According to a report by Statista in 2018, E-wallets were the second-most preferred mode of payment, occupying a 39% share among customers. While credit cards occupied the top spot with 42%, the dynamic world is transforming at a massive rate. With people leaning towards online services, digital wallets will become inevitable in the upcoming years. The market for digital payment apps forecasts unprecedented growth, and it is high-time entrepreneurs initiate their mobile wallet app development.
Although a relatively new concept, electronic wallets can be the perfect reply to the future of payments. The ‘Smartphone Spree’ is on! These gadgets are replacing traditional businesses, and another essential element that has succumbed to this modern advancement is wallets! Yes, why carry a wallet and a smartphone when the latter can culminate with the former? Mobile wallets are becoming more prevalent with each passing day.
Are you an entrepreneur aiming to storm into the market of mobile wallet apps? If so, you need to know the ins and outs of app development. This blog discusses the features, different types, and income-generating sources to consider while developing a mobile wallet app.
Analyzing The Market And Market Players
According to a report by Statista, only 13% of online users paid using mobile wallets for their online purchases in 2016. Within a couple of years, this number rose to a significant 29%. Increased smartphone penetration will indispensably result in the massive growth of the mobile wallet app market.
According to Allied Market Research, the global mobile wallet market will grow from $1.043 trillion in 2020 to $7.58 trillion by 2027. With a healthy, double-digit CAGR of 28.2%, there’s no stopping this technological wave.
When looking at market players, three top players are occupying a predominant market share. They include,
- PayPal: Known best for its seamless international transfer, PayPal has been a pioneer in digital wallet apps. PayPal is one of the Fortune 500 companies, with over 305 million active users as of 2019.
- Venmo: Venmo is a market leader when it comes to ecommerce mobile wallet apps. The platform handled 12 billion in transactions in Q1 of 2018. Although owned by PayPal, the platform has around 40 million users.
- Google Pay: One of the highly-secured mobile wallets is Google Pay. The efficient platform uses NFC for transactions, making it highly reliable. Spread across 28 countries, the platform has 75 million active users in May 2020.
Get to know the different types of digital wallet apps
While there are numerous ways to classify digital wallet apps, delivery technology is ideal for classification. The popular types include,
- NFC technology:
Near Field Communication (NFC) technology makes use of two closely located devices for transactions. The data exchange takes place between gadgets of proximity. The technology promises a high level of security. Samsung Pay, Apple Pay, etc., make the best use of NFC technology.
- QR code technology:
Also known as the optical technology, here, transactions are made by scanning the QR code of one party by the other. Merchants of various businesses use this QR code technology for seamless payments. Walmart Pay, WeChat Wallet, etc., are examples of digital wallets using QR code technology.
- Digital delivery technology:
This type uses the Internet as the medium of transactions. Payments of goods and services to a virtual platform is based on digital delivery technology. Real-life implementation of this technology is very complicated, and hence it is rare in use. Online payment providers like PayPal, Alipay are based on this type.
- SMS-based Payment technology:
In places where there is poor Internet connectivity, SMS-based payment technology can do the trick. During transactions, messages are used to confirm payments. P2P marketplace sites like Mobile Money, Tigo, etc., use this technology.
Features that shape a digital wallet app
Creating a visual appeal among the audience is vital to ensure a platform’s success. Some of the features worth-considering during e-wallet app development include,
- Digital invoices: Users need to know the details of the transactions and store it securely for future needs. Generating digital invoices is an ideal way to do so
- In-app chat/call: Enhancing customer engagement rates is a piece of cake with this in-app chat/call feature. Users can communicate with one another and reach out to the support team in case of any queries.
- Push notifications: Users expect instant updates on transactions from the digital wallet platform. Push notifications are a great way to send instant alerts.
- Payment history: Users can generate a detailed report on their past transactions seamlessly by viewing payment history. This makes the platform highly reliable and transparent.
- In-built exchange rate calculator: In order to gain a global presence, the app must support multiple currencies and exchanges. The in-built exchange rate converter provides detailed insights on various currencies and their conversions.
Do not forget to monetize your mobile wallet app
To sustain your business for an enhanced timeframe, you need a consistent income source from your business. With an ultra-modern mobile wallet app, you can gain revenue from not one but a variety of sources. It is up to the entrepreneur to decide the revenue streams during mobile wallet development. They include,
- Merchant charges: With people preferring mobile wallet payments, merchants need to have this payment gateway to enhance the satisfaction of customers. Hence, merchants give up a percent of customer payments as merchant charges.
- Instant transaction fees: For instant transfers, you can levy a transaction fee from customers. This adds to your income tally as well.
- In-app ads: Advertisements can help you gain a steady source of income with your platform. By displaying third-party ad banners, you can generate ad charges based on views, impressions, clicks, etc.
Digital wallet apps are growing in numbers, following their massive reception among the audience. Entrepreneurs needn’t wait any longer as the market is witnessing a massive surge. Choosing the right feature-set and implementing the most-optimum revenue streams can enable a mobile wallet app to gain instant traction. Reach out to an app development company, tell them your needs, and initiate your mobile wallet app development today!