Paying something in the lieu of the goods exists, since the dawn of humanity. Just the mode of payment has changed from barter to physical money to the online transactions.

Now, as society is going cashless, the virtual wallets have become the norm for the new generation customers. The astronomical rise in mobile usage is gearing up the mobile payment shift. The people are using the digital wallet solution in everything, be it paying bills, shopping, eating in restaurants, and more.

Certainly, you will nod your head in saying YES.

In the last decade, mobile wallet app has not just remained the hottest trend, instead became a fastest-growing product that’s deeply ingrained in the customer’s financial lifestyle. Even, the market predictions are saying, “The revenue of the global mobile payment market is expected to grow up to more than 1 trillion by 2019.”

It’s a sign, mobile wallet is the future of the payment industry that will grow by leaps and bounds. Let’s discuss in detail:

What is the mobile wallet?

The financial instrument is essentially a mobile application that allows users to link and store various types of cards and currencies which can be used to conduct transactions anytime, anywhere. Additionally, some apps also facilitate storing and using loyalty cards, coupons, and membership cards as advanced functionalities.

Easy-to-use, comfort, swiftness, portability, limitless capacity, and unmatched security are the reasons that various industry verticals such as retail, FMCG, healthcare, logistics, and hotels are embracing the payment technology. There is no one-size-fits-all solution with a specific set of features because every industry has a specific need for online transactions.

The set of features that mobile wallet must have:

User registration, bank account authorization, money transfer, paying utility bills, balance checking, and view and utilize coupons or discount offers are some of the basic features that mobile wallets essentially have.

In the crowded market, to make the mobile wallet create a huge buzz, catch more eyeballs, and keep the users engaged, it’s necessary to include unique features that differentiate the wallet. The accompanying features can be loyalty card, gift-vouchers, notifications, membership discount, reward offers, special privileges, digital receipt upon the successful transaction, geo-tags integration, and others.

The list can be extended with some new features or trimmed with the removal of the aforementioned features to develop a mobile wallet that serves the purpose. Remember, security stays at the heart of mobile wallets which should not be overlooked. There are a couple of ways to make the wallet secure and safe from end-to-end:

• Point-to-point encryption

  The most commonly used security tool is popular while conducting transactions and communication because it encrypts the data from end-to-end right from the point the phone is swiped at the terminal to the funds in transit and final authorization.

• Tokenization

  Under this technology, the whole credit card detail is provided to the seller during payment is in the form of the encrypted token (Randomized combination of symbols) that can't be hacked.

• Authentication

  Password creation is an age-old method to protect transactions, but the users can be prompted to create a strong password to make the wallet secure. Besides, the biometric authentication such as facial recognition, fingerprint scanning, and eye retina adds an extra net of safety where biometric data is required to authorize the transactions.

Different types of mobile wallet:

• SMS-based payment

  This wallet store and use the user's banking and credit card information to make the payment where SMS containing code or password is sent to the user's phone to confirm the payment. It works great for the retailers as it won't let the users leave the website or app unless the payment is made.

• Mobile web payment

  There are different types of online wallets such as PayPal, Amazon Payments and Google Wallet that provide the mobile option to the users to validate the payment through two layers of authentication- PIN and OTP. The credit card payment flow is also a part of web payment that removes the hassle of entering the card detail again and again.

• Mobile communication service provider

  This mobile billing option is quite popular during checkout at Ecommerce store where the user's mobile account is used to make the payment. The direct mobile billing method is proven to be the most secure, fast, convenient, and easier.

• QR code payment

  This form of payment is famous at brick-and-mortar POS where a simple process of QR code scanning at POS terminal by the mobile wallet camera enables payment from the linked bank account. The transaction can be completed after the password is provided by the users. The reliable, fast, and secure payment cut down the long queues.

• NFC

  The QR code can be malicious that can put Trojan on the user's phone and collect crucial info, but NFC is more secure. In P2P mode, the two NFC devices required to connect to exchange data.

  The mobile phones come with NFC chip can be read by the NFC chip on retailer's machine at the distance of 10 CM in less than one-tenth of second and with simple PIN authentication, the payment can be done through the pre-paid account or charged directly from the bank account.

Wanted to develop a mobile wallet app?

You have got a big picture of the mobile wallet and what the future holds for it. Perhaps, it’s time to move into action. You need the assistance of the maestros that can help you choose the technology stack, map out vital features, and build an app from scratch, which the target audience love to use.

Get partnered with the best mobile app development company that can help you from wallet app idea brainstorming and conceptualization to the development and its marketing.