Mobile Wallet Development: What Does the Future Hold?

Mobile transactions always give you the next level of competition for perfection. These days, consumers around the world trust smart devices more and more. And leading the race for smart devices, smartphones have made a flawless space in people’s lives.

Not just the entertainment segment, but people are vigorously using technology to buy and sell everything from groceries to booking tickets for their weekend getaway.

This lays a clean and clear road for the success of mobile wallets or e-wallets. Multiple payment apps are blooming day by day, increasing the competition. But are they all successful?

Well, no! That’s because gaining customers’ trust is a big deal. And you can do it by following this blog of mine and by hiring an android app development company to assist.

You can thank me later for your success!

What is a Mobile Wallet?

A mobile wallet or an eWallet is a financial instrument that allows companies and individuals to receive and send money through mobile devices.

It can be seen as a type of eCommerce model that has been carefully developed for mobile devices, keeping the user’s convenience and easy access. A mobile wallet is also called mobile money or mobile money transfer.

Types of Mobile Wallet

There are many types of mobile wallet applications that differ in their payment processes. We will see these mobile payment applications one by one.

• The first type of wallet uses a mobile service provider to transfer funds. In this, the users of the mobile wallet application can send and receive money with the help of the service provider.
• The second type of wallets is those that provide various types of discounts via SMS with an OTP.
• The third type of eWallet application is the one that offers mobile web payments.

Like any other technical market, eWallet trends have also changed in recent years since the addition of mobile communication service providers and financial institutions.

What Benefits are You Offering to Your Customers by Investing in an eWallet?

• Easy accessibility

Using a mobile wallet for daily transactions is really simple to get started. Downloading the application and creating a user ID and password is all you need to do here.

It is as simple as logging into your Gmail or Facebook account from your smartphone.

• Easy to load money

You can easily add money to your wallet through online banking, credit card, or debit card.

Being able to store these details saves you the hassle of entering these details every time you make a transaction and saves time.

You can always hire iPhone app developer and tell him all your mobile wallet app requirements.

• Range of uses

From paying bills by DTH, postpaid, data card, and broadband to purchasing airline, bus, or train tickets, you can use an e-wallet for a variety of transactions.

From paying at local Kirana stores to paying for utilities like gas, water, and electricity, the reach of mobile wallets has become very widespread.

• Split bill service

Being able to split expenses with friends is another great advantage. Freecharge and Mobikwik users can split their bills by simply entering the amount and number of people expected to pay their share.

These wallets will automatically generate a link that you can send to people who owe you money.

• Ensure timely payments

You can also make use of the automatic payment feature to make future bill payments automatically from your wallet balance on a predetermined date.

• Incentives and promotions

Each wallet comes with its own set of incentives. E-wallets provide many avenues to save money through discounts, rebates, offers, and giveaways.

You can get the most out of it by checking your offers section and making optimal use of promo codes.

• Fast transfer of funds

Money wallets have made sending and receiving money quick and easy. And on top of that, there are currently no transaction fees charged for transferring money anywhere and anytime, making it a preferable option.

According to a development report, in 2020, 32% of consumers used the digital wallet as their preferred means of payment, while 78% of consumers said they knew the service.

Mobile apps like PayTM, RuPay, PayPal, Bhim, and GPay have given people better grounds.

What are the Industries that Benefit from the Mobile Wallet App?

It is true that mobile wallet applications are generally associated with the financial sectors, as it is all about the exchange of money.

However, these can also be used as a money transfer application in various fields such as:

• Retail sale

In retail, it can be used for mobile commerce stores or as a supplement to an existing mobile application.

Wallet applications in the retail sector help users to store vital information about their sales.

It also helps them profit from loyalty card payments, rewards, and coupons.

• Financial establishments

These establishments provide users with many facilities, such as debit cards, credit cards, and provide clients with administrations.

Logistics, transport, technology, and telecommunications companies are the main players in the financial segment.

They face the only odds of integrating multiple payment cards from different banks and financial institutions into the mobile wallet.

Key Factors to Consider When Developing Mobile Wallet App Solutions

Here are some key factors to consider when integrating mobile payments:

• Prioritization of functions

A mobile wallet application is basically a collection of different functions and features.

