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By Abhyudaya Tripathi
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04 Jul, 2019
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~ 11 minutes to read
04 Jul, 2019
~ 11 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 they are needed.”
– Jerome Powell
The recent trend saw how popular mobile devices are. The use of these devices broke all the boundaries and set new standards. With business getting online and more and more people too are going online. As a result, money also is finding its way Online.
While the number of countries, promoting an online mode of payment is growing day by day, it is appealing to masses too.
According to ECommerce News Europe, an online business magazine, the countries preferring online mode of payment is increasing.
The online business magazine published a report which shows the online mode of payment of the top three countries of Europe.
Such is the craze for the online and mobile-based ballet payment systems. And the most exciting part is, this number is increasing at an astonishing rate.
Sensing the appropriate time of developing a mobile ballet application, lots of business are getting attracted to this new exciting area of business.
If you are one of them, be with this blog. You are going to find ”Gold Nuggets” as this blog about different aspects of Mobile app development and wallet development
Before we move further, ‘let’s look a fantastic journey of mobile wallets till 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 present on your mobile phone”. This digital wallet is safe, secure, fast, handy, and above all, 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 upon the method of payment used by mobile wallets, there are four categories of Mobile Wallets apps
(a) Wallets Dependent Upon Communication Provider: The end users use Communication provider for any transaction.
(b) Wallets That Use Sms for Approving Payments: Transaction is approved using SMS from a bank account, debit card or credit cards.
(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 wallets get used for fast payment. Special chip is used in mobile devices to process the payment.
Based on the uses and number of users, technologies are different for a different type of Mobile Wallets. Successful Business Mobile App have the right technology. So, you should follow that trend carefully.
(a) Direct Career Billing
This technology is mostly used for a small base of users. The wallets which use Direct Career Billing are dependent upon the communication provider for their transaction.
Also, this method of payment is most traditional and been used for years now. The technology lets users make a purchase with the help of their phones without the necessity of entering the date of credit or debit card.
For example, small scale business 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.
(b) QR and BAR codes
Another technology which 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 which support the QR and BAR Code comes with inbuilt camera scanner which lets the device identify the right point of sale.
Many shopping malls, as well as small scale business, use this type of Mobile wallet because it is easy to use process.
(c) Near Field Communication
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.
(d) Cloud-Based Solution
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.
(e) Bluetooth and iBeacon Technologies
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 successful completion of 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 credentials of the customers who requested 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) allows the money to park it 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 already parked in the mobile wallet can be used to transfer to friends or colleagues. In other words, the mobile wallet application with the help of fund transfers facility work as semi bank.
➢ ePassbook
ePassbook is one of the most sought after facilities given by Mobile wallet applications. It allows users to check their balance without any hassle of going to the bank’s website each time.
For beating the competition, mobile wallet apps use different methodologies for customer retention. To retain and increase the customer base, usually, mobile wallet applications use the following methods
➢ Cashback Offers
The cashback offers are tempting and most prominent customer attracting policy of mobile wallet apps. Even giants like Google Pay and Amazon Pay has Cashback offers.
➢ Redeem Points
Many businesses with large customer base often choose ‘redeem points’ as their customer retention policy. This method allows retaining as well as increasing customer base. Airline industries too, in the name of ‘travel hours’ use this policy.
➢ Exclusive Offers
Exclusive offers through mobile wallet apps are one the ways to attract and retain the customers. Exclusive offers suit online fashion and retail industries which can offer ‘Sale’ in their exclusive offers section.
Mobile Wallet Applications are offering users a fast, secure, and easy to use way for financial transaction. Considering the facilities, a mobile wallet app gives, it is no wonder why it has become a new mini bank in the pocket.
The Mobile Wallet Application 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 going to face in future
1. Low Connectivity: In emerging economies such as Asia and Africa, low network coverage is one of the biggest hindrances. Still, there is a considerable number of people who 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 the vast number of people doesn’t have technical knowledge.
3. People’s Confidence: Still, there are vast numbers of people who 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 the customers who use smartphones having the Android Operating System.
3. Paypal: Most trusted brand in mobile as well as a web-based application for banking transactions across the globe.
1. Venmo: This mobile wallet app which is owned by Paypal. The app is only meant for US-based clients. Till 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 pressing the 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 application are used in today’s world. Millions of people worldwide are using mobile wallet apps & this number is only going to rise shortly.
Experts, known to the subject and other Mobile App Development Company even predict that the mobile wallet application is going to play a more significant role in the banking sector. Some also think that it will work as a core banking system in the years to come.
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