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By Abhyudaya Tripathi
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04 Jul, 2019
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~ 10 minutes to read
04 Jul, 2019
~ 10 minutes to read
“Mobile devices, high-speed data communication, and online commerce are creating expectations that are convenient secure. Real-time payment and banking capabilities should be available whenever and wherever needed.”
– Jerome Powell
The recent trend shows how popular mobile devices are. The use of these devices broke all the boundaries and set new standards. With business getting online more and more people too are going online. As a result, money is also finding its way Online.
While the number of countries promoting an online payment mode is growing daily, it is appealing to the masses, too.
According to ECommerce News Europe, an online business magazine, the number of countries that prefer online payment is increasing.
The online business magazine published a report showing the online payment method of the top three European countries.
Such is the craze for online and mobile-based ballet payment systems. And the most exciting part is that this number is increasing astonishingly.
Sensing the appropriate time to develop a mobile ballet application, lots of businesses are getting attracted to this new, exciting area of business.
If you are one of them, be with this blog. You will find ”Gold Nuggets” in this blog, which describes different mobile app and wallet development aspects.
Before we move further, ‘let’s look the fantastic journey of mobile wallets to date how this system has evolved itself from the lenses of history.
This incredible journey of mobile wallets has left its mark. Mobile wallets app means the ”digital wallet on your mobile phone”. This digital wallet is safe, secure, fast, handy, and easy to use.
If you are the one who is planning to have your mobile-based Wallet application, you need to plan the app to give its blueprint to Mobile App Development Company. The Mobile Wallet application can be of different forms.
Separate wallet applications are meant for different uses. So, ‘let’s discuss step-to-step methodologies for developing a mobile wallet.
Based on the method of payment used by mobile wallets, there are four categories of mobile wallet apps.
(a) Wallets Dependent Upon Communication Provider: The end users use a Communication provider for any transaction.
(b) Wallets That Use Sms for Approving Payments: Transactions are approved using SMS from a bank account, debit card, or credit card.
(c) Wallets That Use Mobile Web Payments: Payment can be received through the Mobile App.
(d) Wallets That Use Near Field Communication (NFC): This type of mobile wallet is used for fast payment. A special chip is used in mobile devices to process the payment.
Based on the uses and number of users, technologies are different for different type of Mobile Wallets. Successful Business Mobile App has the right technology. So, you should follow that trend carefully.
This technology is mostly used for a small base of users. The wallets that use Direct Career Billing depend on the communication provider for their transaction.
Also, this payment method is most traditional and has been used for years. The technology lets users make a purchase with the help of their phones without the necessity of entering the date of a credit or debit card.
For example, small-scale businesses like laundry services can directly deduct the payment from the ‘users’ mobile balance. This form of mobile wallet payment lets the users, as well as the seller to complete the transaction most conveniently.
Another technology that is very successful in Mobile Wallet arena is QR and BAR Code. This method lets the user scan the QR code for making the payment.
The mobile devices that support the QR and BAR Code come with inbuilt camera scanner which lets the device identify the right point of sale.
Many shopping malls, as well as small-scale businesses, use this type of Mobile wallet because it is easy to use process.
NFC means Near Field Communication. Any device compatible with this technology can communicate with other devices which can support NFC.
This technology is contactless remote technology which can communicate with other devices within a distance of 10 cm and provide users a secure and contactless payment.
The practical method of NFC and Bluetooth is the same, but the big difference is speed. NFC allows connecting with other devices within one-tenth of a second.
Talking in terms of disadvantages of NFC, it is expensive to develop and maintain. For larger companies such as Starbucks, they have designed their own NFC. But for smaller and startups, it is sometimes hard to support such expensive technology.
Apart from expensiveness, security concerns have also been reported in NFC. If reports to be believed, NFC is better and safer than usual card payments, but it is not 100% secure. Mobile phone hacking makes the system vulnerable to data theft.
Cloud-based mobile wallets are emerging as new trends. This technology gives users a ubiquitous, convenient, and easy to use process. A giant like PayPal is a perfect example of this type of mobile payment wallet application.
End users are needed to enter their mobile number and pin code to complete the transaction at any POS.
The mobile wallet applications which support Bluetooth and iBeacon technologies also follow NFC methodologies in transactions. iBeacon allows data exchange with minimal power consumption.
Contrary to ‘NFC’s 10 cm contactless transaction, the range of iBeacon is 70 meters. The most significant advantage of this system is the users only need to activate Bluetooth to receive signals.
iBeacon is compatible with both operating systems, i.e., Android as well as iOS. Also, this technology comes in handy in advertising campaigns. It is possible to send personalized ads to users whenever they come within range.
