Significance of eWallet App Development and its Future
This is the era of digitalisation! People are using different advanced measures to enhance their way of living. The advancement in technology has resulted in the development of IoT based devices and various cloud-based platforms. eWallet app development is also one of the developments that paved a new way of making secured digital transactions.
Tremendous growth has been witnessed in the cashless industry over a few years. In 2020, eWallet is a digital alternative to payment methods such as credit/debit cards and virtual currencies. The hassle-free transactions done through mobile devices have made this eWallet development one of the hottest industries of today’s time.
Use of eWallet apps has been profitable for both consumers and businesses. Whether the business is related to grocery shopping or an online ecommerce platform, eWallet transactions have become very common in today’s economy. Because it offers a convenient payment option, the trend of eWallet mobile app development is expected to increase in future. The eWallet app development company knows the right way to frame the roadmap and implement it to get maximum users.
Let’s understand different types of categories of eWallet before going in further details of eWallet app development:
1. Retailer’s eWallet
Retailers have started making their own eWallets in order to make the purchasing and payment method much easier for their customers. They can even store discounts and coupons applicable to different products. This method is good for safe transactions and also increases customer engagement and loyalty.
The Scan & Go app of Walmart is one of the best examples of a digital wallet. Here, the customer has to simply scan the bar code available on the product and the amount is automatically deducted from the account.
2. eWallet for Financial Organisations
Banks and different financial organisations can also develop their own eWallet app to facilitate micro-transactions. This is helpful for the cardholders of that financial organisation.
3. eWallets for Cards
You can understand this type of eWallet app with the example of Google Pay and PayPal. The user has to link their debit card or credit card to these apps. The payment can be made through these apps from the linked debit card or credit card. This is one of the most secure ways of making payment as you don’t have to enter your CVV number or account details while making the payment. The payment is done through the amount you transferred in the eWallet account.
Different Types of Mobile eWallet Apps
- Closed eWallets: In this type of wallet, the purchase can be done for the product of that particular app only. Other online payments cannot be made through closed eWallets.
- Semi-Closed eWallets: It provides more flexibility to the users. The users can make payment for different stores who are in a partnership or in a deal with the eWallet company.
- Open eWallets: These apps can be installed on all the devices and many transactions can be made to different companies through the same platform. These are the most commonly used eWallets.
Different Transactions Done Through Mobile Wallet
- Online Commerce Payment: When the payment is done online and the receipt is generated for the transaction.
- Mobile P2P Money Transfer: When the transaction takes place from a linked user account to another account. Through this method, the immediate transfer of funds takes place without incurring extra efforts.
- Point of Sale Payments: When the user purchases the product directly at the storefront and makes payment through mobile technology.
Popular Ways to Empower POS Mobile Wallet Payments
- QR Code: The encrypted QR code is stored by the business in the cloud. The user just has to scan the code to go ahead with the payment. This method is becoming very common nowadays. Starbucks is a good example of a company that provides QR code to make payment.
- NFC (near field communication): In this method, the payment is done with the help of a contactless chip. When the device of the person who wants to do the payment comes close to the device of the receiver, the transaction can be done.
- Beacon: Smartphones that have Bluetooth 4.0 and are able to communicate with outside BLE-transmitters are known as Beacon. This is a great mode of payment that works offline as well. The POS terminal automatically fetches the card details of the users and processes the payment. It is a hassle-free mode of payment.
- Payment Apps: These are the mobile eWallet apps such as PayPal, Alipay, Venmo and Google Pay that are easy to use and safe. The trend of payment apps has been increasing among local vendors and people have started preferring cashless transactions.
Ensuring Security through Tokenization
The major concern for the eWallet app is to address the security concerns related to online payments. There are some users who think that making payment online is a threat to their personal account information. They are afraid that their device can get lost or even their account can get hacked.
To deal with such concerns, a technique known as tokenization is used by the eWallet apps. In this technique, whenever any request for a transaction is initiated a one-time number or one-time pin (OTP) is generated for the user.
