In this blog, you will get to know,

• Types of eWallets
• About one of the very unique eWallets, Venmo
• App features of Venmo which you have to ask eWallet app development company to add in your app.
• Opportunities and challenges for eWallets
• How much does it cost to develop an eWallet app like Venmo?

Types of eWallets you need to know before going for eWallet app development

 
There are major five types of eWallets. These are,

Open wallet

The open wallet lets users buy goods and services. It also enables the users to withdraw the cash and transfer the fund. Generally, an eWallet which is offered by banks or an eWallet which has exclusively tied up with banks can be considered as an open wallet. M-Pesa is the best example of an open wallet.

Semi-open wallet

Semi-open wallet only lets users transact with merchants who have a contract with the companies. This type of wallet doesn’t act like a bank. Instead, semi-open wallet relies on the banks which processes the user’s request to top up money in eWallet from the bank.

Closed wallet

Only E-commerce sites offer closed wallet to store the money of users in the case of refund.

Semi-closed wallet

Semi-closed wallet allows users to purchase goods and services from the registered merchants. However, a semi-closed wallet doesn’t permit cash withdrawal.

Social wallet

The social wallet has all features like a semi-closed wallet, but it works on the principle of sharing. Users can make friends, share the payments and comment on their friends’ payments. They get all notifications like a social media app and they can see the transaction activity of their friends in the news feed.

Venmo which is the social networking enabled eWallet was founded by Andrew Kortina and Iqram Magdon-Ismail in 2009. In one of his interviews, Andrew stated that they initially wanted to build the payment solution for their friend’s yogurt shop. While building it, they found out how terrible point of sales software was at that time. And then one day, when Magdon-Ismail forgot his wallet during a trip to visit Andrew, they decided to employ learning and inspiration they had got while developing a payment solution for the yogurt shop to build the seamless way of payment. Their initial service enabled users to send money through the SMS, but eventually, with the evolving of advanced FinTech app development techniques, they developed a dedicated mobile app. In 2013, PayPal acquired Braintree which had already acquired Venmo in 2012.

Venmo includes the social networking interaction which was created to split the bills between friends quickly. When a user pays somewhere using Venmo eWallet, the transaction details are shared on the news feed like a social media app. However, Venmo does offer some privacy setting. Users can select any one privacy setting option from the three available options – ‘World Wide’ , ‘friends only’ and ‘personal’.

Because of this exclusive feature, people embraced Venmo, unlike any other mobile app. Following graph clearly depicts that how rapid growth Venmo has witnessed during its initial years.

Moreover, according to the Similar-Web data, Venmo is 2nd ranked most popular finance app in the USA.

App features of Venmo which make it second to none

 
Creators of the Venmo went an extra mile and developed an eWallet app which provides an experience like social media app. This step of the Venmo’s founders can be considered as one of the most tactical steps in the FinTech industry. If you want to be successful with your eWallet app, it should have some rare features like Venmo.

Following are the top features of the Venmo app which you have to ask eWallet app development company to integrate into your eWallet mobile app.

• Users can add money in the eWallet using a debit card, credit card, and bank account.
• A news feed shows the details of all recent transaction of friends.
• Users can comment on their friends’ payments.
• Users can easily split the bill. They can even make groups of friends.
• Users can track all payments in one place.
• Users can request the money from the friend.
• A user profile contains all information of users including their payment history.
• The app encrypts all details before storing it.

Which are the top opportunities and challenges for eWallets?

 
Though, there are a lot of eWallets are available in the market, the probability to be successful with your new eWallet app is still high as a lot of services and markets are still left unexplored. By knowing the opportunities which represent the market scope and by knowing the challenges which you have to overcome, you can uproar the eWallet industry.

► Opportunities

» Increase of smart-phones

It is known to everyone that the number of people who use smart-phones is increasing like never before. It is anticipated that the global smartphone users will reach 2.87 billion in 2020. These many smartphone users are a great sign for you if you want to develop an eWallet app like Venmo. Because now you can acquire more customers while keeping the cost to acquire a customer minimum.

