With payment methods becoming more flexible for individuals to quickly make transactions, a trendy term that has really taken over the payments industry is ‘digital wallet’. This trend has become so popular that many businesses are now looking into digital wallet app development to offer easy payment methods for their customers.
What is a Digital Wallet?
A digital wallet is a software, automated tool, or online assistance that empowers individuals or legal recipients to perform transactions electronically. It stores user payment information for various payment methods on various websites, as well as other items such as gift vouchers and driver’s licenses. Adopting a digital wallet, users can easily and quickly make purchases using close-field information technology. They can also create more secure passwords without worrying about whether they can remember them later.
Digital purses can be practiced in combination with mobile payment systems that enable clients to pay for shopping with their smartphones. You can also use your digital wallet to store information about loyalty cards and digital coupons.
Traditionally, it is available as a smartphone application, but a digital wallet can survive in other modes, such as a desktop computer.
Users of digital wallets are required to download specific applications designed by banks or granted third parties to adopt the service.
- Digital purses are financial accounts that permit users to save funds, secure transactions, and print payment history utilizing a computer.
- These parts of the software can be involved in the bank’s mobile app or payment principles, such as PayPal or Alipay.
The current payments scenario indicates that people like to use mobile electronic wallet applications or payment gateway models to make transactions. Several business partners adapt to mobile application developers with a single question: how to design wallets like Paytm, Venmo, Google Pay, Paypal, Apple Pay, etc.? The demand for these applications is that they give a safer ecosystem for making payments, and are quick and secure. People are not ready to endure the pain of waiting in queues for cash or transfer. To keep financial care in check, users not only accept the eWallet mobile application concept, but also the enterprises plan to come to the surface with their own specialized reliable financial solutions.
Therefore, the concept of the electronic purse and more secure mobile applications is implemented using powerful technologies such as NFC, Bluetooth, Blockchain, etc. So, continue reading the post to determine the best solutions for the development cost of eWallet, along with the main attributes, frames, and required team structure.
The world is growing more digital each day. Many enterprises are leveraging the potential of digital wallet app development for reliable, safe, secure, and quick payments.
Organizations That Depend on the Growth of Mobile Wallet Apps
1. The e-commerce organization
In today’s era, smartphones are part of our daily lives. When it comes to ordering food, home decor items, clothing, medicine, anything, and everything is delivered in one click. In recent years, the e-commerce industry has grown in popularity and bridged the gap between sellers and buyers. With the rise of e-wallet app development, small companies and startups have increased productivity. Mobile wallet app development trends have made e-commerce easier and payments safer.
2. Taxi booking apps
Do you want to order a taxi, but there is not enough cash? Don’t worry. Order a taxi and enjoy the trip, as almost all taxi ordering applications have a built-in electronic wallet function. Thus, even if you don’t have enough cash, the payment can be easily made and reach the destination at the right time.
3. On-demand food and grocery delivery
No one is left out of the growing trends in on-demand food and meal delivery. Thanks to the ease of delivering household goods to cozy living rooms, online payments are becoming popular. Integrating an e-wallet into your food and meal on-demand delivery app will make it easier for customers to make payments and increase profits.
4. Ticket booking applications
When you’re working on a wallet like Paytm, Google Play, you must integrate a ticket booking application into your mobile wallet that would make your travel easier. So if you desire to reach the top of success, you have only some steps left.
5. Pay online accounts
This is one of the best mobile wallet features that customers like. Most organizations accept payment online and often send reminders. This makes it more comfortable for clients to manage their plans in mind and not to miss inventory payment days.
Now that you have a clear idea of the prospects for developing electronic wallet software, you can contact the right software and app development service provider and prepare to enter the market with a very attractive and versatile application. Before working on the functions and cost of developing a digital wallet, let’s understand how payments are made.
How Does a Mobile Wallet Run? Different Payment Methods to Consider
When you decide to create your electronic purse application, everything becomes rather complicated. You want to find the best cash transfer system that will make your app more stylish.
Mobile Payment Types
One of the most popular ways to carry out transactions using a mobile purse are:
These cash methods in mobile e-wallet applications are mainly used to pay for people you often meet or those who are part of your office or social community. This kind of payment method in the mobile application wallet demands scanning the QR code of different user’s smartphones, with whom you require to make purchases in a really easy and simplified way. QR-system is one of the most common features of a mobile purse that cannot be dropped.
