Maximizing eWallet App Potential: Cost, Steps, Case Studies

The introduction of eWallet mobile applications has also made payments more effortless, as users can make them using their devices.

With the advent of eCommerce and the need to make payments in a contactless manner, several digital payment companies and eWallet apps for mobile devices have emerged.

What are Mobile Wallets Apps?

The wallet may be filled with cards and cash, but eWallets allow users to store their information on the card and pay by simply scanning the QR code or typing in the recipients number.

Money is deducted directly from the users account and transferred into the payees bank account. The money transfer process has been simplified, and people are now able to make quick transfers of funds.

When we added a payee via our online banking, do you remember the process? It used to take a long time to transfer money to someone.

We had to enter OTP codes multiple times and add countless details about the person. Payments can now be made in a matter of seconds with a few simple clicks.

It is a great thing that eCommerce evolved. This has also paved the way for eWallet applications on mobile devices.

Both go together. If youve been considering it, now is the time to spend your money on developing an eWallet for your business.

The user can still make payments if he or she doesnt have their wallet with them, even if the wallet is at home.

If they have eWallets installed on their phones, nothing can stop them. The majority of outlets, companies, and stores only accept digital payments via these apps instead of cash.

What is the eWallet Mobile App?

The eWallet app for mobile uses various technologies to ensure that digital financial transactions are conducted securely and efficiently.

This is a technical overview of how it typically works:

1. Registration of Users: The user must install and download the mobile eWallet app in an app store, then register their information such as email, name and contact details. Users may be required to enter a password, or biometric authentication is available for increased security.
2. Create Account: After successful registration, the eWallet app creates a user account that is securely stored in the servers of the app. The account can be linked to the mobile device of the user and also to their bank account, credit/debit cards or other funding methods.
3. Security Measures: To protect the users data and transactions, the eWallet application implements various safety measures such as tokenization, encryption and multi-factor verification.
4. Funding A Wallet: The user can fund his eWallet by linking to a bank account, credit/debit cards or debit card. The app securely stores payment details and can use third-party payment gateways for processing transactions.
5. Wallet Balance: The eWallet application keeps a running record of the wallet balance for each user, which is updated in real-time after every transaction.
6. Transaction Types: Peer-to-peer transfers (P2P), payments for bills, merchant payments, and online and offline purchases are just a few of the transactions that the eWallet app allows.
7. Authorization of Transactions: The app allows users to initiate digital transactions by entering the necessary information such as recipient details, amount and security PIN.
8. Transaction Processing: The eWallet App securely processes transactions by checking transaction details and the wallet balance of the user and confirming with the merchant or recipient.
9. Confirmation Of Transaction: Upon processing successfully, the app will send a confirmation email to both the merchant and user containing transaction information such as the transaction ID, date and time and amount.
10. Transaction History: The eWallet application maintains a historical transaction log that allows users to view past transactions. This includes the transaction date, amount, status and time.
11. Error Handling: The app has error handling mechanisms that detect and deal with transaction failures such as inadequate funds, incorrect transaction detail, or connectivity problems and provide appropriate error messages for users.
12. Audits Of Security: The eWallet application may be subject to regular audits and security updates in order to make sure that the security features and protections are effective and up-to-date.

Money Transaction Methods Offered By eWallet Apps

eWallets have also been created as eCommerce is a clear winner and has become a popular way to order essentials and for people to do retail therapy.

These days, there are many ways to make payments online. These methods are discussed in detail below.

#1. Near Field Communication(NFC)

It is possible to pay using a chip that does not require any contact. This is a contactless payment method. You do not need to touch anything else, but you must be near enough so that your device can be read by the pay pad of the recipient.

Payments can be made within three to four inches. The technology may not exist in older smartphones, but it is being integrated into the latest phones to eliminate any future contact between users and sellers.

#2. Mobile Wallet Apps

We have already discussed in great detail the features of these apps, their tech stack, which makes them, and how much they cost.