» Rural areas

Almost all entrepreneurs let the market of rural areas fall between cracks. They don’t bring the market of rural areas in the play while filling the business model canvas and so, they end up leaving out a large number of potential users. It seems like they are not still aware of the fact that mobile and internet users in rural areas are also increasing.

Talking about the eWallets, the rural market can be more profitable choice than urban cities as most of the people who are living in remote areas don’t have banks and an eWallet can offer them the efficient and bank-grade payment service.

» Increased public interest

There was a time when people didn’t prefer to pay online. But with the avalanche of online purchase and online activity, eWallet secured its place in people’s smartphones. In 2016, there were 670 million users were using eWallets and by the end of 2022, that number is estimated to reach 1500 million.

However, to derive benefits from all these opportunities, you first need to overcome a few challenges.

 
►Challenges

» Legal Norms

Legality is one of the biggest challenges you need to overcome in order to keep your service running without being clogged. Since, an eWallet deals with money, governments of all countries have imposed different rules. What makes it, even more, worst is that they are constantly changing those rules. So, if your eWallet app is already performing well in the market and all of a sudden, government imposes a new rule, you need to rebuild or upgrade the app according to the new rule.

» Cybercrime

Most banking and financial applications are always on the hackers’ target. By wreaking havoc on IT infrastructure of financial applications, they can satisfy their ‘financial goal’ in the most possible way. In the past, data from popular mobile wallets like Google pay has been stolen. Thus, hire a top eWallet app development company like Coruscate which is able to develop an eWallet app in such a way that it encrypts all data, enables biometric authentication and serves extra security through the firewall.

» App perfection

Currently, all eWallet providing companies are promoting their eWallets on the bases of how fast and feature-packed application they are providing than their competitors. However, developing an error-free eWallet app isn’t as easy as it sounds. Completing API integration with the banks is something which can put you in the financial trouble if it is not well- implemented. Several bugs and performance issues are also riding in most eWallets.
 

How much does it cost to develop an eWallet app like Venmo?

 
Coruscate Solutions is the top FinTech app development company. We are accommodating a highly trained team of designers and developers who can develop any kind of FinTech app, including the eWallet app. We not only develop the next-gen app, but we become the strategic partner of our clients and help them to increase business performance and to solve legal troubles. Additionally, we have completed a successful API integration with Nordic banks which means, we can now afford to develop an eWallet app within 45 to 55 business days and under $10k. To know more about features and to ask for a free demo and consultation, visit our FinTech app development page. We promise you to stay you afloat.

The post A Facebook-like-eWallet is bizarre yet profitable. Know how to develop an eWallet app like Venmo which hogs news feed. appeared first on Coruscate Solutions.

FinTech is the vast industry which includes financial services like lending, payments, international money transfer, personal finance, equity financing, insurance, and consumer banking. Every day, a lot of new FinTech apps are being launched in the market which caters dedicated financial services to the people. But FinTech app development is the tip of the iceberg. Only a few top FinTech app development companies like Coruscate Solutions know the hidden problems and its solutions.

In this blog, we will study the way FinTech is embodying the mobile payment landscape with mobile wallet apps like M-Pesa. We will also analyze how M-Pesa has enriched the payment infrastructure of the few African and Asian countries, what is their business model and what are the features you should ask the mobile wallet app development company to integrate into your next mobile wallet app to make sure it justifies your financial goal.

What is the mobile wallet app?

A mobile wallet or the digital wallet allows you to carry details of the credit cards and debit cards in a secure digital form on the mobile devices. Thanks to its next-gen payment technologies, you can pay anywhere for any kind of services in a very secure way. It avails you to get rid of carrying physical credit and debit cards. Moreover, it does not publish any data of the credit and debit cards to the merchants in order to provide you the ultimate data security.

The popularity of mobile wallet apps.

