In a world where more and more people use smartphones, it’s no surprise that digital wallets are becoming increasingly popular. A digital wallet is a particular app that can make shopping online or in-person much easier.
This blog post will discuss the must-have features of a mobile digital wallet app when developing the technology and why they are so important. We will also explore the benefits of having a digital wallet app on your mobile device.
Also read: Digital currency vs. cryptocurrency
What is a Mobile Digital Wallet?
A mobile digital wallet is a type of internet application that allows you to store your credit cards, debit cards, and other important information in one place. Mobile wallets can make shopping online or in-person much easier. In addition, mobile digital wallets often come with built-in security features to protect your information.
Generally, fintech developers are always looking for ways to improve their apps and increase user traffic. Usually, the best way to attract new users is to refresh the features of mobile wallets.
The Future of Digital Payments
While digital payments have been steadily increasing over the years, the COVID-19 pandemic has resulted in a significant increase in the use of digital wallets. According to recent data, digital wallets are expected to become a $3.5 trillion industry by 2023 and $4.6 billion by 2025.
The increase is likely since many people are now working from home and shopping online more often. However, no matter the exact cause of the dramatic increase, there’s no doubt that digital wallets are here to stay. As consumers and businesses prioritize contactless payments, the demand for reliable and secure digital wallet apps grows.
There are many different digital wallet apps currently available on the market today. However, not all are created equal; some have more intuitive designs than other competing platforms. Some popular digital wallets are:
- Apple Pay
- Samsung Pay
- Andriod Pay
Observe the graphic below to see global mobile payment methods worldwide in 2020.
As you can see, mobile wallets are becoming increasingly popular in developed nations. However, China and the Far East are projected to lead the way in terms of mobile wallet transactions. Recently, at least 47% of China’s population has been using mobile wallets for their daily transactions.
The Benefits From A Mobile Digital Wallet
Mobile wallets are digital wallets that securely store payment card information on a mobile device. However, a digital wallet is not just a convenient way to keep your credit cards and other important information.
It’s also a powerful tool that can help you manage your finances. For example, many digital wallets allow you to track your spending, set budgets, and even get cash back on certain purchases. You can also easily split bills with friends or family members with a digital wallet.
Digital wallets are also secure. When you store your payment information in a digital wallet, it’s encrypted and protected by multiple layers of security. This makes it much more difficult for criminals to access your data. In addition, if you lose your phone, you can usually remotely disable your digital wallet so that no one can use it.
Features of mobile wallets are also quite informative. For instance, fintech developers can use the data collected by the app, such as where the consumer shops, how much they shop, to increase the app’s functionality. In addition, offering frequent updates and services designed directly from consumer reviews will help drive traffic.
Must-Have Features Of A Mobile Digital Wallet
Before beginning a fintech development process, you’ll want to ensure that you understand the user requirements first. For instance, digital wallet apps will use one or a combination of these data transfer methods.
- NFC – Near Field Communication Protocol allows for transfer between a smartphone with an NFC chip and a POS device.
- Bluetooth and iBeacon – data transfer without an internet connection; all smartphones have Bluetooth and are compatible with iBeacon.
- QR Codes – The user enables camera access and scans a QR code that will then initiate the transfer of money
- P2P – Peer-to-Peer money transfer is via a payment app from one person to another.
When developing fintech solutions for a flexible digital wallet, it is crucial to consider the following features:
One of the essential features of a digital wallet app is security. With so much personal and financial information stored on consumer mobile devices, you want to be sure that it is safe from hackers and other criminals.
Build an app that uses multiple layers of security, such as encryption, fingerprint authentication, other biometric factors, and two-factor authentication. Examples of security technology are P2PE (Point-to-Point encryption), Tokenization, and good old-fashioned Passwords.
Ease of Use
Another important consideration is the ease of use. When developing a digital wallet, developers need to ensure that users can easily add, remove, and manage their payment information. Build an app that has a user-friendly interface and is simple to navigate.
Some digital wallet apps offer rewards to users for using the app. This can be a great way to encourage customers to use your app instead of competitors. Consider offering cash back, points, or other incentives to users.
Developers need to design a system that will be able to provide customer support when needed. Support may include a FAQ section, bot chats, live chats, or even a call center.
Another great feature of mobile digital wallets is storing digital receipts. A digital receipt is more secure, and you can simply pull it up on your phone whenever you need it.
A Brief Overview Of The App Development Process
Now that you understand the must-have features of a digital wallet app, you’re ready to start the development process.
The first step is to create a detailed app development plan that considers your budget, timeline, and resources. You can call this stage the Discovery stage. You can’t skip this step. Often you will do a market analysis, competitor analysis, functional specifications, and product backlogs.
Next, you’ll need to choose the right technology stack and tools for your project, including the front-end and back-end development. When considering SDKs, here are a few examples:
- Braintree SDK
- Paypal Mobile SDKs
- Stripe SDK
- Visa SDK
After the SDK is finalized, it’s time to build out the app. The building includes designing the UI/UX, coding, testing, and finally, deploying the app to the App Store or Google Play.
One last thing to keep in mind is that you will need to market your app. Marketing is an ongoing process that should start well before the launch date and continue long after. Plus, you will need to continue to provide ongoing support such as app updates, implementing user feedback, and engaging with the community.
Digital Wallets Aren’t Going Anywhere
Digital wallets are expected to become a US$ trillion industry in the next few years. With so much money moving around, you must develop a secure and easy-to-use app. Keep these must-have features in mind as you build your app to create a convenient, safe, and user-friendly experience for your customers.