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How to build a mobile wallet app for Digital Payment Solutions?

Days are gone when people used to carry their physical wallets to complete their purchases. A big digital transformation is seen in the banking and financial sectors. Globally, the pandemic has sped up the adoption of the mobile wallet app.

Customers can easily make speedy and quarrel-free money transactions with the digital wallet solution. Google Pay, Amazon Pay, Paytm, PayPal, Apple Pay, etc. are prominent mobile wallet apps people tend to use.

What’s to Know About Mobile Wallet App?

The digital wallet app is a one-stop destination that allows users to perform contactless and cashless money transactions. The mobile wallet app is a prepaid digital solution where users can save their multiple banks or card details that can be use for sending or receiving money.

How Do Mobile Wallet App Solutions Benefit Users?

The mobile wallet market size exceeded $100 billion in 2020 and is expected to grow in leaps and bounds at over 20% CAGR between 2021 and 2027. The growing popularity of mobile wallet apps is due to their advantages.

  • Easy user registration with hassle-free and swift money transfers.
  • Multiple banks and cards details are stored in one place.
  • Easy contactless and cashless money transfers and payments.
  • Users can get various rewards, discounts, offers, cashback etc. using the mobile wallet app.
  • Mobile Wallet App Development includes tap-and-pay technology or scanning QR code which allow users to do contactless digital payments.

Worldwide Projected Growth to Invest in Digital Wallet App Development

Let’s look at the statistics which show mobile wallet apps have replaced the traditional method to make payments using the physical wallet.

  • In 2019 over 950 million users worldwide used mobile payment systems for their cashless transactions and assumed to increase by approximately 1.31 billion users by 2023.
  • The global online payment market size was valued at $3,286.52 billion in 2019 and is project to reach $17,643.35 billion by 2027, exhibiting a CAGR of 23.7% during the forecast period as per fortune business insights.
  • The Global Forecast Report shared by Market Research Future predicts that the e-wallet market will soar at a CAGR of 15% and is estimate to stretch around $2100 billion by 2023.

As per the research, the number of mobile payments will grow in leaps and bounds in upcoming years.

Types of Mobile Wallet App

The digital mobile wallet apps are directly connect with financial institutions and banks as the core function of any mobile wallet app is to perform cashless transactions like sending or receiving money, and making payments.

The following are different types of mobile wallet apps:

Mobile Operator Wallets

Users can send and receive money with the help of a mobile service provider.

Digital wallet mobile app

This is the common mobile application format. Using a mobile app, customers can send or receive payments easily.

NFC-Based Wallets

The mobile wallet apps can use NFC technology, which enables them to use contactless integration on payment terminals in stores.

Technology Used by Mobile Wallet App Developers

Digital Wallet Apps are easy to use where users can open the application by using Pin Code or fingerprint or password. Having an interactive and smooth user-interface design is not enough but it is also mandatory where users can make hassle-free, smooth and speedy transactions.

For smooth and swift transactions following are the basic technologies that are use by mobile wallet app developers to develop the digital wallet app:

NFC

NFC or Near Field Communication Protocol enables contactless money transfer that plays a major role in providing secure communication between smartphone and POS devices. It’s use for tap and pay features.

Bluetooth and iBeacon

iBeacon technology allows data transfer without using an internet connection. Most smartphones support iBeacon or Bluetooth technology. With iBeacon technology, merchants can send personal offers in advertising campaigns or discount coupons that are in the range of radio beacons.

QR Codes

QR codes are use for instant payments where users need to point the smartphone’s camera to a QR code to complete the transaction. This payment method requires an authentication technique like the user needs to enter the password or pin or fingerprint and the mobile wallet app will transmit the money.

Security Technology used to build Mobile Wallet App

Mobile Wallet App Developers need to use security technologies for data encryption for safe and seamless money transfers. Here is a list of some security technology that can be use during the development of a mobile wallet app:

Point-to-Point Encryption

Point-to-Point Encryption (P2PE) is a tool that protects seamless financial transactions. When the user swipes the phone over the POS terminal it starts encrypting transactions. The transaction is then transmit and needs authorization to transit the funds.

Tokenization

This technology uses a data encryption system that encrypts card information by turning it into a token which is a string of random symbols. All card information gets encrypt and turn into tokens.

Password

Password is one of the best-known ways to protect personal data. Users are allow to protect their data with passwords that include a rejection feature for too short and simple passwords. To increase the protection level and make the digital wallet secure, a strong password is mandatory.

Key Features to build a Digital Wallet

If you are interested in knowing how to build a digital wallet, don’t skip this part. The features of any application are connect to its functionality. Features that your mobile wallet app should have:

Onboarding and Easy Registration

Onboard the users who download the mobile wallet app with a short introduction showing the functionality of the application. New users can easily register to the application with a mobile number or email id.

Synchronization with Financial Details

The mobile wallet app must have the option of synchronization of bank and card details with more than one bank.

AutoPay Facility

This feature allows the user to make the bill payments automatically. It pays on a predefined date from the wallet balance and the users need not remember bill payment dates. In a way, the autopay feature ensures timely payments.

Promotional Campaigns

Promotional campaigns will help users to save money and tempt them to use the wallet app to make purchases. You can give cash backs, discounts, offers, membership, loyalty cards etc.

Push Notifications

This is a useful feature that notifies users about successful and declined payments. Moreover, offers and promotions can be sent to users through messages.

Passbook Feature

In this feature, a user can keep a check on the transactions done using the mobile wallet app. And addition to this, the user can also plan the budget and keep an eye on the expenses.

In Nutshell

Days are gone when people use to carry their physical wallets or pay their bills by visiting the payment center. The mobile wallet development company provides cost-effective on-demand mobile wallet apps. It is advisable to develop a user-oriented wallet app with interactive and smooth functionality and features.

Apart from market research, it is advisable to get in touch with an expert mobile wallet app development company to build a popular digital wallet app.

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