You need to be careful when integrating these functions and features, as they will eventually make your digital payment application successful.

Conduct thorough market research, learn customer expectations and demands and prevailing market trends before creating a mobile wallet app.

• Security: On priority!

Your digital wallet can only be successful if customers can trust its security structure.

E-wallets require customers to store their card information or enter their passwords.

It is your primary responsibility to ensure the security of your data through the use of advanced technological methods.

In addition to the standard security and protection mechanisms, it should include technologies that are difficult to crack.

You can always hire app developer for fulfilling these customer needs.

• Don’t forget to include a digital receipt

After each transaction made by users, they need to have a confirmation about the success or failure. This is where the need for a digital receipt arises.

Regardless of the amount they have made, it is important that they receive a digital receipt for their transaction.

These digital receipts can be emailed to the respective customer’s registered email address.

• Reward points are a bonus

People like to receive rewards, and if you are willing to make your digital payment application last longer, you should give rewards.

If you offer different advantages to your users, there is no way they will leave your website in the next few days.

However, you should keep in mind that they can check their reward points whenever they want and redeem them in better ways. At this point, you will need to understand your target audience, their likes, and dislikes.

• Keep them engaged

Share timely notifications with your customers about new offers they have. Share personalized coupons and offers with them to keep them engaged with your request.

It is often observed that users abandon an application after its first use. Keeping them informed with the latest deals and discounts can help you keep them engaged with your digital payment app.

It consists of a computer that operates on POS software, a barcode scanner, a credit card reader, a receipt printer, and an on-site server.

Mobile wallet integration for eCommerce applications has been around for quite some time. However, multi-utility mobile wallets have now become a necessity of the era. The need now is to understand what exactly users are looking for.

Let’s Learn What a User Wants from an eWallet

Before beginning the mobile wallet application development process, it is essential for you to understand the user base and market for digital payment applications.

There are different types of mobile wallets, and you need to understand which one fits your purpose.

The list of online payment methods mainly includes:

• Pay online

This is the most common payment method in which a user makes the payment through debit, credit card, and net banking.

This method involves digital payments to the merchant with the help of a payment gateway.

• Payments at the point of sale (PoS)

The POS system or a point of sale system is used to describe a system that includes various components such as hardware, software, analytics, inventory management, employee management, and reporting.

It consists of a computer running POS software, a barcode scanner, a credit card reader, a receipt printer, and a server on-site.

• Peer-to-peer money transfer

In P2P payments, digital money is transferred from one person to another via an intermediary, which is known as a P2P payment application.

This type of payment can be received through PC and mobile devices via the internet. It provides an easy alternative to traditional payment methods.

• QR codes

A QR code is simply a two-dimensional square-shaped barcode that has encoded data stored in it. Usually, the data is linked to a website. QR codes are mainly used for advertising purposes.

However, its other applications include email list segmentation, social sharing, print media tracking, and connecting brick and mortar.

• Mobile payments and wearables

The growing number of wearables is adding features like contactless payments with wearable apps.

Out of those mentioned above three, Point of sale technological solutions are considered a major concern, as it is comparatively difficult to build.

Are You With the Future?

Mobile Wallet Development: What does the future hold? Well, the future holds massive opportunities.

Mobile wallets are no longer just a trend; they have become a necessity of the time.

However, to enjoy the benefits of this rapidly evolving market, you must ensure flawless implementation of facts and features. Conduct the necessary market research to create an application for the mobile wallet solution.

A top mobile app development company in India can help you with the development of mobile wallet applications efficiently.

However, before finalizing a development partner, you should thoroughly study their profile and check if they have done similar projects in the past. Learning them will help you find a better digital payment solution.

Till then, that’s all folks!

FAQs

Q1: What is the future of mobile payments?

A1: The future of digital payments is here, and it can’t be stopped. From 2021–2025 the total transaction value will grow at a 12% CAGR! With the release of Apple Pay and Google Wallet, mobile payments is a fast-growing industry, and it doesn’t seem to be slowing down. 

