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How to Make a Mobile Wallet App in the Digital Money World

Are you surfing the internet to learn how to create a wallet app for both Android and iOS? Well, here’s the answer to getting this right for both platforms. Read this full article to know everything you need to know to create your e-wallet.

A study by Mordor Intelligence found that the mobile payment market was valued at $ 1449.56 billion in 2020. The study also estimates that the market will reach $ 5399.6 billion by 2026, with a CAGR of 24.5% over the forecast period.

Brick and mortar stores worldwide continue to adopt and integrate digital wallet systems with some of the most popular options. Samsung Pay, Alipay, PayPal and WeChat Pay to accept digital payments. With the epidemic, lifestyles have changed, and the way businesses operate has changed. The trend of digital payments will continue to grow for many years or maybe even a decade.

As more and more people take advantage of instant payment capabilities through mobile devices, many retailers have started enabling contactless payments. It encourages customers to pay through online payments and offer loyalty cards, discounts, and more. It began to focus on offering gift cards.

Expectations of Mobile wallet in 2022

Now that we know that there is a global demand for QR Code Payments process, let’s go straight to how to create a digital wallet that meets the expectations of consumers in 2022:

First, understand the rules of the industry.

Following the FinTech Regulations is not very straightforward, as there are many rules, and Fintech companies have to follow. Mobile wallet compliance varies from country to country, and you need to be 100% up to date with your market needs. I recommend that you read my previously published guide to Fintech Regulations – Fintech Business Compliance – an overview.

In addition to country-specific compliance, you must also adhere to the PCI (Payment Card Industry) security standards that apply to the market you choose.

Which Mobile Wallet Software Development Kit Should You Choose?

Here are some software development kits (SDKs) to help you build your e-wallet app. Don’t forget the SDK with an off-the-shelf platform. E-wallet development is a complete development process, and the SDK will only make your job a little easier. We will talk about the e-wallet mobile application development process by following the SDK options.

MasterCard Mobile Payment SDK

The Mastercard SDK consists of a library of tools that help developers build mobile wallet applications. Additionally, this SDK has a simple application and test simulator to simplify the process of mobile wallet development.

The link to access the Mastercard SDK is here. One thing to note is that the MasterCard SDK only supports solutions related to the MasterCard cloud-based payment specifications. Since MasterCard offers this SDK, it supports transactions for both in-store payments and online mobile payment transactions. You can develop a mobile wallet for both Android and iOS using this SDK.

PayPal Mobile SDK

These SDKs come from PayPal, the pioneer of mobile payments. PayPal’s Braintree Direct SDKs allow developers to create mobile payment wallets for both iOS and Android.

Remember that fintech rules vary from country to country. In some countries, it is advisable to use Braintree, while for some countries, PayPal offers an alternative method – the PayPal Native Checkout SDK. This is the mobile version of PayPal Web Checkout, and you can find the full documentation for this SDK here.

Other Mobile Wallet SDK

Simplify the development with another mobile wallet SDK which are named as,

  • Quickpay Mobile SDK
  • RazorPay Mobile SDK

Where to host your mobile wallet backend?

Before understanding how to develop a mobile wallet application, it is important to know where to host the backend of your mobile wallet application. The most popular Mobile Backend as a Service (MBaaS) solutions available in 2021 are as follows:

  • AWS Mobile
  • Google Firebase
  • Sway
  • Cumulus

What about the cloud?

As discussed earlier, the fintech industry is highly regulated, and the rules vary from country to country. Depending on the country you want to work in, you need to make sure the data stays within the country’s borders.

Therefore, you will not be able to use public cloud services, as they often use servers that live internationally. An alternative option for you is to choose a hybrid cloud solution or a private cloud. You can choose from the following cloud service providers:

  • Google Compute Engine
  • The digital ocean
  • IBM Cloud

How much does it cost to develop a mobile wallet?

You can find pricing plans for cloud service providers and the MBaaS platform on their websites. In addition, the cost of QR code mobile payment services largely depends on the mobile app developers. The complexity of your mobile application (including features) will determine the effort required for the development.

In contrast, mobile wallet apps with high-end features like bill payment integration and online financial services (such as M-Pesa and Alipay) will cost around $ 75,000 to $ 100,000.

