across multiple devices, such as smartphones and tablets.

Choose the Right Development Approach

The next step is deciding which development approach to use to ensure the effective development of the app that meets your budget and requirements.

Whether you want to build separate apps for iOS and Android or use a cross-platform framework, consider all factors and decide how to develop the app, depending on your budget, timeline, and target audience.

Implement Security Features

A cashless payment system deals with sensitive and confidential financial information, so it is extremely important to include security features when developing the app.

To build a cashless payment system like the Parent Pay app, you must implement various security features, such as Encryption, PCI-DSS compliance, two-factor authentication, and fraud detection algorithms.

Integrate with Third-Party Services

Integrating third-party services is another step you can include while building an app like Parent Pay. It will ensure its smooth functioning and performance.

The Parent Pay app also integrates school databases to keep everything updated and make administrative tasks easier.

You can also use third-party services like SendGrid for email notifications and Twilio for SMS alerts, work with banking APIs for secure money transfers, and use tax and accounting tools for budgeting and auditing purposes.

Test Your App Thoroughly

This step includes testing the app before launching it. This will help ensure the app is secure, reliable, user-friendly, and functions as per your expectations. However, the cost of testing can vary based on the number of devices and platforms, automation tools for testing, and security testing.

App launch

After conducting thorough testing, you can launch the cashless payment app and make it live.

If you are building native apps, ensure you meet all the necessary guidelines for Google Play Store and Apple App Store submission.

Monitor, Update, and Scale

Don’t think that the work is completed once you have launched your app. The mobile app development company, agency, or freelancer you choose will ensure continuous maintenance and keep the app updated, as this will also be included in developing a cashless payment system.

Benefits & Cost of Building a Custom Cashless Payment System

The cost of building a custom cashless payment system may range from $30,000 to $500,000. However, you should consult a reliable custom mobile app development service to learn the exact prices. These prices may look costly, but developing a custom cashless payment system offers various benefits.

Flexibility and Customisation

A custom-built cashless payment app allows you to add features and functionality based on your requirements and design a UI that matches your brand identity.

Independence from Third-Party Services

When building a custom app, you will no longer have to rely on third-party services. It will also not include recurring fees for every transaction.

Enhanced User Experience

Custom app development allows you to include designs and features that appeal to your audience, resulting in enhanced user satisfaction and experience.

Data Ownership and Insights

A custom solution gives you full access to user data and analytics. It helps you learn more about user behaviour and transaction trends and provides information about marketing trends and tools you can use.

Security Control

When building a custom app, you will not worry whether you are meeting the organisation’s standards or complying with industry regulations. This is because you can control the app’s security.

How Can You Reduce Cost When Building a Cashless Payment App?

Are you looking for ways to reduce costs when developing a cashless payment system like the Parent Pay App? Here are various ways to keep your expenses under control while ensuring the best quality of the app.

Focus on MVP

You can save upfront costs by starting with an MVP (Minimum Viable Product), which includes the necessary features. Based on your budget and user feedback, you can add more features later.

Choose Open-Source Solutions

Utilise open-source technologies for back-end services, encryption, and payment gateways. It will reduce licensing fees, and you can use tools for mobile app development like React Native and Flutter.

Outsource Development

If you are tight on budget, consider outsourcing the development of a cashless payment system. Hire skilled teams in regions with lower developing costs.

Use Cross-Platform Development

Cross-platform frameworks like React Native or Flutter can be used to develop an app. They help save time and cost by creating an app using a single codebase for both iOS and Android.

Implement Cost-Effective Testing Practices

For quality assurance, consider hiring freelance testers or using automated testing tools instead of a large in-house team.

The Bottom Line

The cost of building a cashless payment system like Parent Pay app is around $40,000 to $200,000 or more. Building an app like Parent Pay can be challenging because it requires time and more financial investment.

However, investing in such a system is beneficial because it increases the efficiency of businesses and institutions that allow easy online or cashless transactions.

Consider the factors that can influence app development costs, such as complexity, development team location, and UI/UX strategy.

Carefully plan your budget and focus on essential features to create an excellent app that helps enhance user experience and drives business efficiency.

If you are also looking for the best mobile app development company, contact us to build a cashless payment system like the Parent Pay app.

Frequently Asked Questions

Q1 How long does it take to build a cashless payment app?

Ans The timeline for developing the app can vary between 6-12 months, depending on its complexity, features, and functionalities.

Q2 What are the main features a cashless payment system should include?

Ans The key features that a cashless payment system should include are payment gateway integration, digital wallets, user profiles, notifications, and reporting tools.

Q3 What are the maintenance costs for a cashless payment system?

Ans The maintenance costs for a cashless payment system can range between $10,000 to $ 30, 000 per year.

Q4 Can small schools benefit from a cashless payment system?

Ans Yes, small schools can also benefit from the cashless payment system, which is beneficial for schools of all sizes. This system helps make the payment process simple and reduces administrative tasks.