Google Wallet is one of the best eWallets. Others include Cash App, Due and Samsung Pay.

#3. Paying with Sound Waves

This unique payment method gives contactless payment an extra boost. It allows you to complete a transaction using sound waves from your smartphone.

The feature is compatible with any type of device, including feature phones, smartphones, card swipe machines etc.

#4. Internet Banking

Have you opened a bank account with a major institution in your country? You might also have Internet Banking. It has been around for several years.

In recent years, almost all banks (national and international) have made online banking mandatory. In this type of payment, users are required to add the payee correctly by adding their full details. Second, they receive an OTP to their phone that will allow them to add the recipient.

They then have to wait a few days or weeks for that person to appear on their list of payees.

#5. Direct Carrier Billing

This type of payment, which is mainly used in areas that are not yet developed and where no online payment methods are available, is easy to use.

You can ask the seller to add the amount billed to their monthly phone bill.

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Types Of eWallet Applications

#1. Closed eWallets

Walmart Pay is a mobile wallet that can only be used to pay for products purchased through that app. The eWallet payment system has been integrated into these companies only recently.

These businesses have existed for many years, but they were not the first to offer it. The wallets are only available for one app and cannot be used to pay online.

#2. Semi-Closed e-Wallets

Open eWallets are more powerful than closed ones. The users can use these wallets at stores that have signed an agreement with the app company that provides the eWallet.

Some stores may not offer these wallets. It is therefore called semi-closed electronic wallets.

#3. Open e-Wallets

They are the most popular eWallets because they are available for Android, iOS, and even both, if compatible. They are easy to use, and they make a lot of money.

This category includes apps such as Google Pay, Paytm and others.

The Market of eWallet Apps - Size and Statistic

The technology has helped eWallets have a better future, allowing start-ups to make a profit from their apps. Market growth has been phenomenal, as well as the willingness of consumers to adapt.

Statistics and market growth make this all very clear. Here are some stats about the growth of this market.

1. A study found that the mobile wallet market will increase at a 28.2 per cent CAGR, going from USD 1043 to USD 7580. The growth of these apps can be a sign that religious people are using them.
2. According to research, it is expected that the global eWallet market, by 2023, will grow at a CADR of 15% to $ 2.1 billion.
3. Reports indicate that the amount of money being spent through these wallets would increase by 32 per cent.
4. Recent research shows that mobile wallets are expected to grow to $7.58 trillion in 2027. This is a CAGR of 24,8% between 2023 and 2027.
5. Global mobile wallet transactions by region for and forecasts from 2023-2025

Sectors Driving the Development of eWallet Applications

#1. E-Commerce Industry

Most people have smartphones and use e-commerce applications to find products that are suitable for their homes or for luxury.

Some people are prone to buying goods online. E-wallets are on the rise, thanks to the new apps which have cut the distance between buyers and sellers. We can think that the boost is due to users buying more online.

The need for cash-on-delivery is also eliminated, as most users prefer to pay in advance.

#2. The On-Demand Grocery and Food App

On-demand is a booming industry. People are becoming more cautious due to the global pandemic. They prefer to use these apps for their grocery and food orders rather than going out to shop.

On-demand has grown rapidly as social isolation and disengagement have become the norm. These app ideas are integrated with a variety of online payment methods, but the most popular is eWallet. Most people make payments through the eWallets theyve installed on their mobile devices.

#3. Book a Taxi on Demand

Booking a taxi and paying in cash? It is a scenario that has become dated and not common in many cases. People have changed their priorities and now place their health as a priority.

They have also started to make payments via eWallets in this situation. It helps to maintain trust between the app owner and users. It is also the fastest and easiest way to make a transaction.

#4. Online Bill Pay

The days of having to pay for the electricity you consume in a given month at an electricity board are gone. You can do this with ease and comfort from your home.

