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With the advent of technology, every aspect of our life is consistently revolutionizing. Gone are the days when people used to carry funds with a fear of cut loot and visit a bank for payment transfer. Now with the evolution of digital wallet apps, people can carry unlimited funds and transfer them securely to anyone from anywhere at any time.
Situations like the pandemic led to a sharp rise in the increase of digital wallet users to reduce the spread of deadly pathogens. Hence from small street vendors to big businesses made it possible for their customers to opt for contactless payment methods.
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Some interesting facts and stats about e-wallets
A recent study states that 32% of millennials are ready to get into a cashless culture where the physical currency will no longer be a necessity to spend or use.
Based on research it is indicated that the number of mobile wallet transactions in the U.S has increased to more than 45 billion dollars. And the global digital wallet market is anticipated to reach approx. 2.1 trillion dollars with a CADR of 15% by the end of 2023.
According to another study, the digital wallet market will grow at a CAGR of 28.2 percent, from USD 1043 billion to 7580.1 billion in 2027. Such tremendous growth shows how digital wallets are revolutionizing the traditional cash culture.
Types of digital wallets
Closed mobile Wallets
This type of wallet is integrated with the e-commerce platform. For example, Amazon pay allows the users to make payments only for the purchase done through the app. Therefore the money available in such a wallet cannot be utilized to pay anywhere else except the particular app.
Semi-Closed mobile Wallets
The semi-closed wallets allow the users to make payments at certain stores that have signed a deal with the mobile wallet development company. Therefore the users can only use it in the designated stores. Thus it is half an open and half a closed type of wallet.
Open mobile Wallets
These are the most commonly used mobile wallets that are available to install from both Play Store and App Store based on their compatibility. These apps are easy to use and provide a seamless experience to their users. The popular apps like Google pay, Paytm, etc which are used commonly fall into this category.
Scope of mobile wallet development
The fintech industry is experiencing an enormous spike in recent years and expects to have steady growth in the upcoming years. People these days are getting used to the digital wallet culture looking at the convenience and security it offers. Let’s understand the reasons behind the wide reach of mobile wallets,
- The evolution of mobile wallets eliminates the fear of cut loot. Therefore people can easily carry unlimited funds securely.
- The transaction time is extensively reduced. People can transfer funds in a blink of an eye.
- It eliminates the need to go to a bank for money transfer, even from a remote location or while traveling, users can transfer money easily.
- With the growing digital economy, it is no wonder if the whole world adopts global currency like Bitcoins. In that case, international fund transfer and business deals will hit big.
- It adds benefits to the government by reducing the expenses to produce and regulate physical currency.
How does a digital wallet development process work?
- Upon installation of the app, users register in the app by entering the required details. Then connecting the mobile wallet with the bank account will enable the users to transact funds.
- Once the registration process is over, users can send unlimited funds instantly. Users can also send money requests to receive funds.
- Apart from transacting funds, users can also utilize the advanced features of the app to recharge their mobile phones, pay utility bills, and do other necessary transactions easily.
- Consistent notifications are sent to the users regarding any activity occurring in the app, and other promotional notifications like promotions, cash backs, discounts, and more.
- With an advanced mobile wallet app solution, users can pay the shop vendors instantly by the scan and pay feature.
How to monetize a digital wallet app?
For any business, generating income is crucial to expand the business. Therefore choosing the right business model is very important. You can add various features to your app that allows you to generate revenue. There are few common yet effective revenue models which are discussed in the following passages for you to choose.
E-commerce integration
Apart from money transfers, thrill your users by providing an option to purchase through the e-commerce platform available in your app. Popular apps like Paytm have created their own Paytm mall available for the users to shop easily. A mobile wallet with E-commerce is like a cherry on the cake.
Commission-based model:
This is one of the commonly followed models to generate money in open wallet apps. Whenever the user makes payments through the app, a part of it goes to the app owner as a commission.
Advertisements:
Utilize the banner space of your app to display the ads of third-party products and services. Whenever the user clicks on the ad displayed in the app, the app owner receives money. Therefore it is an effortless way to generate steady income. There are different types of advertisements that can be displayed in your app for generating more revenue.
To make a long story short,
Hope you have gained complete knowledge about mobile wallet apps and the development process. The mobile wallet apps are going to take up the payment method anytime sooner. Looking at the tremendous growth in the market, many entrepreneurs are getting their hands on mobile wallet app development right now to join the race. So without any further delay, get going with the digital wallet app development and soar high in your business right away.
There are many app development companies in the market that allows you to build a robust mobile wallet app with an increased security level for secure fund transfer as well as to gain trust amongst the users.
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