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A Brief Guide to Mobile Wallet App Development or E Wallet App Development

Types of Mobile Wallet Apps:

• Closed Wallets : These are the type of wallets issued by established companies like Flipkart, BookMyShow, etc. Closed wallets are online accounts that a company uses while transacting with its customers. In the case of cancellation of a service or product from a customer, their refunds are managed through closed wallets.
• Semi-Closed Wallets : These are the most prevalent wallets in the system. Google, Apple, and Android Wallets fall under this category. One can use them to transact online and offline while paying for services or goods, accessing financial services, and much more. However, it is necessary that the merchant adheres to the contract with the E-wallet service provider to support transactions through these payment instruments.
• Open Wallets : This category of wallets permits a user to carry out all the transactions of the ‘Semi-Closed’ wallet and allows the user to withdraw money from ATMs and transfer funds. Though, they can only be issued by a bank or in a partnership with a bank. For example, i-Mobile by ICICI or M-Pesa by Vodafone.

Statistics:

1. In 2020, the total transactional value of the digital payment segment is approximated to reach 4,406,431 million USD.
2. The CAGR between the years 2020-24 is projected to be 17%. This would result in generating revenue worth 8,266,971 million USD by 2024.
3. Up from 24% of merchants accepting e-wallet payments in 2015, the figure has increased to 29% in 2018.
4. By the end of 2016, the revenue generated from mobile wallets on e-commerce platforms in the US was 22.7 billion USD.

How do Industries Benefit From Mobile Wallets?

• Retail & E-commerce Businesses :
  Retail & E-commerce businesses engage in a lot of transactions. Along with, the conventional ‘cash on delivery’ and ‘debit or credit card’ payment options mobile wallets act as a healthy addition to the mix. Especially, after the introduction of the Unified Payments Interface (UPI) that promotes real-time instant transferring of funds.
• Telecommunication Companies :
  The telecommunication companies are on a roll. The mobile wallets support bill payments, recharges, and even transferring money to each other. Gone are the days when the customer had to seek a merchant or scratch a card to avail of a recharge.
• On-Demand Services :
  Any on-demand services like food and grocery delivery can function much better by providing users with more options to make their payments. The expression ‘the more the merrier’ works best to explain this situation.
• Financial Organizations :
  In this digital age, credit or debit cards are used globally to make payments. To add a little more convenience to the user’s life financial companies integrate mobile wallets that provide customers with direct access to make transactions.
• Logistics & Transport Companies :
  One must have noticed the mobile wallet payment option while using OLA or Uber. OLA has created its e-wallet app that goes by the name ‘Ola Money’. This speaks volumes about how e-wallets are shaping the future of online transactions.

How to go about Building a Mobile Wallet App or E-Wallet App?

1. Creating a mobile wallet is not a piece of cake. The foremost reason for that is, one would require a good legal team that has sound knowledge of how to seek appropriate permissions before one even initiates the development process. For example, you have to apply for a license with the Reserve Bank of India to launch a mobile wallet app in India.
2. A mobile wallet company also studies the psychology of how its customers spend their money. This helps them primarily in adding or suggesting services and products based on the customer’s spending behavior.
3. But, this isn’t enough. The supreme requirement for an e-wallet company would be the platform that would allow a user to make any of their transactions. To achieve this goal one would have to invest in a sturdy and adaptable tech that becomes an efficient reflection of the services the e-wallet company is trying to offer.
4. You need to have an experienced IT team to build a highly functional mobile wallet app or a webpage. One that has had considerable experience with creating e-wallets. You can also opt for a professional IT service company that will assist you in mapping your e-wallet business model on appropriate platforms.
5. Any app or web page development process is based on the Business Model of that particular business idea. Let’s catch a glimpse of the same.

E-Wallet App Business Model

All customers won’t withdraw or use the money from the wallet at the same time.

All customers won’t withdraw all the money from their wallets at the same time.

Commission based revenue :
Nowadays everyone is prone to use e-commerce websites like Amazon or Flipkart. The mobile wallet companies charge commissions to these e-commerce channels when users pay using their platform.
You also get charged if you transfer funds back to your respective bank account from the e-wallets.

Interest-based revenue :
Unlike a bank, mobile wallets don’t pay you interest in keeping money in your wallet. But a mobile wallet company does deposit its clients’ money in a bank’s Escrow account. The bank would in return pay interest to the respective mobile wallet company. While the users whose money is deposited don’t earn any interest.

Ads based revenue :
You might’ve noticed plenty of ads while using a mobile wallet. The company promoting itself also pays the respective e-wallet company to use its platform for promotion.

Revenue from other businesses :
Paytm (an Indian mobile wallet company), has transformed an e-wallet app into a joint e-commerce app. There is a wide scope for introducing new businesses with a mobile wallet app. Hence, they can also earn revenue by adding different services or products to their platform.

Product Roadmap

A product roadmap is one of the first things that a developer or IT service provider plans while beginning with any app development process. A path that would plan how they would reach their desired goal.

We at Technource follow the Agile-Scrum Framework that acts as a guide for our app development process. Agile becomes a base for values and principles that guide the development process while Scrum acts as a framework that deploys tangible software solutions.

Scrum offers a transparent and iterative process. This allows the development team to avoid recurring problems they face with Waterfall Models. A detailed explanation of our core development process can be learned here.

Scrum offers a transparent and iterative process. This allows the development team to avoid recurring problems they face with Waterfall Models. A detailed explanation of our core development process can be learned here.

Mobile Wallet or E Wallet App Features:

Customer App Features:

• Easy sign-in/ sign up
• User profile
• App Security (Fingerprint or eye scanner, pattern or pin locks)
• Wallet top-up/ Passbook
• Integrating bank accounts/ Account management
• Secure Payment Gateway
• Dashboard
• Scan to pay
• Push notifications

Merchant App Features:

• Sign in / sign up
• User management
• Profile Management
• Add or remove products
• Bank account management
• Loyalty Points
• Intuitive dashboard

Admin App Features:

• Sign in
• User management
• Revenue management
• Merchant management
• Data analytics
• Security management
• Offer management

Why work with Technource?