According to Business Insider, 37% percent of smartphone users will purchase via their phones by 2020. Besides, the mobile wallet is rapidly replacing traditional payments in India, which has become more prevalent during the current COVID-19 crisis. As a result, we can expect that transaction volumes will top out around INR100 trillion (US$1.40 trillion) by 2024, according to GlobalData – a leading data analytics company!

Therefore, there is no denying mobile payments are here to stay as they provide convenience, security & speed for individuals who make payments via their mobile devices. 

Q2: Why is a mobile wallet important?

A2: Here are the top reasons why mobile wallets are essential:

1. A mobile wallet is your access point to all of your loyalty programs, coupons, and discounts, making it easier for you to save money.
2. Mobile wallets are secure; they use numerous layers of security that make identity theft or data breaches difficult.
3. You can use a mobile wallet on the go; it’s convenient when you don’t have your wallet or purse.
4. You can use a mobile wallet to pay for items from the original physical world.
5. Mobile wallets are a gateway to a cash-free society; once you’ve set up and configured your digital wallet, you’ll never need to carry cash again!
6. It saves you time; instead of pulling out your wallet every time you need to pay for something, simply pull your phone from your pocket!
7. Mobile wallets are static; they store all the information in a secure hard drive, so even if someone manages to steal it, there is no way they can access any of the information without knowing what they are looking for!
8. You can now use your mobile wallet to pay for services and bills instead of carrying around a bulky checkbook or bill folder!

Q3: What can a digital wallet hold?

A3: A digital wallet can hold most things, such as traditional forms of payment like credit and debit cards. It can also hold coupons and gift cards, or even information such as doctor’s notes; the possibilities are endless.

Q4: How did digital wallets start?

A4: Digital wallets began with PayPal, the first platform that allowed users to store payment information on the cloud. The user could then use this information to purchase items online from any device of their choice, whether it be a laptop or a phone. After PayPal introduced digital wallets to the world, many other companies followed suit, like Google Wallet and Apple Pay.

Q5: Is mobile wallet safe?

A5: Yes! Mobile wallets are safe. While it’s still vulnerable to security breaches, the technology has evolved to reduce the number of these problems – especially when compared to traditional credit/debit cards.

Q6: What are the issues in a digital wallet?

A6: The challenges of a mobile wallet include:

• Limited coverage: A digital wallet requires a strong data connection, limiting its ability in rural areas.
• Privacy issues: Smartphones can be easily lost or stolen, creating privacy concerns for users who may not want third parties to access their personal information.
• Compatibility issues: Mobile wallets can sometimes be incompatible with other devices, limiting their use.

Q7: What are the advantages and disadvantages of using mobile payment?

A7: The advantages of using mobile payment are:

• Convenience: Consumers can make payments quickly and easily, wherever they are.
• Control: Consumers can control their finances to keep track of their spending habits through technology.
• Accessibility: Mobile payment systems are available 24/7, making purchases possible at any time.
• Speed: It takes a short amount of time to make a secure payment with mobile payment.

The disadvantages include:

• Security risks: Cryptocurrencies are prone to cyberattacks, leading to the loss of personal information and other issues.
• Limited support: Not every retailer supports mobile payments, limiting their usefulness.
• Slow processing: Transactions can sometimes take a long time to process.
• Cost: It costs more for businesses to upgrade their financial technology systems to support mobile payments.

Q8: How do I create a mobile wallet app?

A8: Building a digital wallet is neither easy nor quick; it requires an app development company with the right tools and expertise. The process is done in several phases:

• Analysis: Research the app’s requirements and assess limitations.
• App design: Determine what the app should look like, how it operates, and what features will be included.
• App development: Build a solution to meet the app’s requirements and design specifications.
• Testing: Make sure that all necessary features of the app are working correctly.
• Deployment: Put the app into production and make it accessible via different channels, where it can be downloaded for use on different devices.

Q9: How much does it cost to develop an e-Wallet mobile app?

A9: This depends on the app’s complexity, your requirements, and what you want it to do. As a guide, building a mobile e-wallet app with basic functions could cost anywhere between $20,000 – $45,000. Whereas, building a complex app with high functionality can cost up to $80,000 – $1,50,000.

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