What features should you include in your mobile wallet app?

Mobile wallets are a highly competitive industry, and to be the best among your competitors, you’ll need to integrate valuable features into your wallet app. The following are some of the major features for mobile wallet applications in 2021:

1. Intra-wallet payments instantly

Your mobile wallet should immediately transfer between the recipient’s wallet to the recipient’s wallet. If it takes even a minute to transfer money to your wallet, you will lose a lot of users. This is the main feature of every mobile wallet; So, there is no room for error when your wallet holder is trying to pay for goods or services.

2. Payment between bank accounts

The recipient should also have the option of receiving money in their bank account or wallet. This facility should also be offered for intra-bank transfer when the payer and the recipient have accounts in different banks.

3. Bill payment

Mobile wallets in 2021 are not just about making peer-to-peer payments apps They should also help users pay utility bills, loans, rent, mortgages, etc. With the growing popularity of digital currency, mobile wallets are expected to do much more than transfer money.

4. Card management

Mobile Wallet requires users to store user card information (virtual and physical cards) to allow seamless payments. With this, users will not be required to provide card details every time they make a payment. Storing card information in a mobile wallet is always safer than having a physical card, as card information is encrypted.

5. Strong security

When it comes to handling money, security should be the most important priority. Every financial transaction should be encrypted from beginning to end. Fintech developers use several technologies to ensure the security of the mobile wallet.

6. Seamless onboarding

Mobile wallet developers face several challenges when designing the customer onboarding process. About 40% of users in Europe leave Fintech apps while onboarding, requiring wallet developers to create a seamless onboarding process.

The purpose of the mobile wallet is to save the user time and effort; Therefore, your mobile wallet application should allow users to sign up and verify their identity directly from their mobile device.

  • Users download the app and launch it.
  • Users feed personal details id name, mobile number, e-mail id, profile picture etc.
  • The user feeds the received OTP to his mobile number/email.
  • The user sets his password.
  • Users upload a scanned copy of their national ID.
  • The administrator verifies the identity and approves/denies authentication.
  • If the user’s identity is verified, they can link their bank account and a card with the Mobile Wallet app.

7. Bill sharing

This is a very revolutionary feature for mobile wallet apps. Many wallet applications do not have this feature; So, it can be a competitive advantage for your application. Users should have the option to add their colleagues to each bill requesting payment.

Another advantage of the bill splitting feature is that it will give you more customers due to systematic word of mouth marketing. Ease of payment will encourage users to become loyal users of the application.

E-wallet application development process

1. Define your wallet application concept

Given that various mobile wallet apps already exist, you should clearly understand what kind of mobile wallet app you should have. Remember that your app concept should have some significant differences in functionality, effectiveness, fee cost or features. Your feedback on the following questions will help you develop a practical application concept:

What customer problems does your mobile wallet app solve?
What is the unique selling point of your wallet app?
Why would users prefer to use your app over your competitors?
What sets your app apart from the competition?

2. Analyse the market

Once you know what kind of mobile wallet app you want to develop, it’s time for you to identify the current players in the market and their strategies. You can see my recently published article on e-wallet trend – e-wallet 2021 trend, types and challenges of e-wallet.

Quick SWOT analysis is advised. SWOT (Strengths, Weaknesses, Opportunities and Threats) lets you compare your strategies and application concepts with your competitors.

3. Design UI / UX

No matter how appealing it may seem to design the user interface and experience without natural makeup, it’s never a good idea to develop a mobile wallet app. The mock-up will enable you to identify user flow and all potential user travel.

4. Design a technical architecture and develop a wallet app

Mobile wallets should be secure and highly available, and it all depends on the technical architecture. All aspects of your mobile wallet app, including programming language, database structure, technology, features and UI / UX, integrate into the technical architecture. The following picture will help you to understand the technical architecture better.

Final thoughts

When you know how to build a wallet app for Android and iOS, it’s time to decide whether to develop it yourself or hire an experienced fintech developer.


Patel Nasrullah Co-founder Peerbits, one of the leading Top web development companies USA, in 2011. He devotes his time in inspiring young leaders to take the leap of faith. With the experience of 10+ years in Web and App development, he now gives full attention to the enterprise by offering mobility solutions about the strategic planning and execution.

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