How to Make a Mobile Wallet App: Development Guide

Are you looking for ways to offer hassle-free shopping experiences to your buyers? Well in that case mobile payments are an ideal option as more people prefer cashless transactions. To have a competitive edge, one must have an online payment system as it improves sales and promotes cashless shopping.  Thus, all sizes of businesses prefer having their own mobile wallet app as it makes shopping convenient for the users and ensures the security of data. According to a report published by Grand View Research, the global mobile wallet market was estimated to reach $7.42 billion by 2022 and is expected to grow at a CAGR of 28.3% over the next 5-7 years.

Read this blog to get more info on the mobile wallet application development process.

Benefits of Mobile Wallet Apps

Mobile wallet apps let users store their payment information securely and enjoy hassle-free payments at the checkout points. Some of the benefits of such apps are:

Speed and Simplicity

The biggest and most prominent advantage of mobile wallet apps is that they are fast and make transactions easier. Mobile wallets make payments hassle-free compared to traditional methods as they use advanced technologies such as Near Field Communication (NFC) technology, QR codes, etc. This also reduces banking time there and improves the overall customer experience. In addition, mobile wallets can easily track expenses and manage finances, as they store digital receipts and automatically categorize expenses.

Convenience and Efficiency

The convenience and efficiency of mobile wallet apps are perhaps the most compelling reasons inspiring more businesses to launch their wallet app. These apps streamline the process of carrying out financial transactions and eliminate the requirement to carry physical, and other kinds of identification. By having a mobile wallet, one can easily store information digitally on a user’s smartphone, minimizing the risk of losing important financial instruments.

Improved Security

In the realm of mobile wallet technology, enhanced security is not just another feature, rather it’s a necessity. With more consumers relying on digital solutions for routine financial transactions, including robust security solutions is paramount. Among many, one of the main technologies used is encryption which keeps all the user’s personal and financial information safe and protected by changing it into a secure code. 

Moreover, biometric technologies like fingerprint recognition, facial recognition, and voice recognition are integrated into mobile wallets to ensure next-level security. Such integrations do not just improve overall security but encourage users to make transactions.

Increased Conversion Rates

With mobile wallet options, businesses also witness a higher conversion rate. This is possible due to the streamlined and simple checkout process. For example, when mentioning the credit card details at the online checkout, shoppers find it time-consuming and increases the chances of human error. This eventually leads to delayed checkout and abandoned carts as well. On the other hand, mobile wallets make transactions quite easy and seamless, with more transactions getting completed in less time.

Boost in Customer Loyalty

Mobile wallets boost customers’ loyalty as they can have personalized shopping experiences. Mobile wallets streamline the payment process, resulting in quick and more efficient payments, unlike traditional ways that were quite time-consuming. For instance, businesses can inform their customers about upcoming discounts, special offers, and rewards through this app. This not just personalizes the experience but also makes customers feel worthy, which is an important factor in building loyalty.

Additionally, the ability to track customer purchases and preferences via mobile wallets provides valuable data that businesses can use to tailor their offerings.

How Do Digital Wallets Make Money?

Mentioned beneath is a breakdown of how mobile wallet apps generate revenue:

Recharge services: Digital wallet companies start getting revenues by offering recharge services. Operators pay these providers a fee, varying between 2%- 3%, for each successful recharge completed through their platform. For example, mobile networks pay fees when customers recharge their mobile phones using a particular digital wallet.

Bill payments: Digital wallet companies also earn revenues through commissions on various bill payments, such as utilities or tuition. Service providers pay a fee to digital wallet companies for using these services.

E-commerce transactions: In online shopping, businesses offering mobile wallets can earn revenue by taking a percentage of the final selling price of products. The commission range varies from 1% to 20%.

Main Advantages of Mobile Wallet Applications 

Mobile applications can offer numerous benefits to businesses in almost all industries.

Accessibility

With mobile wallets, buyers don’t have to carry physical cards with them while doing day-to-day transactions. Just install a wallet app on the smartphone and create a user ID to make the transactions. Moreover, mobile wallets are used at a variety of places. They are used for purchases, buying tickets, paying for online services, etc.

Access to Money from Mobile

Users can start making mobile payments quickly. They just have to connect their cards to the digital wallet and make payments with smartphones.

Bills Splitting  

Based on where you are using the wallet app, you can add the functionality letting users split the bill and send a link to users for getting the payments.

Automatic Payments

Businesses can provide users with an option to set up automatic payments within the app so that they won’t forget about the same. This ensures timely payments.

Promotions & Offers

Digital wallets usually offer several promotions and discounts. You can reward users for buying at partners’ locations, making a certain number of monthly payments, etc.

Kind of Technologies Used in Mobile Wallet for Data Transferring

Without knowing the kind of technology used in building a mobile wallet app, creating an app becomes quite challenging. Mentioned below are some of the kinds of data transfer technologies used by the developers.

NFC

Near Field Communication Protocol or NFC technology allows contactless money transfer between smartphones integrated with NFC chips and a transmitter in a POS device. NFC connects to the transmitter in just a few seconds and one can easily transfer the amount as it relies on the card emulation technique.

By using this technology one can store card details digitally inside a mobile wallet application. While making the payment, the protocol seamlessly transmits data to the POS terminal.