The facility made it easier for users to make payments on time. Most eWallets allow you to pay your bills via the app. It includes phone bills, electricity, and gas.

#5. Ticket Bookings

The ticketing industry has also done its best to make eWallets a huge success. These wallets can be used to purchase the plane, train, or bus tickets.

With its assistance, they can book movies and concerts.

Case Studies of Successful Digital eWallet Companies

This niche is a place where many companies flourish due to the innovation of the business models, as well as the location.

These examples can help you to develop your own start-up:

Case Study No. 1: PayPal

PayPal is an online payment service that allows users to receive money directly from another account owner, regardless of their geographical location.

It was founded in March 2000 and became famous when eBay bought it for $1.5 Billion.

Motives Behind PayPal

Max Levchin created PayPal in order to offer consumers a cheap, secure and fast alternative to traditional methods of receiving and sending funds.

The aim is to protect users from the bottlenecks that are common in traditional banks.

PayPals Growth Business Model

Referral marketing was the main reason for its early success. Sign-up bonuses of up to $20, $10 and finally, $5 for new customers and referrers.

Cost to Create a Mobile App Similar To PayPal

Costs for creating electronic wallet apps like PayPal range between $40,000. and $90,00,000. Looking for eWallet App Development Cost? Wed love to hear about your idea for an eWallet app.

We will provide you with customized app development quotes based on your requirements.

Case Study 2: Cash App

Cash App, a mobile payment application that allows users to send and receive money via their app, is peer-to-peer.

Fintech mobile app that offers a variety of banking services.

Motives Behind Cash App

Cash App was originally called Square Cash and is an electronic payment platform that Jack Dorsey co-founded. Dorsey was inspired to invent the Cash App when Jim McKelvey, Dorseys friend at the time, couldnt make a $2,000 purchase because they did not accept credit cards.

Cash App was designed to facilitate quick, easy and convenient transactions. Cash App achieved its goals by providing standard deposits into bank accounts as well as quick deposits onto linked cards.

Cash Apps Business Model

Bitcoin sales have been the most significant contributor to growth. Bitcoin revenue for the company will grow to $10 billion from just $510 million.

Cash App allows free depositing with up to a week of transaction. Cash App requires instant deposits to be paid a transaction fee of 0.5%-1.75%.

This model generated $12.3 billion in revenue for the company.

Cost to Create a Mobile App like Cash App

Costs for creating mobile applications like Cash App range between $30,000 to $55,000. You now know you can achieve success with your idea for an eWallet app.

What is the first step?

Read More: The Complete Guide to Developing Digital Wallet Apps

How to Create a Mobile App for eWallet

Step 1: Define App Features

Decide what features to add to your app. These may include user registration, logins, wallet creations, credit/debit card additions, money transfers, payments, payment history, and more.

Step 2: Select The Platform

Choose the platform you want to use for your app. Is it iOS or Android? Your programming language, frameworks, and tools will be affected by this.

Step 3: Create UI/UX

Design an app with a User Interface (UI), User Experience (UX), and a User Interface that is both visually and user-friendly.

Wireframing and prototyping are required to design the screens of your app, including buttons, icons and navigation.

Step 4: Backend Development

Create the backend server logic that handles user authentication, wallets, transactions, and integration with payment options and mobile banking apps.

Select a technology stack for the backend, such as Node.js or Ruby on Rails.

Step 5: Front-end Development

Use appropriate technology to implement the front-end client code of the app. For native apps, use Swift or Kotlin.

Cross-platform apps can be developed using React Native and Flutter. Included in this are the UI/UX, input validation and communication between the API backend and the front-end.

Step 6: Payment Gateway

Integration with mobile payment gateways such as PayPal, Stripe, or Braintree allows users to manage and add their credit/debit cards, receive money, and make payments.

Step 7: Implement Security

Use strong security measures for protecting user data. These include encryption of sensitive information, authentication methods that are secure, and compliance with industry standards, such as PCI DSS (Payment Card Industry Data Security Standard).

