Things to Consider While Building a Digital Wallet – Cubet’s Application Development Notes

The digital and fintech space has seen vast changes after the Pandemic. And with the growing demand, it will continue to evolve further. Today, let’s talk about digital wallets – a technology that has become a need for most businesses. And by 2029, it will become one of the dominant technologies in the Fintech space.

It is estimated that by 2023 over 1.31 billion mobile payment transactions wil be done by global users, which is a considerable spike from 950 million users in 2019. Not just this, according to Visa, more than 70% of transactions are now done electronically. 

The popularity of digital wallets increased to $1449.56 billion in 2020, and by 2026, it will grow to $5399.6 billion. So let’s discuss the value proposition of this technology for the industry. 

Benefits of developing digital wallets 

1. Helps to reduce fraud

The data stored in mobile wallets are encrypted, which means that your card information is secure. Besides, mobile wallets use codes that cannot be used again. In addition, they rely on security features, which include biometrics. Moreover, your transactions are covered by the same security and protection as a physical card. 

2. Trims your wallet content 

Many mobile wallets let you store loyalty and gift cards. It allows you to make purchases when you need them. However, this is in addition to credit cards and debit cards. 

3. Saves time

Payment through a mobile wallet saves time. You can pay using your phone over the payment terminal, plus verify our purchase on the spot. Additionally, you can complete the transactions in a few seconds. 

4. Improved comfort 

You don’t need to keep dozens of papers and documents inside your wallet as the information is stored in the digital wallet. Plus, you don’t have to waste time searching for them when you need them. Everything can be managed in one go. 

5. You can shop on the go 

Forget about credit cards and debit cards, as it’s easier to pay through mobile wallets when you shop online. When you use a mobile wallet, you reduce the number of places where the card number is stored, ensuring a secured purchase.

From Developer’s Notes

Things to consider before developing a digital wallet

Digital wallet technology has many benefits for consumers and service providers. It enables the payment-making process and completion of all the digital transactions without cash. 

Besides, advanced encryption ensures that the customer information is secure and won’t leave the user’s device. Digital wallets are easier to maintain, and they cannot be lost. The data is secured and encrypted – adding to the vendor’s credibility.

1. Select your type of digital wallet

Digital wallets are different, so the functions and features might differ. While creating a digital wallet, you will need to consider suitability first. 

• Open-loop or closed-loop wallets can be used anywhere and for any transaction. 
• Mobile banking apps offer robust features, and you can use them with financial services provided by Banks.
• Crypto wallets are new in Fintech, and you can buy, hold or transfer cryptocurrencies through the wallet. 

2. Consider the features

Consider the functionalities as it should enhance the usability. You need to ensure that all the transactions are safe and won’t affect the customer data. By improving the user experience and simplifying access to mobile wallets, you can enhance usability and reduce the bounce rate. 

• Other significant features that you should consider are – informative transaction history, convenient budgeting trackers, and valuable rewards. 

3. Choose the best technologies

Creating a digital wallet or any app needs to go through the development process, including front-end and back-end development technology. 

• To ensure that your wallet is flexible and secure, use different native development tools like – Kotlin(Android) and Swift(iOS). Additionally, ensure it supports all the updates from the OS. 

4. Make a unique prototype

When you begin with the process of building a digital wallet, stick to a unique prototype. By doing so, you can save time, added resources, and cost on building the technology. 

Moreover, you can plan the screen designs based on the liking of your target audience. Also, target the pain points- once the app is ready to use. 

5. Develop and test digital wallet

After your prototype is finalized, you can start with the process of app development. Also, to ensure that your app is the best and bug-free – you can hire a professional team of developers or a mobile application development company.

• Experienced developers test your digital wallets before launching, ensuring a successful launch. Most developers are adept in development and testing, delivering high-quality products. 

6. Security aspect  

Even the more prominent brands on the internet are not immune to cyber crimes and hacking. That is why your business or brand needs to be hands-on about security. Security is an essential part of a digital wallet. Some of the security aspects while considering digital wallets for E-com sites,

• Should Use SSL for Secure Connections

HTTPS is important from a security viewpoint, and your digital service provider should have an SSL certificate in place. They must check the security details before providing the security. 

• Should Use Tokenization

If you choose a digital wallet with tokenization, you can reduce payment fraud, and you don’t have to store the customer’s data on your servers. When selecting a payment solution, the card holder’s data doesn’t rely on the servers. However, the information is encrypted before being stored. 

• Should be PCI DSS Certified

PCI certification is a must for processing payments on your platform. The PCI DSS (Payment Card Industry Data Security Standard) provides guidelines for merchants that help them secure sensitive data. 

• Should Use Proper Sandboxing 

With sandboxing, you can separate the running programs. In addition, a sandbox provides a controlled set of resources for the guest programs. 

Lastly, Implement Proper Testing Techniques

It is vital to test your E-wallet during the early and last stages of development. Testing lets you know about the soft spots and issues before the launch of the E-wallet. You can use adequate quality assurance to identify and eliminate encryption and authorization techniques vulnerabilities. Automated testing tools such as Azure DevOps and Cucumber can help you.

Digital wallet is a futuristic technology 

Digital wallets are not adopted globally due to safety concerns. You can give your E-wallet an advantage over your competitors by enforcing security practices.

The above security mechanisms and factors should promote efficiency associated with E-wallets. In addition, the increasing use of smartphones and the availability of digital wallets will help scale your business.