Mobile wallet apps are replacing the traditional methods of the payment. The blend of secured payment technologies and advanced mobile wallet app development techniques furnishes the supreme user experience. Hence, the number of people who are preferring mobile wallets to pay for their services is increasing by leaps and bounds. In the United Kingdom, 24% of smart-phone users are using mobile wallets regularly. In 2017, 400 million people have used Alipay mobile wallet and 210 million people have used Paypal. With a huge user base, the mobile wallet market is estimated to reach about $14000 billion by 2022.

Why mobile wallet apps are attracting users in million?

Because of the major three reasons, People are adopting mobile wallets more than ever.

It is FinTech, yet easy to use.

Generally, an app which runs on the FinTech technologies is very complex to understand and use. But that is not the scenario with the mobile wallet apps. Mobile wallet app development companies are designing and developing the mobile app in a precise manner that you don’t need to burn the candles at both ends to understand and use the mobile wallet. In order to start paying from the mobile wallet, users just need to link the bank account with the app. Once the bank account is linked with the mobile wallet, users can pay by just scanning the QR code or by just tapping if the mobile app supports NFC payment transfer. We will understand the role of NFC technology in mobile wallet app later in this blog.

It is a safe bet.

Mobile wallet apps are satisfying the most requested need of the users which is a safe and secure transaction. When a user pays for the services, rather than sending the card details to the merchant, it creates a unique ID number and shares only that number with the merchants. Additionally, a user can use biometric capabilities of his mobile phone to make the access of the mobile wallet restricted.

Anytime, anywhere!

As payment made through mobile wallets are safe and secure, more merchants are integrating mobile payment option in their payment methods. Not only small businesses but all major e-commerce sites are letting their customers pay via mobile wallets to do quick checkout.

Which are the few most popular mobile wallet apps?

Except for a few mobile wallet apps which are being used worldwide, all major mobile wallet apps are targeting local markets as different countries have different rules and regulations to follow in order to create an online platform for the money transfer. This is why we always encourage you to study the government policies before going for the mobile wallet app development, or, you can ask us for help. A team of Coruscate Solutions always keeps the eagle-eyes on the changes different governments make in their rules and regulations for building online payment infrastructure.

In the USA, UK, and Australia, mobile wallets like Apple pay, Google pay and Samsung pay are more popular. While in India, Paytm ranks on the top. Alipay and Wechat-pay are the most popular mobile wallets in China. Meanwhile, Asia pay and AImazing are the top mobile wallets in Singapore. If we talk about the African continent, then M-Pesa is among the most popular mobile wallet apps in all major countries of Africa. M-Pesa is not only changing the online payment infrastructure of the African countries but surprising entrepreneurs and economists with its rapid growth. The study of the M-Pesa and it’s outcome will surely fuel your ambition to develop a mobile wallet app. You will jump out of your skin after knowing how people of developing countries have adopted FinTech in the form of the mobile wallet.

Insight into M-Pesa.

In 2007, Vodafone launched an online platform to enable mobile-based money transfer. It lets users to create virtual accounts in their mobile phones and to deposit money in it. It also allows users to pay to other users, including merchants. Unlike other mobile wallets, M-Pesa users don’t have access to link their M-Pesa account with a bank account. However, M-Paisa has started its own banking service which is branch-less. By using this service, the user can deposit and withdraw money from the registered M-Pesa agents.

The rapid growth of the M-Pesa

After its initial launch in 2007, the first time it attracted the attention of the world was in 2010 when it becomes most successful mobile-phoned-based financial service. By 2012, M-Pesa managed to get 17 million users only in Kenya. By 2016, it has spread quickly and acquired 7 million users in Tanzania. Following graph clearly depicts the rapid growth of the M-Pesa and its user base.

As the number of users is increasing, M-Pesa is also increasing the agents. In 2010, there were only 17600 agents, while in 2018, that number reached 206,940.

After dominating the markets of African countries, M-Pesa has extended its business reach to India, Afghanistan, and Romania.

What kind of services M-Pesa is offering?

M-Pesa is providing complete mobile wallet solution by enabling its users to pay for almost any kind of services. Users of the M-Pesa mobile wallet can pay for prepaid recharges, postpaid bill payments, merchant payments, utility payments, remittance, and DTH recharge. It also allows customers to send money to any mobile numbers and bank accounts. Moreover, M-Pesa is working with a few Kenyan banks to provide additional services like interest-bearing accounts, loans, and insurance.

