Features and Types of Digital Wallets

The advancement in technology has made things easier for the mobile users, who do not only look at videos or click pictures through their phones, but install all those apps that make their work easier.

While most of us are quarantined or sitting inside our houses watching TV and spending time with our families, the shopper inside us definitely wants to buy new things. The E-commerce industry has been taken by storm and all of us are enjoying shopping from the comfort of our homes. How does it feel when a courier guy comes at your doorstep with a parcel for you in his hands? It definitely gives one the adrenaline rush.

So, in the cashless economy how is it possible for them to make the payments? Well, one option that has always been there is through internet banking and the other one being debit and credit cards. And the third and easiest way is with the help of mobile E-wallets. This allows the users to make payments online easily by linking their mobile wallets to their E-commerce app accounts.

Introduction

The simple reason we all need an e-wallet is that it lets you make payments and buy things online. These days it also helps you avail any services without having to put your hands inside your pockets to fetch your wallet. Giving a boost to the cashless economy, these wallets have been gaining recognition and growing at a fast pace since 2017.

There have been a number of digital wallets that have come into play and gained immense popularity in no time. If you are also planning to launch a ewallet app, this is the best time to do it and become a part of the digital race. Take a look at the statistics of the growth of e-wallets.

Source: Statista

Digital wallets allow people to make and receive payments without any physical contact. Even if two people are miles apart, they can still do the transactions. Businesses can also do their transactions via online wallets.

Benefits of using mobile wallets

1- Simple process: With the help of e-wallets one can make payments easily and quickly to another person’s account by just tapping on the screens of their phones. One can also make payments via these app at online stores as well. In the case of a card payment, one has to memorize the CVV code and other details of their cards, which is not required in the case of mobile wallets.
2- Unlimited use: The users are required to complete the registration process to link their bank accounts with the app and start using them. This association can be for any period of time, unless the user decides to stop using it.
3- Extended functionality: These mobile wallets are secured with encrypted protection making it secure. Several users have the ability to accept and pay money in different currencies and lastly, one can fund their e-wallets and withdraw the amount at any time. They don’t have to seek the permission of anyone before depositing and withdrawing their money.
4- Best for work relation transactions: For people who work as freelancers and deal with their clients online, it is the best way for them to receive money.
5- Transaction speed: You can’s questions the transaction speed in the case of digital wallets as it is seamless and happens in the blink of an eye.

Types of mobile wallet apps

There are different kinds of transactions you can do through the digital wallets. This is why e-wallets are mainly divided into three categories.

1- Closed e-Wallets: These ones are pretty simple to make as it will help one make payments only for a simple application or a website. It is for one particular brand name that doesn’t allow you to make payments outside, like in the case of Walmart Pay. This is basically for those companies that have been in business for a long time, but the integration of e-wallets came in some time later. These support only a specific application.

2- Semi-Closed e-Wallets: Offering a wider scope of making payments, this type is different than the one we discussed earlier. Allowing the users to make payments at stores that have an association with the app, this type can be used for online payments as well as payments at stores or restaurants. However, not all stores and shops might be able to receive money through this medium, hence the name semi-closed e-wallets.

3- Open e-Wallets: These ones are the most used e-wallets as they allow the users to make payments online and at stores at any time. In this type of mobile wallet the users can easily do monetary transactions by sending money through the platform directly to the accounts of other users. The service provider allows them to make any transactions from any place in the world, provided both the sender and the receiver have their accounts on the same app.

Top 10 Digital Wallets

We are constantly heading towards the future of technology and inching closer towards a cashless economy. The biggest support that a cashless economy is deriving from are the e-wallets that have become like a lifeline of almost all monetary transactions. So, which digital wallets have been doing exceptionally well at this time? During the Covid-19 times, even the start ups have been flourishing, leave alone the ones that were already in the ball game. Take a look at the top 10 digital wallets of 2020:

1- Google Pay:

The platform was established in 2015 and gained immense popularity in 2019 when people realized how the app made life easy for them and helped them make transfers without the hassle of carrying their wallets and cash. It asks the users to follow the simple procedure of funds transfer and links their accounts to their bank accounts. This is why the transfers can be directly made from bank to bank. The app is compatible with both iOS and Android. Take a look at some of the benefits of the app:

-It offers quick checkout facility even on the web.
-Strongly encrypted with layers of security.
-The information is easily manageable.
-Lures users by offering them rewards and cashbacks.
-Compete transaction history on readily available.
-There are several ways of making the transactions.
-The API integration is easy and quick to set up.
-All utility bills can be paid via the app.
-Integrated with audio based QR system for easy payments.
-Free of charges, therefore the users do not have to pay a single penny to install and use the app.

