A cashless transaction is more efficient, secure, and time-saving than a traditional one. They are the product of technological progress and are a feasible alternative to traditional cash settlements.
Regarding making cashless purchases, e-wallets are currently the most widely used method. Statista reports that it accounts for more than half of all e-commerce transactions. In this article, we’ll talk about how to create a wallet app.
Mobile Wallets- Statistics And Market Cap
Over 40% of U.S. smartphone users made contactless payments in 2021, 67% of retailers accept the payment method, and the average annual spend per mobile wallet user is projected to reach $2,439.68. These statistics demonstrate the rapid expansion of the mobile wallet app development market (you can find the details in the Topflight article). This demonstrates the rising importance of electronic wallets in the current financial system.
Exploring Mobile Wallet Applications For Phones
Before you decide to create an e-wallet app, understand the various types of mobile wallet applications for mobiles:
Closed Wallets:
A closed wallet is an e-wallet that is issued by a firm and can only be utilized within that company’s environment for purchases, rewards, and refunds. It is vendor-specific and cannot be used for cash withdrawals or elsewhere. Examples include Walmart Pay. If you are a large corporation, e-commerce provider, major online store, or franchise, consider implementing a closed mobile wallet app for your business.
Semi-closed Wallets:
Similar to a traditional closed wallet, a semi-closed wallet can be used in multiple stores by forming strategic partnerships. Users can’t get their money back or withdraw it, but they can use the wallet to pay in full or in part for items on certain websites. Citrus Pay is an example of this idea because it works with PVR, Inox, and Sun Direct. Payment processors, large online retailers, and innovative financial technology companies can all benefit from creating “semi-closed wallets.”
Open Wallet:
Any user with access to an app store can download a universal digital wallet that can be used to make payments anywhere that accepts this mode of payment. As an example, consider the popular and trustworthy payment system PayPal. Only financial institutions or their partners are allowed to develop open e-wallet apps.
Understanding The Functions Of E-Wallet Apps
E-wallet apps perform a variety of critical roles in the digital landscape. They facilitate hassle-free electronic transactions for things like online shopping and paying bills, and they provide a safe way to store money. These apps enable speedy peer-to-peer money transfers, making activities like bill sharing easier. Contactless payments are supported by e-wallets via NFC technology, making in-store transactions more efficient and secure. They are extensively utilized for shopping online since they provide a more efficient checkout experience. Furthermore, some e-wallets offer rewards and cashback programs, assist with financial management, prioritize security, link with numerous services, and even handle international transactions and currency conversions, increasing their versatility and customer appeal.
What Industries Are Benefiting From Digital Wallets
- Restaurants: Both online and offline restaurants benefit from contactless payments and the option to split bills.
- Travel: E-wallets streamline online travel-related transactions, from buying tickets to booking hotels, making payments convenient anytime, anywhere.
- Entertainment: E-wallets enhance monetary operations for services like buying event tickets, party planning, and masterclasses, delivering a seamless shopping experience to customers.
- E-commerce: Large merchants can invest in closed or semi-closed wallets, while small to mid-sized companies can connect existing wallets to collect payments globally.
- Fintech: Banks and financial institutions offer online financial services with built-in wallets for P2P transfers, mobile top-ups, and bill payments.
- Transportation: Whether in freight or passenger services, e-wallets simplify payment processes for taxi and delivery companies, ensuring safety and convenience.
Money Transaction Methods Available With Mobile Wallet Apps
NFC
This type of payment uses contactless chip technology and requires the payment terminal to be within three to four inches of the chip terminal. This capability is rapidly being built into modern cell phones to facilitate faster and safer transactions between buyers and sellers.
Internet banking
This practice has been around for a while, with the majority of national and international financial institutions now necessitating the use of Internet banking. To add a payee, users must first enter their information accurately before receiving a one-time password (OTP) on their mobile devices. The recipient gets added to the list of approved payees once a certain amount of time has passed.
Soundwaves based payments
The new approach allows transactions utilizing sound waves produced by a smartphone, which can greatly improve the convenience of contactless payments. It can be used with any electronic device, from smartphones to basic phones to credit card readers.