Transfer Method by Bluetooth and iBeacon
eWallets also recognize your buddies nearby to perform payments. Bluetooth and iBeacon technologies support making cash transfers very reliable and secure. These emerging advancements are the favorites of today’s users. Mobile Wallet Developer Units can quickly operate on applications that practice primarily Bluetooth and iBeacon technologies.
Near Field Communication is one of the best technologies used to exchange information and transfer funds with a convenient approach. Currently, most electronic purses use NFC channels for making payments in a contactless manner.
The mobile application of an electronic purse based on blockchain is one of the developing trends in the sphere of payments. These movable applications are chiefly practiced by government agencies and commercial organizations, as they require large transfers.
Such mobile solutions for electronic wallets are best suited to business requirements. The business can collaborate with other companies and local dealing shares and very efficiently transfer cash. With personalized mobile applications, large amounts of money are made very secure and ensure that no third party is involved in payments.
These are the chief means you can make bills online. If you require to build an app like Google Pay, you have to make sure your app efficiently maintains all of these payment methods.
Digital Wallet Types and Examples
Three types of digital wallets are listed below:
1. Private wallet
A company that trades goods and/or services may generate a private wallet for clients. Users of a private purse can utilize the funds deposited in it to make operations only with the issuer of the wallet. Cash from cancellation returns or refunds, is stored in wallets.
2. Semi-closed wallet
A semi-closed e-wallet enables users to perform transactions at specified terminals and places. Although the scope of such wallets is limited, they can be used to make both online and offline purchases. However, traders must register into contracts with issuers to receive cash from e-wallets.
3. Public Wallet
Banks or companies that collaborate with banks issue public wallets. Users with open wallets can use them for all transactions permitted for semi-closed purses, in addition to withdrawing funds from banks and ATMs and transferring funds.
Market Size and Statistics: What Makes the Development of eWallet Applications an Excellent Business Idea?
There is an exponential growth in the number of investors, developers, and users who accept and adapt to new trends. We’re giving you some global data here that shows why the cost of developing mobile wallet applications also tends to increase.
According to a report by Allied Market Research, the market of digital wallets will grow with the expected CAGR of 28.2%. In figures, the growth will be from a billion to 7,579.1 billion in 2027.
This is a definite hint of how simply this trend is being admitted and observed worldwide.
By the end of 2023, the global market for electronic purses is expected to grow by 16%, to about $2.2 trillion.
If only the numbers could tell the right story, it would be easier for you to decide to invest in the development of applications for electronic wallets. Well, now that you’re sure you want to enter this business, let’s take a look at the features of the electronic wallet application.
The Main Architecture of the Electronic Purse Application
This is the main section of the application; the user can log in using the credentials of the social network or e-mail account.
Bank Account Authorization
Users can select the bank details from which they want to make transactions. They can register a particular bank account and pay it at any time.
Add balance: Users can recharge their account balance by a certain amount based on the number of transactions to be made.
Users can also accept payments. By simply providing details of their account, users can accept payments in safe mode.
View suggestions: In this section, users can see quotations when making transactions and redeem points.
Users can transfer money to other users by entering account details, which makes transactions efficient and convenient.
Pay accounts: Users can pay their bills through their registered bank accounts to easily track all cash flows.
Check Balance Status
After all, transactions are completed, users can view their account balance and check all incoming and outgoing cash flows.
All transactions made by users are recorded and tracked. The user can search for all transactions using extended filters in the transaction history.
Invite friends: Users can invite their friends to send and receive funds. Thus, it is easier for them to transfer money as needed without asking for account details every next day.
How to make an electronic wallet smooth in its work is a big problem. Hire experts who can help you to handle this task easily.
All users registered with the application, their profile, and other basic information, are monitored and controlled by the administrator.
All new offers are managed by an administrator. Proposals related to referrals, rewards, frequent transactions are regulated and controlled accordingly.
User Management: The administrator monitors and controls all users who are associated with the application and are making transactions.
All users associated with the application, those who make frequent payments, and all methods of retaining and attracting users are under the control of the administrator.
Analytics and Reporting
All reports are generated that are related to the number of associated users, the types of most commonly used quotes, the number of transactions performed, the ease of use of the application, and the failure rate, as well as all other important details. The administrator can check all reports accordingly and suggest certain solutions to improve the visibility of eWallet’s mobile application.
Based on user behavior and the number of rejected or unauthorized payments, the administrator can block users. In the same way, it can add new user requests based on the number of users already connected to the application.
Sunvera Software develops next-level software applications from start-to-finish. Schedule a free 30-minute call with us to discuss your business, or you can give us a call at (949) 284-6300.