This OTP is sent to the user whose account details are mentioned in the eWallet account. So, no transaction can be completed until the user enters the number. The service provider has control over the token generation and detokenization. There are three ways in tokenization is used:
- The technique of tokenization is used to make the information which is updated by the user while making any payment for online shopping or bills. The merchants are not able to analyze the account or card details because of tokenization. The data of the card is encrypted and then transformed into a token that looks like a combination of different symbols.
- When the card is swiped at the point of sale terminal, tokenization takes place for security reasons.
- Tokenization is also used to keep important information and PAN safe in the device (Apple) or cloud (Android).
Benefits of Tokenization
The following are the benefits of tokenization:
- eWallet apps comply with all the requirements to ensure safe payments. It keeps your data safe.
- If you are any financial organisation or an online store, it is your responsibility to keep the data of customers safe. Tokenization reduces the risk of the data breach.
- Tokenization helps in adding an extra layer of security as people would require a password to get access to your website.
- It is beneficial in building trust among the customers. When people receive a one-time number, they become mentally assured of the safety of their account.
Different Industries using eWallets
There has been a huge growth in businesses of different industries due to advancement in eWallet mobile app development:
- Retail and Ecommerce Industry: Most of the people use online payment options while making transactions at online shopping stores. EWallet apps also provide coupons and offer from various stores easily.
- Banking and Finance Industry: eWallets have made it easy to transfer money from one account to another and do different day-to-day tasks related to banking by sitting at home. These apps even notify about any latest updates related to services.
- Shipping and Logistics Industry: The popular taxi business is already taking advantage of the convenient payment done through eWallet mobile app.
- Food and Restaurant Industry: Many restaurant chains and cafes provide their customers with the option to pay through eWallet apps.
Advanced Features of eWallet Mobile Apps
The mobile eWallet app development company ensures that the following attributes are added while making an eWallet app:
- Promotion Tools: It should be able to track coupons and rewards that are offered by the merchants and retailers. This is essential to enhance the customer shopping experience. The offers and discounts can be promoted on the home page and the customers can avail them from there. Once an eWallet app becomes successful, different brands may also contact the owner to provide discounts and offers running on their brands.
- Online Receipt: The user must get a digital receipt after the transaction takes place. It becomes essential for the customers to get a receipt on payment of bills and it also enhances the authenticity of the merchant. This helps the users to track their expenses and manage them in a better way.
- Regular Notifications: The app owners must receive notifications related to the cash flows done through their account. Notifications can also be about any new changes or announcement done by the app.
- Benefit of Loyalty Program: The eWallet apps may also offer loyalty programs. It can be in the form of collecting points on the purchase or some kind of cashback through scratch cards.
- Customer Support: Users must get some point of assistance if they have any query. Even the chatbot support can be added for the convenience of the users.
- Secured Transactions: The payments made through the eWallet app must be secured and authenticated. It is a major part of eWallet app development.
- Easy Dashboard: The dashboard of the app must be user-friendly and should be able to provide real-time analytics to the admin.
- Billing Options: The eWallet app must offer different billing options for electricity, gas, phone, etc. These options have become extremely important because people want to avoid the situation of standing in queues to pay the bills when they can do it with a single click.
- Reminders: There are certain transactions such as monthly payment of bills that have to be done at a regular interval of time. The eWallet app must remind the person whenever the payment is due. It is beneficial for the companies as it ensures timely payments from the customers.
- Location-Based Services: The eWallet apps also have a feature to recognise your location and provide services according to that. It may include the promotion of offers available in the nearby restaurant or petrol pump.
- Linked Payment Options: Whenever the user wants to make a payment, various options such as credit card, debit card for making the payment should appear in front.
Above mentioned are some of the features that any sophisticated eWallet app must-have. Whether you are running any business looking for some growth or a customer looking for a convenient method to make the payment, you must see that the eWallet app you select has these characteristics.
After looking at the features, it can be said that eWallet app development is the need of the hour and will continue to be prominent in future as well. For business, it is a great idea to develop their own eWallet app with help of an eWallet app development company.
Satyam Chaturvedi is a Digital Marketing Strategist at Arka Softwares, an eWallet app development company. I'm a tech-savvy who loves to explore and implement the power of business applications and software. Being a tech addict, I love to spend time in studying market trends and helping startups and enterprises in achieving their business goals.