Bluetooth and iBeacon Technologies

With iBeacon technology, one can easily transfer data without an internet connection. Majority of the smartphones today are equipped with Bluetooth, and thus iBeacon is compatible with all devices. Once the users activate Bluetooth, it communicates with an external BLE transmitter called a beacon. The POS terminal gets all the necessary data stored in a mobile wallet and transfers money.

Another use case of iBeacon technology is that it offers tailored offers and discounts when users come within the range of a beacon’s activity.

QR Codes

This payment mode is quite popular. Users just have to point their smartphone’s camera to a QR code for making the payments. To make payments through this payment mode, one has to provide a password or some other authentication technique for action confirmation.

Modern smartphones leverage the latest technology and are integrated with all the necessary chips to implement mobile wallets. The camera scans QR codes, facial recognition, Bluetooth-enabled iBeacon technology, and fingerprint scanners to make payments.

How to Make a Mobile Wallet App? Check All Details Here

The steps one must follow while designing a mobile wallet app are explained below. The app developers follow all these steps while designing the app.s

1. Market Research

The application development process begins with market research and competitor analysis. At this stage, the developers must understand the key market and industry they are developing for. Know your target audience and your competitors as this conceptualizes your application accordingly. By thoroughly researching the market, one can understand what potential users look for in a mobile wallet app.

The information obtained at this stage smoothes the designing and development process and ensures that the app aligns with the business requirements.

2. App Concept Finalization

The next important step is app concept finalization where you need to work on the USP (Unique Selling Proposition) and how it is different from your existing competitors. Focus on the core areas that make your app best and most outstanding among the existing ones. With the availability of numerous digital wallet options, it’s important to pinpoint what sets your app apart. Define your wallet app’s unique digital wallet features before diving into development. Clearly talk about your app’s differentiation to enhance its competitiveness.

3. Hire the Best App Development Company

The next step is to take the technical assistance of the experts who can turn your vision into reality. Hire an app development company that has expertise in creating a customized wallet for you. Look at the company’s portfolio and customer reviews. Ask for relevant experience and expertise on similar projects.

4. Tailor UX/UI Design

User experience UX design plays an important role in mobile app design. It includes the overall look and feel of the wallet app and the flow and functionality of the various app’s features. At this phase, user testing is done thoroughly to create a user-friendly design that meets the needs of its target audience. Overall look of the wallet app creates the first impression of a mobile page. Give preference to the user interface and it must be feature-rich, user-friendly, and attractive.

The designing phase consists of creating a user interface and user experience that offers an intuitive and visually appealing application for users’ interaction. This phase also lets businesses create a brand logo, application icon, buttons, and other digital wallet features making your app different from competitors.

5. Mobile Wallet App Development

Developers then use UX wireframes and UI mockups and integrate the same with the application. An important step is to create an outstanding digital wallet and deploy the necessary end-user features. The features include adding an informative transaction history, attractive rewards, easy trackers, etc… Focus on the app’s security to protect user funds and maintain trust. Hire expert developers who include robust security frameworks to safeguard user funds effectively.

6. App Launch & Promotion

Launching a mobile wallet app requires detailed preparation and planning. This includes designing a marketing strategy, creating promotional materials, and preparing the app distribution strategy for app stores. At this stage, the app is reviewed thoroughly before the launch date, this stage is important as it ensures that it meets all app store guidelines and requirements. A comprehensive marketing strategy consists of various parts including content marketing, SMM, paid ads, etc.

Since mobile wallets play a crucial role in mobile application development, businesses must choose popular app stores such as Google Play and Apple Store for app launch. By doing so, you make your wallet application easily accessible for download, based on their respective operating systems. Launching your wallet app successfully on such platforms boosts your app’s visibility and allows you to reach a broader audience.

7. Continuous Development & Support

The development process doesn’t stop post the launch of the app, rather it is a continuous process. Thus, look for a company that offers ongoing support and development to ensure the smooth running of your wallet app. Consider the feedback received from the users and make the changes wherever required.

How to Create a Digital Wallet: Hire Experts

Mobile wallet application development is not as a simple process as it might look to many. It consists of numerous stages that gradually convert your app idea into the development phase.

Appointing an expert application development team is crucial as the experts can create a competitive product. Kodehash Technologies has the expertise you need and excels in delivering cutting-edge technology and innovative business solutions. Rapid Innovation not only speeds up the development and deployment of new technologies but also ensures that these innovations are implemented efficiently and effectively within the mobile wallet apps.

Connect with us today to discover how we can help you make a digital wallet that will exceed your expectations.

Mobile Wallet App: FAQS

What is a digital wallet?

A mobile wallet is a digital way to store credit, debit, ID, and gift cards so that buyers can easily make purchases using a mobile smart device rather than a physical card. To create a digital wallet, one must team up with a reliable app development team that can design and build the application.

What is the benefit of mobile wallet applications?

The main benefit of using an e-wallet for business is that online payment apps are much faster than cash or a credit card, especially while using the contactless payment option. 

Name the most popular mobile wallets?

 Mobile wallets let users make in-store payments without having to carry cash or physical credit cards. The most famous mobile wallets today are Google Pay, Apple Pay, Samsung Pay, and PayPal.