Why install an e-wallet on your mobile device if you already have a bank app? The devotees of digital wallets dub convenience, cost-friendliness, and security as the key reasons. Considering this, it becomes clear why the popularity of online wallet payments grows exponentially while pushing fintech startups towards game-changing solutions.

All You Need to Know about Digital Wallets

Who would have thought that the era of digital wallet apps would start with Coca-Cola? However, this is the plain truth. Back in 1997, the company installed vending machines with a special text code at Helsinki Airport. After entering the code on the mobile devices, consumers got fizzy drinks, and the charges appeared on their monthly phone bills.

This revolutionary “Dial-a-Coke” idea ushered in the first digital payments and the emergence of e-wallet providers like PayPal and Alipay.

But what is the current concept of an electronic wallet? Modern e-wallets are smart applications that store credit and debit cards and facilitate online purchases, money transfers, and contactless payments. Such solutions eliminate the need to carry physical cards while providing users with multiple payment options.

Types of e-Wallets

Depending on the functionality, there can be several types of electronic wallets.

Traditional Money Wallet

The solution allows users to store all credit or debit cards in one mobile payment app. With such an e-wallet, you can send and receive money, withdraw funds, make in-store purchases (without a physical wallet), pay bills, and implement secure transactions. It is also possible to keep ID and driving license information, hotel reservations, and concert tickets in certain payment services.

Crypto Wallet

If you seek a hacker-proof application to store and manage stocks, bonds, cryptocurrencies, tokens, ETFs, and other valuables, go for a digital asset wallet. This is a hot custodian wallet (like Binance, Coinbase, or Telegram) integrated with exchanges and tokenization platforms.

Hybrid Wallet

One more popular digital wallet type. It unites the functionality of traditional and crypto wallets and provides users with a full scope of electronic transactions and digital payment options.

Loyalty Wallet

Unlike other digital wallets, loyalty wallets enable users to store gift cards, coupons, membership cards, rewards, and other perks on a mobile phone. This is a convenient and eco-friendly alternative to spam-like newsletters, plastic discount cards, and paper loyalty programs.

Wallet Payments: How Do They Work?

You may relish e-wallet payments online and offline. The online option is available if an internet store or service offers such a payment method. For instance, you can rent an apartment on Booking.com or make an online order at Domino's Pizza with a PayPal account. From a user's perspective, it looks like a cut-and-dried card transaction. First, you link a bank account to a digital wallet and then select it as a payment tool.

Offline e-wallet payments are more widespread, as most supermarkets, cafés, and stores accept them. In this scenario, the following technologies enable the payment process :

• QR codes (a consumer scans a generated QR code that contains goods' prices and related fees with a smartphone camera, confirms the transaction in an e-wallet app, and gets a receipt);
• NFC technology (a customer holds a smartphone with an e-wallet app over a point-of-sale, and the transaction unfolds through short-range radio waves of near-field communication chips integrated into the devices);
• MST technology (magnetic secure transmission functions like black magnetic stripes on a debit card: a point-of-sale reads magnetic signals generated by a smartphone at a 3-inch distance).

Bear in mind that a stable internet connection is essential when leveraging e-wallets, regardless of the payment option chosen.

Standard Features

Why Are They Catching On?

According to the latest research, the global e-wallet market size is forecasted to surpass $51 billion by 2030. Such a huge figure is no coincidence but rather an outcome achieved through the combination of factors.

Convenience

It's much easier to carry a smartphone than a handful of physical cards. Besides, the possibility of leaving a precious device at home shrinks to zero for a modern user (what we cannot say about physical wallets).

User-Friendliness

Internet wallets are robust, intuitive, and eye-catching. Not only do they allow you to keep all the assets in one place but also offer bonuses and cashback for buying goods in partner stores.

Low Transaction Fees

When it comes to international debit/credit card transactions, speed and fees matter. At this point, digital wallets often outrun brick-and-mortar banks by conducting such operations in a cheaper and faster manner.

Boosted Security

It's much safer to keep e-wallet information than card details in your preferred internet stores. Even if attackers get access to this data, they will steal the money from the wallet but won't be able to drain your bank account.

Most Popular Digital Wallets

Mobile wallets are ripe with advantages, and you can unlock them in double click time. Just download the desired app, and you are all set! If you don't know which option better answers your demands, start with an analysis of the most renowned digital wallet companies and their products.

• Apple Pay (an NFC-powered payment app available on iPhone and Apple Watch that employs Device Primary Account Number technology to secure card information);
• Google Pay app (tailored to Android and Apple devices, Google Wallet supports payment cards and PayPal accounts and allows users to buy goods within only a few minutes);
• Samsung Pay (backed by MST technology, this payment solution facilitates mobile purchases and stores membership cards, rewards, and even vaccination records);
• Walmart Pay (the wallet leverages QR technology and is compatible with various devices, but works only in the US);
• Cash App (the service provides users with a virtual debit “Cash Card”, supports fiat and crypto payments, and stores tickets, boarding passes, and loyalty cards).

Mobile Wallet Providers to Partner With

A digital wallet provider is a software development company that helps businesses create and launch fresh payment solutions. Interested in such services and hunting for a trusted tech partner? Take a closer look at the companies below.

#5. Geniusse

A software development company with multiyear experience in the fintech industry. Its tech stack covers 64+ tools (including AI), and it provides diverse e-wallet solutions powered by a vast scope of admin, merchant, and user features.

#4. Apptunix

An Indian-based online wallet provider with vast expertise in various business domains. The team implements next-gen payment solutions and enriches them with data analytics dashboards, chatbots, and voice recognition.

#3. Dev TechnoSys

This digital wallet company has over 150 dedicated specialists that focus on a wide range of development services. The team has a profound understanding of IoT, AI, Blockchain, Cloud, and other innovative technologies.

#2. DashDevs

DashDevs joined the game in 2011 and accumulated deep fintech expertise throughout these years. By employing the Agile methodology and customer-centric approach, the company has implemented over 500 projects with flying colors.

#1. Qulix

Located in Poland, the company offers proficient development teams with a good command of English at a favorable price. Moreover, Qulix can boast a breakthrough platform for hassle-free wallet development. The solution supports tokenization and provides multiple integration and customization options.

Final Tips

Since digital payment solutions contain card information and other sensitive data, it is crucial to follow risk-prevention measures. If you are a wallet user, don't forget to set a screen lock on your device and diversify passwords for each app and account. The task of an e-wallet owner, on the other hand, is to enrich the solution with advanced data protection mechanisms and keep it compliant with the latest security standards. When both parties stick to these recommendations, the application becomes a truly reliable and indispensable payment tool.

Ready to launch a user-friendly digital wallet app that answers all cyber safety criteria? Reach out to us and get the solution of your dreams in several months with our super customizable e-wallet platform.