“Do you know what pandemic promoted to the fin-tech industry on a massive scale?”
Contact-less payments with Digital wallets!
Customers and brands were not ready to transact in cash mode during the pandemic because it involved touching the currencies and increasing the risk of transmitting the virus.
Following the pandemic guidelines, brands started enforcing the concept of digital wallets on a broader scale where users can store their funds digitally and perform transactions on their desired platforms.
Digital wallets in the Fintech industries have become a standard, stating the following facts:
- Fintech solutions and digital wallets are highly used on several sites.
- Nearly 500 innovative techs launched digital wallet functionality every year, revealing its power and trend.
- By 2027, the global market predicted that the digital wallet market would gain a market share of $400 billion.
- The rise of e-commerce platforms made it essential to act on the digital wallet concepts to let customers buy and sell products seamlessly.
- Entrepreneurs must be curious about the benefits of launching a digital wallet app or functionality after reading the trends in the market about digital wallets.
Benefits of launching a digital wallet
Digital wallets pack many features for the users considering a wide range of functionalities, from the simplification of payments to gift cards. If you are an entrepreneur planning to launch a digital wallet, you will serve the following benefits:
Always available: Digital wallets simplify payment methods for users since their wallet is in their smartphones and always with them.
Cashless: Digital wallets reduce or eliminate the need to carry cash, making you contribute to a cashless economy.
Locker: Digital wallets are password-protected, meaning that you provide a digitally locked wallet to the users where their currency is safe even if their smartphones are stolen.
Flexible and convenient: Users have all the control on their wallets. They can quickly transfer their digital money from their wallet to a bank account, making them flexible and convenient.
Multiple channels: Digital wallets can accept payments from various channels, providing a universal solution.
Gifts and more: Wallets can also add and store gift cards, rewards, and virtual assets.
The benefits of launching a Digital wallet can motivate entrepreneurs to launch their digital wallets. But, it does involve some challenges.
Challenges in building and maintaining digital wallet app or functionality
Challenges while building and maintaining a digital wallet app include the pointers that entrepreneurs must inform on to prepare the best wallet app.
Fraud and security: Hacking is common on online platforms where users lose financial access to their digital wallet platforms.
Awareness and adoption: Some people are still unaware of the digital payment systems due to the data privacy risks and necessities of learning smartphones.
Merchant accepting: Some businesses do not support contactless payments making it challenging for the customers to perform digital transactions.
Compliance with legal requirements: Developing the digital wallet app requires you to follow specific guidelines prescribed by the government and authorities.
Digital Wallet building is not an easy task since it includes many challenges to meet to prepare a successful digital wallet. Although some practices can improve
Best practices to implement while building digital wallets
Several practices can ensure an efficient digital wallet and, at the same time, secure it. Let us take a look at some of them.
Choosing the type of digital wallet: Some wallets are only present for specific websites or merchants. For example, Walmart and Starbucks’s wallet doesn’t allow users to use them to pay their rent. Crypto wallets can only buy hold the cryptocurrencies. So, it is essential to decide the type of wallet you want to create to reduce the challenges.
Choose best technologies: Best front-end and back-end technologies make wallets smooth and secure. Flexible wallets with more accessible maintenance development kits, like swift for IOS and Kotlin for android, support new features, OS updates, and security.
Make it easy: Easy registration, sign in, onboarding, good UI/UX enhances the quality of your digital wallet.
Simple payment navigation: Make your payments smooth and straightforward, reducing the steps for users through AI.
Informative transaction history: Provide a detailed transaction history to the users to track the spending and generate valuable statements.
Rewards and deals: Give an option for deals and rewards to the users to motivate them
More testing: Keep testing your wallet app or functionality with the latest possible attacks and bugs to make you’re about the security
The above features can ensure and contribute to the growth and security of a digital wallet contributing to the project’s success. But users can also ensure a few steps to keep their wallets secure.
Steps Users can take to ensure Digital wallet safety.
Users can contribute to the security of their wallets with the following steps in order to safely use digital wallets.
Set unique passwords: good and strong passwords reduces the attacks on data from Cybercriminals
Update software and bugs regularly: Constantly update your patches and security for the latest possible security holes for you. Turning on automatic updates is a better idea.
Don’t use public WiFi: They are not secure, and thieves might steal your information.
Use official websites and markets: Download digital wallets from official and known platforms rather than from unknown platforms.
Use 2-factor authentication: Safest way to secure not only your wallets but all your account, using 2-factor authentication.
Conclusion
Digital wallets are always available with the users promoting a cashless economy, and users have to perform a set of tasks to keep their wallets secure. Launching a digital wallet covers a number of benefits and contribute highly in the cashless economy. From the development part, building a digital wallet app is challenging in security, interface, and acceptance. Entrepreneurs can ensure mentioned steps to promise the growth of their digital wallet projects. It becomes vital to approach the right or best app development company to discuss your digital wallet idea. A right company with expertise in the Digital wallet can help you boost your idea and growth.