Carrier billing
This simple way of online payment is often used in areas with limited access to financial services. Users can make purchases and request that the bill amount be added to their monthly phone bills.
Salient Characteristics Of Digital Wallet
In order to create a digital wallet, you should have a firm grasp of the characteristics of mobile wallets for users, admins, and merchants:
User-side of wallet
- Sign-up/Login: Enable users to register via social media accounts, email, or create new accounts easily.
- Add Bank Account: Allow users to link their existing bank accounts to the mobile wallet.
- Deposit: Provide a seamless method for topping up e-wallet balances.
- P2P Transfers: Implement a straightforward way to send money by entering a phone number or account details.
- Bill Payments: Include the option to pay utility bills from the mobile wallet conveniently.
- Split Bills: Facilitate group payments by offering a bill-splitting function.
- Bonuses: Reward users for maintaining a certain balance or referring friends to the app.
- Payment History: Enable users to review their transaction history for financial analysis.
Admin-side of wallet
- Dashboard: A tool for conveniently managing customers, sales, and earnings.
- Users: Admins can create and assign roles to users, including merchants.
- Earnings: Users can view income for specific periods and analyze its origins.
- Analytics: Visual reports offer a comprehensive view of business performance.
- Promotions: Manage and add offers within the mobile wallet app.
- Security: Admins promptly detect app issues and collaborate with the tech team for solutions.
Merchant-side of wallet
- Dashboard: Provides sellers with a comprehensive view of sales and financial activity.
- Profile: Stores seller information like organization details and bank information.
- Add Products: Enables sellers to add and edit their product listings.
- Create QR Code: Allows sellers to generate QR codes for accepting payments.
- Manage Customers: Merchants can add, edit, delete customers, and view their purchase history.
- Send Money to Bank Account: Facilitates quick transfers from an electronic wallet to a bank account.
- Loyalty Program: Offers bonuses and discounts to loyal customers through the app.
Layman Steps Of How To Create A Wallet App
To build your own e-wallet, follow the guidelines below:
Step 1: Defining the features
To get started, write down everything that will be included in your wallet app. Consider the most important features, such as the ability to make digital payments, peer-to-peer transfers, bill payments, and safety precautions. App functionality should be clearly defined in light of user requirements to simplify the development process.
Step 2: Choosing development platform
Choose the right framework for creating your wallet app. Choose between developing an iOS or Android app or a web app. Which option you select is dependent on your target audience and the devices they prefer to utilize.
Step 3: UI/UX design
Build a mobile wallet app with a simple interface (user interface/user experience) that works flawlessly for the end user. Focus on things like intuitive interfaces, attractive designs, and simple use cases. User adoption is directly proportional to how nicely the interface is built.
Step 4: Backend development
Create the supporting systems for your wallet app. This involves the development of user accounts, transactions, and data security databases, servers, and application programming interfaces. The functionality of your app hinges on the quality of the backend development.
Step 5: Frontend development
Focus on the user experience and interaction design of the wallet app’s front end. Execute the designs produced during the UI/UX design process. Ensure the app’s user interface is adaptable and works well on various devices.
Step 6: Payment gateway integration and security measures
Make in-app purchases possible by incorporating a payment gateway. Safeguard user information and financial transactions by using strict security methods like encryption, two-factor authentication, and fraud detection.
Step 7: Testing and QA
In order to find and fix any problems with your wallet app’s functionality or security, you should give it a thorough test run. Perform usability testing to guarantee a satisfying encounter for the end user.
Step 8: Deployment
Once your wallet app has passed testing and quality assurance, it can be released on your chosen platform(s). Verify that it complies with the specific requirements of each app store. Monitor its performance and user input to make necessary modifications and updates.
We hope this guide will help you clear your doubts on how to create a wallet app in 2023.
And this article will be a useful addition for anyone who plans to delve deeper into the study of FinTech and cryptocurrencies: https://topflightapps.com/ideas/how-to-build-a-crypto-wallet-app/