Step 8: Test and Quality Assurance (QA)

Test your app thoroughly to find and correct bugs, errors or issues with usability. Included are functional testing, security testing, and performance testing.

Step 9: The Deployment

Preparing your app to be released in production means optimizing its performance, configuring the server settings and creating a production-ready environment.

Follow the guidelines to deploy your app in the app store of choice, like the Apple App Store and Google Play Store.

Step 10: Updates and Maintenance

Monitor and maintain your application continuously, fixing bugs or adding essential features based on user feedback from users and the market.

Note that the app development service of a mobile application, such as an eWallet, is a complex process. It requires knowledge and expertise in software design concepts, languages, frameworks and tools, along with experience designing user-friendly and secure mobile apps.

To ensure that the digital wallet app development process is successful, its recommended that you consult experienced Mobile App Development Agencies.

Benefits of eWallet App Development

1. Increased Conversion Rate: Dont make your customers wait in line to pay their bills. Allow them to buy your services and products on the move. Paying via a mobile app can speed up the checkout process. It will influence the buying habits of your customers and increase revenue.
2. Reducing Abandoned Carts: The biggest benefit for retailers comes from fewer abandoned shopping carts. eWallets speed up and simplify the purchasing process. This increases the percentage of customers who finish their purchase.
3. Low Transaction Fee: Mobile commerce platforms charge much less for transactions than credit card companies. The merchant can also issue their own payment cards. The card can be used as a gift, allowing the bank to stay out of the transaction while still reducing transaction fees.
4. Simple Refunds: Cancellations and returns of orders are a part of the business. With a digital system for payments, they can be turned into a customer-friendly customer experience. This allows for quick refunds. Your customers will also have more money in their apps to spend. Businesses can retarget their customers and have them make more purchases with just a couple of clicks.
5. Revenue Increase: Companies can send personalized offers and discount codes with the goal of keeping in touch with customers to keep them returning. It is possible to do this periodically in order to maximize sales even over the long term.
6. Increased Customer Base: Mobile payment apps allow businesses to quickly reach potential customers. Contactless payment systems with sophisticated features and a well-designed interface enhance credibility, allowing business owners to view them as trustworthy and reliable. The majority of people prefer to use a wallet that is touchless. With robust security features, they will switch to you and leave your competitors in the dust.

Opportunities For Monetization Provided By eWallet Apps

#1. Ecommerce Support

Users can start their businesses with these wallets and sell their products through apps. You can allow businesses to sign a contract and start selling their products through your platform.

Profits made by these companies are shared with you. You can attract new clients and become a platform that has a large user base, allowing more brands to notice you. Clients may contact you to ask if they can integrate your payment portal with their applications.

#2. Commission on Billing

Apps that a user uses get a certain percentage of each transaction. This is one of the commonest ways to monetize, and its most prevalent in open eWallets.

#3. Advertisement

We all know that apps are a success because of advertising. Third-party brands can rent space in your app, and you will earn money.

Advertising fees are determined by the duration of the ad and where its placed.

Advanced Features of eWallet Apps

#1. Push Notification

The app owner can offer users the option to receive notifications about all transactions. The users feel more connected to their accounts and money when they can see all the details of the account.

#2. Social Login & Sign-Up

The user can sign up for the app using their saved credentials from any social media application. It saves the user time by not having to enter all of his information again.

Each user must have their own login information to perform transactions and to keep track of all past and present transactions.

#3. QR Code Readers

Its not new that weve been using eWallets. Why are these payments so easy to make? By scanning the QR codes of sellers with their phones camera, QR code readers allow users to pay without contact.

They can now make payments directly into the recipients account.

#4. Improved Management Of Personal Expenses

The monthly totals will show you how much money was spent in the past month on products and services. You can access your transactions in the history tab and see how much youve spent.