2- PayPal:

With a presence in almost 200 countries the money transferring platform has been in existence since 1998. It allowed international transactions when there was no other way of sending money to other countries. It is one of the most secure platforms to make transactions which is even easier as compared to several other e-wallets. The app supports 25 currencies and is available on both iOS and Android phones. Take a look at the advantages of the app:

-The seller does not get the information of the payer even after the payment is done, giving a sense of security to the buyers.
-The buyers get a protection of 180 days which allows them to get a complete refund within this span.
-Users don’t need multiple accounts for purchasing from local and global sites. One account per person is enough.
-The seller does not get the financial information.
-The app helps in preventing fraud and protect the information of the sellers.
-Conflicts are easily solved.
-The app has a conversation rate of over 82 per cent.
-Sellers can send out payment requests via email.
-It offers free return shipping facility to the users.
-The transactions made through the app can be tracked easily.
-The payments made through this medium are fast.

3-Facebook Pay:

Well, if you think that Facebook is only a social networking platform, then you might want to reconsider your thoughts. It is much more than that. There are several benefits that you can draw through Messenger, WhatsApp and Instagram pay. Take a look:

-It helps in the prevention of any anti-fraud activity as it detects one.
-It is encrypted with data security and doesn’t share any financial information of the users with the merchants.
-It does not charge the users any money when they make transactions through Whatsapp and Facebook.
-Support is provided to the users in the form of live chat or email.
-The payment history is accessible in all the apps that fall under Facebook Pay.
-It has a verification process in which the users have to either allow facial recognition or put in a pattern or pin to proceed with a payment.

4- Amazon Pay:

One of the fasted methods of payment, which is accepted almost all across the world, Amazon pay offers a robust and most secure way of making payments. It is used in various countries as it makes transactions easy and flexible. Take a look at some of its advantages:

-Users have to create a single account on Amazon, which can be used in all transactions. One does not have to make multiple accounts for different apps.
-It is available on web and mobile devices as well.
-The app has been integrated with Alexa, which allows the users to give command to Alexa during the checkouts.
-It is properly encrypted, therefore, provides security to the users.
-The app has also led to several conversions on Amazon.
-One of the most prominent advantage of the app is that it allows the buyers to split the payments.

5-Venmo:

Out on a dinner with friends and decided to pool in money for the treat? Well, the Venmo app has made it possible for your social circle to split the bill into half or in any number of people. One can also make payments via the Venmo balance or the debit/credit cards that have been stored in the app. A user just has to put in their email address to make any transaction. Owned by PayPal, it can be installed and use on Android and iOS. A look at some of its benefits:

-A social circle can split the bills and pay equally with the help of this app. This reduces their time to calculate the bill.
-It can be installed and synced with your Facebook accounts or contacts.
-Users can start purchasing online products and make transactions to and from the approved merchants.
-The app also allows the users to make transfer directly to the bank accounts of the users.
-Venmo charges 3 per cent feed for credit cards.
-The information of users is protected as the app is encrypted.
-The users can experience speedy checkout service.
-One can receive money and buy online products by paying through this app, and all these transactions are free of cost.

6- Zelle:

This is one of the most used digital wallets in the U.S. If you are looking for an app that allows you to easily transfer money to the bank accounts of your friends or family, then you must definitely consider Zelle as it is one of the fasted mediums available. After adding the payee’s account information by just entering their email address, you can start the transaction and make the payment. Supported by both iOS and Android, following are the benefits of Zelle:

-It enhances the user experience increasing the chances of retaining customer engagement.
-All P2P transactions can be made via the application, that too in real-time.
-There is no processing fee on the transactions, no extra fee is levied on the users.

7- WeChat Pay:

Another one of the social media integrated payment app, this one is most popular in China and has over one million users. Apart from allowing users to make online transactions through the digital wallet, it also enables them to purchase e-coupons at reduced costs. Listed below are some advantages of using WeChat Pay:

– Like other apps, this one does not necessarily need the users to have a bank account. The money can directly be transferred to the app.
– It is encrypted, therefore there is no doubt on the security it offers to the users.
– Quick and easy way of making transactions.
– It is quite simple to navigate from the app, yet complete payments once you are back on the same page.
– The payment providers are licensed.

8- Apple Pay:

Very simple way of making purchases on Apple store along with other payments with the help of Siri. This one is only integrated in Apple phones but is considered to be one of the leading digital wallet platforms across countries. You can easily make transactions by sending messages of by giving a command to Siri. It is also one of the most secure methods of conducting any transactions. A look at some of its benefits:

– It is a competitive app; therefore, it provides touch competition to other digital platforms.
– The information entered in the app is secured and not shared with anyone else.
– Like most other platforms, it does not let the users save their card information.
– If the users try to make a transaction with their credit or debit cards, their information will immediately be removed after the transaction is complete.
– The app allows the users to save their important documents on the app.

9- AliPay:

Another one of the leading digital wallets that has been doing the rounds this year, AliPay has more users than any other mobile wallets. It completely protects the privacy of its users and offers complete reimbursement in case of any fraudulent activity. This is why users trust the app with closed eyes. Some of the benefits of AliPay are listed below:

-Complete reimbursement for fraudulent transactions.
-Advanced level of encryption for securing the users privacy.
-It protects the accounts of the users.
-The app has a team that looks into the claims of users.