The business model of the M-Pesa

M-Pesa has precisely crafted their business model. They have added their every service into the revenue stream to maximize the profile.

User transaction fees

M-Pesa takes some percentage of the commission on every payment a user makes. This commission varies from 2% to 10% based on for which services the user has paid.

Paybill service

M-Pesa also supports the paybill service which is nothing but the SMS based payment service. The user who is transferring or paying money with this service is also charged 2% to 10% extra.

Cross-network M-Paisa services

Cross-network M-Paisa service is the major source of the M-paisa’s revenue. With the payment capability, users can transfer funds between M-Pesa mobile wallet and other mobile wallets. When users do so, they are charged.

After reading so far, if you are triggered to develop mobile wallet app, it is advisable to know about that one feature which makes your mobile wallet app similar to Google pay and apple pay mobile wallet.

What features you should consider while developing e wallet app like m pesa? or 

Or What is that one feature which stands out your mobile wallet app?

User registration, banking account authorization, fund transfer, payments for the bills, discount coupons are very common features all mobile wallet app development companies can accommodate in your app. But to survive in the market for the longer term, your app should have some unique features which take the user experience to the next level. Coruscate Solutions always thinks outside the box and implements a few game-changing features.

Capability to pay by using NFC technology of the phone is one of the rarest features you can find in mobile wallet apps. With the NFC technology, users can pay by just tapping the mobile to the POS (Point of sale) systems of the merchants. Allowing users to pay with NFC technology means you are giving the highest level of convenience to your users.

However, compatibility is the major issue in NFC enabled mobile wallets. User should able to pay in just one attempt. We at, Coruscate, have achieved a robust payment mechanism for the mobile wallet app which works accurately even on the NFC technologies.

It is the undeniable fact that the current version of the mobile wallet apps are technologically advanced and performing all tasks with the highest ever accuracy. But still, a few hidden problems are also there. These problems are tiny in the scale but hold an aptitude to harm you financially.

Problems associated with the e wallet app development.

If you want to target the global market with your mobile wallet app, real-time currency conversion is the must feature. With the real-time currency conversion, you permit the users to see the currency rate before performing the oversee transaction. Payment gateway and payment processor are responsible for showing the real-time rate of the different currencies. Hence, choosing the right payment gateway and payment processor is always the deciding factor of the mobile wallet app success.

As we have discussed NFC technology can boost the functionality of the app. But if the mobile wallet app development company narrowly missed an approach to achieve the highest compatibility, problems likes duplicate payments, incorrect payments and dangling authorization can rise.

Security is a major concern when it comes to FinTech. A very popular mobile wallet app, Google pay was hacked in 2012. The payment module of the Starbucks app was also hacked in May 2015. When experts examined the reasons, they found out small vulnerability issues in the app. Coruscate Solutions always puts more emphasis on security and develops a secured mobile wallet app by using an SSL certificate. SSL certificate binds a cryptographic key to the all sensitive details of the users and makes it impossible to breach.

What is the cost to develop e wallet app?

Any app which works based on the FinTech technologies demands an exceptional level of the app development knowledge. It also urges regular updates as governments are changing the rules and regulation of the online payment infrastructure quite often. This is why it is worth to mention that the cost structure of the mobile wallet app development is different than any other app development.

Coruscate Solutions has entertained a numerous amount of the queries related to FinTech app development and mobile wallet app development. We work on a few prominent technologies to provide a reliable and scalable app. Our rapid agile app development technique delivers the app without missing any deadlines. We also know the craftsmanship to craft mobile wallet app with paramount features which always keeps you one step ahead in the market. So, feel feel to contact us for a free consultation.

The post Mobile Wallet App is a Major Category of the FinTech. Know How You Can Hammer the FinTech Industry by Developing a Mobile Wallet App Like M-Pesa? appeared first on Coruscate Solutions.