It helps users make decisions about their expenditures.

#5. Loyalty Programs

All apps value customer loyalty and offer loyalty rewards to make the user experience better. The loyalty program can take any form.

It could be a loyalty point system that users collect and spend in the future. Or it could allow them to earn money by scratching cards or earning loyalty points. These apps can retain users by creating a feeling of belonging.

What To Consider While Developing An eWallet App

#1. Regulatory Compliance

Each app for an eWallet should adhere to the guidelines laid out by regulations. It should therefore be constructed on a framework that complies with these rules.

It helps to avoid any future risks and conduct fair and transparent transactions.

#2. Users Data Protection

Apps should not leak any data collected by users. The apps performance can be affected by a single data leak.

#3. Fraud Risk

App owners must be ready to deal with any potential fraud risks. It is likely that fraud will occur since the app deals with money transactions.

App developers must ensure that the app is risk-free for future users. Money laundering is often associated with anonymous accounts that are hard to trace. Since technology enthusiasts are accountable to their active users, its important to prevent this from happening.

Team Structure Required For Developing An E-Wallet Mobile App

1. Project Manager: Is responsible for the overall management and coordination of projects, as well as communication between internal team members. Assures the delivery of projects on schedule and budget.
2. UX/UI Designer: Designs the interface of an app to be visually attractive, user-friendly, and meet the requirements of its target audience.
3. Mobile Application Developer: Creates mobile apps for various platforms (iOS, Android etc.). Using appropriate programming frameworks and languages. App performance and security, as well as app functionality.
4. Backend Developer: Develops backend infrastructure, such as server-side logic and database integration. Assures the security of data and handles server-side transactions.
5. Front-end Developer: Develops front-end elements of the app, including forms, screens and user interaction. Work closely with UX/UI designers to create the visual elements of the app.
6. Quality Assurance Engineer: Tests the app to find bugs and functionality issues. Assures the application meets all requirements and that it is free of errors before its release.
7. Security Expert: Ensures security for the eWallet application ideas, including encryption of data, authentication and authorization. Installs security measures in order to prevent unauthorized access and protect the users information.
8. Payment Gateway Integrator: Integrates eWallet with third-party APIs, payment gateways, and other services to ensure seamless and secure transactions.
9. Database Administrator: Maintains a database that contains user data, online transactions history and other pertinent information. Assures integrity of data, backup, and recovery.
10. Marketing Specialist: Creates plans and strategies for the promotion of an app, user acquisition and retention. App store optimization, Social Media Marketing, and promotional activities are managed.
11. Business Analyst: Performs research to identify user needs and competitors. This information is used for the development of app functionality and additional features.
12. Legal Expert: Ensures that relevant laws and regulations are adhered to, including data protection policies, financial services restrictions, and privacy policies. Legal guidance and assistance are provided throughout the entire development process.

What Is The Cost Of Developing An eWallet App?

A basic mobile wallet can be developed for around $25,000 - $50,000. However, a complex app with advanced features may cost $90,000 - $150,000.

#1. Cost Of Building eWallet App For Android

Basic apps with limited features can cost between $20,000 and $45,000, while the more advanced ones could range around $80,000 to $150,000.

#2. Cost Of Building eWallet App For iOS

Basic apps with simple features cost between $ 25,001 and $ 55,001. Advanced apps can range from around $ 100,000 up to $150,000.

The pricing for the applications has been mentioned above. It may differ depending on factors such as:

1. Location
2. App developers are usually a team of people or agencies that have been appointed.
3. Design complexity
4. The app must include a certain number of intuitive features

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Conclusion

Do you dream of developing a mobile wallet application? You should contact a mobile app development company and work as quickly as possible.

Contact experienced mobile app developers and sat down to think about all the features you would like to have in your application. The best app development team will help you create an outstanding application.

References

1. 🔗 Google scholar
2. 🔗 Wikipedia
3. 🔗 NyTimes