10- Samsung Pay:

Last, but one of the most popular digital wallets that will reach almost 200 million users by the end of this year, Samsung Pay offers its users three levels of security. Making transactions easy, it is used in most countries. Following are some of its benefits:

– It offers a plethora of financial services.
– You have multiple options available for making payments. These include the likes of code scanning, show code and send money option.
– Offers rewards and vouchers to users after each transaction.
– Helps the users check their credit score.

Features in a digital wallet app

A digital wallet app will do no good unless it is integrated with some of the best features offering an enhanced experience to the users. Take a look at the basic features that should be integrated in the app:

1- Social login and signup: Each user should have his separate accounts so that he can easily login at any time and all his details can be stored in one place. He should have his personal credentials and should be able to easily sign up. For a smoother sign up procedure, the app should be integrated with social media sign up so that the users details can be picked from there, rather than having them enter all their details again. This helps them save a lot of time. Having a separate account lets the users look at the history of all their transactions at one place.
2- Push Notifications: This is another important feature that does not only allows the users to be informed of any new offers run by the app but also gives them a heads up on all the transactions made by them via the app. This helps them in getting to know each transaction that has been made through their account in the present or the past. A notification pops up each time a transaction is made.
3- QR code: What can be better than scanning a QR code and being redirected to the account of the payee? It makes it easy for the person who has to make a transfer as they don’t have to enter any details manually, but just scan the code and send the money. Isn’t it amazing?
4- Managing personal expenses: Did you keep a tab on the amount of money spent by you in a month? Well now you can do it with the help of these wallets. You can look up in history and calculate the money you’ve spent in a month. This helps you manage your personal expenses better.
5- User Loyalty Programs: An app owner always seeks the loyalty of the users, therefore, the app owners should offer them programs in form of offers and loyalty points to build their interest in the app. This works well in case you want your users to be associated with the app for a long time.
6- Integrated CRM System: One should be able to assist their customers with the help of the Customer Relationship Management. This service should be available at all times so that they can get assistance whenever they get stuck with the payment.
7- Real Time Analytics: This one is for the admin who get an insight into the transactions made via their app. This helps them in knowing how well their app is performing at a certain point of time.
8- eCommerce Integration: Your app can be integrated with any of the shopping sites and apps, which enable the users to make payments directly after making the purchase.
9- Online bills and recharges: Another important feature that allows the users to make payments and pay off the bills online. One can pay off their electricity, phone, gas and water bills through any of these apps. All important information of the bills and other information associated with it can be directly saved in the app so that the payment can be easily made next time without entering all required details again.

Advanced Features of Digital Ewallet

1- Geo location: This feature helps in raising the popularity of any application. Although, an app owner might have to pay some extra amount to get this feature added, but this sure helps the users to locate the nearby users and just tap and pay.
2- Calendar: User do not have to memorize the date of a payment, rather, just save a date for the payment on the calendar integrated in the app. In return the app will notify them on the date regarding the payment, and the users can directly make the transfer.
3- Synchronized data: This feature helps in protecting the details of the users by synchronizing the app with their social media accounts and bank details. With the help of this, the users can directly enter their phone numbers and their data will automatically be synced with their app accounts. They will not have to fill in all their bank and personal details again on the app.
4- In app camera: This feature makes it easy for the users to scan the QR code and directly make the payment to someone. The users however, have to validate the transaction before making the transfer.
5- Cloud operations: All transactions history can be saved in the accounts of the users with the help of cloud. It also helps the users do quick transactions.
6- Wearable integration: It is one of the most important features, that allows the users to make all transactions through their wearable gadgets. They can control all their transactions now from their wrists, without having to pull out their phones from their pockets or bags.
7- Digital receipt: This one is amazing as the feature allows the app owners send out receipts to the users on their devices. With this, the shelf life of the receipts is endless and one can check it whenever needed.

Required tech stack for developing digital wallet

1- For Voice, SMS and Phone Verification: Nexmo
2- For Payment: PayPal, Braintree, Stripe and PayUMoney
3- For database: MongoDB, HBase, MongoDB and Cassandra
4- For frontend: JavaScript, Angular, HTML5, CSS
5- For cloud environment: Salesforce, Google Cloud, AWS and Azure
6- For email management: Mandrill
7- For QR code scanning: ZBar Code reader
8- For push notifications: Push.IO, Twilio, Amazon SNS, Urban Airship
9- For data management: Datastax
10- For real time analytics: Hadoop, Big Data, Apache and Spark

Conclusion

Digital wallets reduce the need of any intermediaries, making financial transactions easy and convenient. One does not have to go to banks, stand in queues and fill forms to make transactions. One can simply integrate their accounts to one of these e-wallet app and start making payments directly to the bank accounts of the sellers. It has made online shopping, bill payments and any other sort of payments very easy and convenient. If you also want to join the bandwagon of these apps, this is the right time for you to do it. Help the economy be contactless and cashless. Choose the right app development team and get them on board quickly to take all your transactions online.

Credit: Rahul Mathur