eWallet App Development: Securing Success with the Right Strategy

Denis Astapchenia

Denis Astapchenia

Director of Financial Technologies

Financial Services
Jun 2, 2022
10 minutes to read
views
  1. eWallets: virtual storage for money
  2. eWallets: insights into how they function
  3. Typical transaction methods
  4. eWallet mobile app development: primary product types
  5. Key branches fuelling eWallet app development
  6. Mobile wallet development: a 10-step guide
  7. Things to consider when crafting an eWallet
  8. Estimating eWallet costs
  9. Partnering with an experienced eWallet app development company for success
  10. Conclusion

Forward-thinking businesses and individuals want convenient and instant payments. That's why they use digital wallets to carry out transactions within a single app.

According to Statista, in North America these services will have grown significantly by the end of 2025, doubling the figures from 2020. The Asian market will experience even more substantial growth.

Mobile wallet market

In this article, Andersen's FinTech experts shed light on eWallet app development.

eWallets: virtual storage for money

A typical mobile wallet has certain essential features. At its core, an eWallet is an application that enables people to keep their debit and credit card information on their mobile phones or other devices. Such software also facilitates transfers to sellers, friends, or family members via QR codes or other means.

A key advantage of these products is their convenience. A person can pay for things they need anytime, anywhere—simply by accessing the app, without physical money. Reliable digital solutions also offer rock-solid security with encryption technologies and authentication mechanisms, e.g. biometrics and PINs.

As eCommerce expands globally, such products are becoming indispensable. They facilitate personal finance management and drive business growth. Therefore, more and more organizations are cooperating with IT providers offering eWallet app development services to craft innovative solutions.

The following facts prove that such digital products are gaining global recognition:

  • By 2024, digital wallets will be the primary payment method for more than 33% of customers buying things in stores;
  • In Asia, they account for almost half of all point-of-sale payments;
  • The worldwide market is currently seeing an annual growth rate of 28.2%.
Ewallet development

eWallets: insights into how they function

eWallet mobile app development is in demand because of the ubiquity of mobile payment solutions. But how exactly do they work?

Mobile wallets rely on seamless integration of software and hardware. During user registration, an app opens a secure virtual account that links to the device and relevant financial accounts. Professionals engaged in the development of wallets implement encryption and tokenization—thus they secure top-notch data protection.

To benefit from such a solution, users simply fund their account by connecting it to a payment source. Balance tracking provides real-time visibility. Initiated transactions are authorized via PIN or biometrics for security.

The app then handles fund transfers, accurately processing vital details after verifying the balance and recipient info. Digital ledgers are updated, and confirmations are sent to all involved parties.

Robust error detection capabilities minimize failures from issues like insufficient funds or connection problems.Ongoing security audits and updates help maintain an impenetrable firewall around sensitive data and operations.

Thanks to eWallet mobile app development, users receive a seamless, safe, and smart means for on-the-go online payments and financial management.

Typical transaction methods

Professionals specializing in eWallet app development implement the following transaction methods:

  • NFC

With this powerful technology, payments are just a quick tap away. Embedded chips allow mobile phones to communicate when in close proximity, enabling seamless checkout without touching screens or swiping cards. But old mobile devices may lack this functionality.

  • Ordinary mobile wallets

Legendary solutions from Apple and Google have taken digital payments mainstream. By storing credentials on mobile devices, they allow for swift in-app purchases with maximum security.

  • Audio-based operations

Sound waves make the transmission of data between devices possible—something that seemed to be science fiction just a while ago. This audio-based connectivity enables seamless purchases.

  • Internet banking

Tools of this kind allow for internal account-to-account transfers and sending payments to external recipients. Account linking, multifactor authentication, etc. ensure operational safety.

  • Carrier billing

Allowing people to buy things by being charged directly to their mobile bills opens purchasing options to those without conventional means of payment.

eWallet mobile app development: primary product types

Modern mobile products can be divided into four categories:

  • Closed eWallets: These tailored solutions address the needs of a certain organization. Being the exclusive transaction channel for its clients, they streamline processes like refunds and the buyer’s journey within one digital product. A perfect example is Walmart Pay.
  • Semi-closed eWallets: Used by business chains and collaborating companies, these often circulate in the same geographical area. People transfer funds to a centralized escrow account belonging to the digital PSP. Paytm and Oxygen perfectly show the potential of these platforms.
  • Open eWallets: Such solutions cater to numerous independent organizations within a single app. They are widespread, with such legendary examples as PayPal, American Express, Amazon Pay, and Google Pay proving their impressive capacities.
  • Cryptocurrency eWallets: Exodus, Coinbase, and Electrum are known for their robust protection mechanisms in handling crypto trading and other cryptocurrency transactions.

Key branches fuelling eWallet app development

eCommerce

The explosive rise of this sector is a major driver behind the development of eWallets. As shopping shifts online, the importance of secure payment options grows by leaps and bounds. Software solutions allow customers to check out seamlessly across retailer websites and apps without providing card details repeatedly. One-click payments ensure frictionless operations. One can also make purchases through social media platforms and ads.

Food and delivery

Delivery apps have become fertile ground for eWallet integration. As consumers increasingly order meals and beverages via the Internet, the need for fast and secure in-app payments reaches new heights. Customers want convenient electronic settlements for deliveries without the hassle of physical money. Feature-rich products solve this problem by enabling upfront digital payment. Options like repeat order history and one-click checkout streamline re-ordering and payment.

Transportation

Urban transportation is also one of the key development catalysts. Ridesharing services have built-in m