With evolving technology, the traditional ways of making transactions using cash have also revamped with more companies planning to create digital wallets. Now, mobile phones have eliminated the need of making payment through cheques, or using credit and debit cards, etc. in a digitised way. Post the introduction of digital wallets, people have shifted to using mobile payment applications like Paytm instead of cash to complete day-to-day transactions. Today, Paytm is the most preferred payment app allowing users to make fast and safer payments via UPI and digital wallets.
All About Digital Wallet?
Digital wallet is an online payment tool/ software application acting as an electronic version of a physical wallet. Digital wallet is commonly known as an electronic wallet, e-wallet or mobile wallet, and it helps users make the payment. In fact, digital wallets have eliminated the need for plastic payment cards and physical wallets and customers can use a digital wallet to make purchases at stores, online, or through digital wallet apps.
Key Highlights of Digital Wallet
- Digital wallets let users make fast and easy payments online.
- From booking train/flight tickets, doing mobile recharges, paying gas bills, etc. everything can be done using digital wallets.
- In order to use a digital wallet, users first have to add money from a linked bank account.
- Digital wallets are completely secured and ideal for making all sorts of transactions, letting more businesses create digital wallet for their offerings.
- To complete transactions using a digital wallet, users need to have a smartphone, a Paytm payment app and an internet connection.
If you want to create a digital wallet app, you must know that all wallets are different and by having a detailed understanding of the same, one can understand its diverse goals.
How Does a Digital Wallet Work?
Digital wallets deploy a combination of various technologies including mobile apps, mobile hardware devices, near-field communication (NFC) and security methods aiming to make this platform user-friendly and secure. To use a digital wallet, the user enters their card information into the digital wallet app or site; the information is encrypted and the wallet is made available for use once. In order to make mobile payments, users have to keep their smartphone close to the contactless terminal.
Kinds of Mobile Wallet Apps
There are various kinds of mobile wallet apps including:
- Closed wallet: This wallet is restricted to a few individuals only. One such example of a closed wallet is Amazon Pay. The money from returns and cancellations is stored in the wallet and users can utilise the saved amount only with the issuer of that wallet not with someone else.
- Semi-closed wallet: In a semi-closed wallet, users can make transactions at listed merchants and locations only. The details regarding the payment are stored in a centralised location for safety purposes, but a user might need to share a key or a password with another person before completing the transaction. A semi-closed wallet is easy to use as it can store multiple public addresses while keeping private keys offline.
- Open wallet: Open wallets are useful for managing and tracking payment information online. Using this wallet is quite easy as users can easily download an open wallet to any device or browser with just an internet connection. Moreover, they are compatible across all platforms.
Steps to Create Digital Wallet
Before starting with the process to create digital wallet software know the steps to be followed:
Define Key Features
First of all, do detailed research about the key features you want to include. Some of the features to be taken care of include ability to store multiple types of cryptocurrencies, easy-to-use interface, multi-language support, 24/7 customer support, etc. Define the key features accordingly ensuring that it meets the needs of its target audience.
Choose Platforms
Selecting the right platform is important to make your digital wallet successful. The purpose of creating the wallet must be clear, whether you want to develop your app for iOS, Android, or both, it should be clear. You can also develop a web-based app which can easily be accessed from any device with an internet connection.
Choose the Right Technology and Framework
Another important step to take care of when you create digital wallet is deploying the right technology and framework for developing a wallet app. Some of the most common technologies and frameworks used to develop such applications include React Native, Swift, Java, and Kotlin. Check the scalability of your app, whether it is capable of managing a large number of users and transactions or not. Take the decision accordingly.
Design Your e-Wallet
Designing your e-wallet is another important crucial step in the development phase. Create easy to use and navigate user interface so that even non-tech-savvy customers can use the wallet. Also make individual payments and transfers a fast process to retain your customers.
Develop Your e-Wallet
After the design of your e-wallet, it’s time to start with the development part. Consider a minimum viable product (MVP), a practice to build a product with a minimal feature set, which can be expanded post its release. This way you can reduce time to market and ensure a stronger initial user base. Whether you have an in-house team or outsourcing the development to an expert like Kodehash Technologies, maintain constant communication with the developers.
Test
Testing your e-wallet is imperative to ensure smoothness. Perform both functional and non-functional testing to create a bug-free digital wallet.
Launch and Promote Your e-Wallet
The last step to create digital wallet is to launch and promote the app. In the end, submit it to the relevant app marketplaces like the App Store and Google Play as each of them have different guidelines to be followed. For instance, Google Play has very limited guidelines while Apple is much more rigid, so take care of the same.
Benefits of Digital Wallets
Digital wallets have gained wider popularity within a short period of time. Let’s have a look at some of its benefits:
- Security- Since Digital wallets are password-protected it provides an additional layer of security. To ensure complete security of users’ payment details, biometric authentication is often used in digital wallets.
- No minimum balance requirement- There is no need to maintain a minimum balance in a digital wallet. The users enjoy the freedom to add as much or as little money as per their requirements in a digital wallet.
- Fast transactions- Digital wallets enable fast and hassle-free transactions. Since digital wallet apps are simple and user-friendly, they are the most preferred option for making transactions.
- No Extra Charges- A digital wallet comes with no additional charges and hence are available for use at no cost.
Final Words
Nowadays more customers have started looking for practical fintech solutions for managing their financial activities. Thus, there is a need to develop a new payment method to ensure complete customer satisfaction and safety of funds. Digital wallet is a modern solution offering value to both customers and businesses and makes the payment process faster and easier.
If you also want to create digital wallet and make your digital wallet product successful among more customers, connect with the developers at Kodehash Technologies. We will help you develop your own digital wallet solution to boost your sales and overall revenues.