The end users find it very interesting when they get personalized offers from a nearby shopping mall, movie theatre, etc.
The basic framework of the mobile wallet application is the whole process through which a user can complete the transaction. Generally, the end-users need to follow the path
➢ Registration Process of Users
To make a successful transaction in a mobile-based wallet, the users need to register themselves. Registration can be done with a working email id or a mobile number.
➢ Authorization of Banking Details of the Users
After successfully completing the registration part, the users need to feed the banking details in the respective mobile wallet app. In some cases, the banks need to verify the customers’ credentials who requested to register their banking details.
➢ Parking the Money in the Mobile Wallet
The third part is to add money from the bank to the mobile wallet app. The banks, with the help of OTP (One Time Password), allow the money to be in the mobile wallet app. This money is later used to pay to vendors for the purchase of services or goods.
➢ Fund Transfer
The money parked in the mobile wallet can be transferred to friends or colleagues. In other words, with the help of a fund transfer facility, the mobile wallet application works as a bank.
➢ ePassbook
ePassbook is one of the most sought-after facilities in mobile wallet applications. It allows users to check their balance without the hassle of going to the bank’s website each time.
To beat the competition, mobile wallet apps use different methodologies for customer retention. To retain and increase the customer base, mobile wallet applications usually use the following methods
➢ Cashback Offers
The cashback offers are tempting and the most prominent customer-attracting policy of mobile wallet apps. Even giants like Google Pay and Amazon Pay have Cashback offers.
➢ Redeem Points
Many businesses with large customer bases often choose ‘redeem points’ as their customer retention policy. This method allows for the retention and increase of the customer base. Airline industries too, in the name of ‘travel hours’, use this policy.
➢ Exclusive Offers
Exclusive offers through mobile wallet apps are one of the ways to attract and retain customers. Exclusive offers suit online fashion and retail industries, which can offer ‘Sale’ in their exclusive offers section.
Mobile Wallet Applications offer users a fast, secure, and easy to use way for financial transactions. Considering the facilities a mobile wallet app provides, it is no wonder why it has become a new mini bank in the pocket.
The Mobile Wallet Application has the Following Facilities:
➢ Easy to Use
Customers or users worldwide are increasingly tempted to use Mobile Wallets. The biggest reason for this attraction is ‘it’s easy to use the feature.’ The age group is varying. Easy to use this wallet has made its mark on every age group of people.
➢ Safe and Secure
Users, especially older ones, find it difficult and less secure to go to the bank to perform banking activities. Now the mobile wallets offer secure banking activities from the comfort of home.
➢ Multi-Tasking
Nowadays, mobile wallets offer several services which can be performed. Be it an electricity bill or booking a movie ticket, everything is within its reach. The exciting part is that bills can be submitted to small vendors, too.
Even mobile wallet apps are emerging as a new way of banking and financial transactions. Still, the future is full of challenges. Below are the unique challenges that Mobile Wallets are facing or are going to face in the future
1. Low Connectivity: Low network coverage is one of the biggest hindrances in emerging economies such as Asia and Africa. Still, a considerable number of people live in remote areas where the signal is low. Low signal makes it difficult to use mobile wallets.
2. Low Technical Literacy: This problem persists even in the developed world, where many people don’t have technical knowledge.
3. People’s Confidence: Still, vast numbers of people are not confident about sharing banking credentials online. They have a sense of fear of getting their data hacked. This fear never lets them choose a mobile wallet application.
1. Apple Pay: The mobile wallet application is for customers who use smartphones with iOS. If statistics to be believed, until 2017, around 127 million people use Apple Pay.
2. Android Pay: The mobile wallet is for customers who use smartphones with the Android Operating System.
3. Paypal: The most trusted brand in mobile and a web-based application for banking transactions globally.
1. Venmo: This is a mobile wallet app that PayPal owns. The app is only meant for US-based clients. To date, it handled around $12 billion in transactions in 2018.
2. Google Wallet: The name also knows it of Google Pay. It allows people to send and receive money from a mobile device or desktop.
3. Jaxx: The mobile wallet application is meant for cryptocurrency transactions. The emergence of new technologies like blockchain has created a pressing demand for wallets for cryptocurrencies, too.
In this blog, we have seen how the Mobile Wallet Applications are emerging. The technologies discussed above to develop such applications are used today. Millions of people worldwide are using mobile wallet apps & this number will only rise shortly.
Experts known to the subject and other mobile app development companies even predict that mobile wallet applications will play a more significant role in the banking sector. Some also think it will work as a core banking system.
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