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Are you a founder, a product manager, a FinTech company, or an executive from a financial institution with a desire to build an e-wallet application?
If you gave a positive answer to this question, then read this for all you need to know about creating an e-wallet app from scratch.
In this article, we’ll touch on the following points:
If you prefer visual to text, then go straight to the “How to develop mobile wallet application”.
Let’s get straight to the point.
Take a look at some statistics suggesting why you should own an e-wallet:
To avoid just dry numbers, let’s look at a real-life example of mobile app development in the e-wallet niche.
A company that has excelled in this industry within a short time frame is Revolut.
Revolut is a financial technology company with an e-wallet app that helps users gain more from their money.
Although the startup launched in 2015, it currently has 4.5 million users worldwide and is valued at $1.7 million.
Revolut is the perfect example of how fast a FinTech startup can grow with an e-wallet application to make payments, and then transform it into , an all-in-one service provider with a bunch of different financial services.
We hope that you and we now have the same understanding of the market reasons for launching a new wallet app.
Let’s take a look at the cost of developing an e-wallet application.
The cost of e-wallet app development varies from $45,000 to $250,000.
The required budget depends on multiple developmental factors such as the number of integrations, complexity of workflow, and type of the development team.
Beyond these developmental factors, the design and discovery phase also has a role to play in determining the .
To calculate the here and below, we will use the example of an app, which requires 1,500 development hours.
Below is a spreadsheet depicting the team-type cost of developing an e-wallet mobile application.
|The US development agency||220,000|
|Ukrainian outsourcing agency||70,000|
In addition to the type of team, the price of digital wallet development is influenced by the location of the team.
Here is a breakdown of development costs by the countries.
We’ve looked at the key pricing factor in digital wallet development. The creation price is directly proportional to the complexity of the application.
However, the hourly rate in different countries makes the difference, note the difference of 100 hours: $4000 in Ukraine or $17,000 in the US.
So let’s look at the step-by-step process of e-wallet app development, which determines the necessary budget for the design, development, and support of the application.
Here are the steps to follow in developing your e-wallet. It would help if you did not skip any of these steps as they’re all intricately linked to building a user-centric product.
Let’s take a look at the 7-step checklist:
But this is an extremely succinct idea of what the development process looks like. Let’s go through the details of creating an e-wallet app from scratch.
is the first step in developing an e-wallet. This stage is designed for the development team to understand the concept, audience, and market of the future application.
This will greatly reduce the risks of creating a useless product, and help plan the budget for the design, development, support, and promotion of .
In turn, the discovery phase consists of sub-steps that are incorporated into the overall development process, namely:
The price of the discovery phase is about 10% of the price of developing an online wallet. Accordingly, the cost of time, also 10% of the total estimate.
As a result, the founder will enjoy better productivity from the development team and a more consumer-centric developmental process. This will help create a useful product that your users will love.
It also allows you to see the weak points of the existing concept and plan with the development team on how to improve it.
Now let’s look at some specific key points to consider during the project discovery phase of your e-wallet app development.
Regulatory compliance is an organization’s adherence to laws, guidelines, and specifications.
To thrive as an e-wallet company, it’s a no-brainer that your startup’s operations need to remain within the jurisdiction of the law.
In the U.S. for example, there is a gamut of state and federal regulations that lays down the modus-operandi of an e-wallet app.
Some of those laws as it pertains to developing an e-wallet are:
Beyond these, states also have regulations that you need to constantly monitor for changes.
Beyond the regulatory compliances that enforce user data security, your startup has the moral right to draft and implement means to safeguard payment information and other sensitive details.
Some great ways to guarantee top-notch data security features include:
The risk of fraud in e-wallets apps is super-high, and this shouldn’t come as a surprise since it’s a financial product.
To mitigate fraud, it’s important to have app components for detecting fraud patterns. One such pattern is a new user making an unusually high transaction.
A user logging in from an unusual IP address should trigger your anti-fraud detection system. Also, if the consumer regularly funds his/her e-wallet account with cards that have different financial information, another red flag should come up.
By watching out for patterns like these, the risk of fraud is greatly reduced.
These are the main points to watch out for in the discovery phase of an e-wallet application.
Now let’s take a dive into the nitty-gritty of the design phase.
The design phase is as important as the actual development process itself. Why?
This is because it helps to map out the experiences of users, and can also assist the developers in further understanding the expected features in the application.
Every button designed in this phase will be developed as a separate feature during coding. If we take the simplest example, then an app’s homepage that’s designed with 10 clickable elements takes more time to be complete than one with 8 buttons.
So, pay attention to the matching of your expectations and UX/UI design. More complex design leads to increasing the and development.
Steps involved in a typical design phase are:
Each process can be time demanding as every step has to be thorough. Here is an approximate number of hours required for each step.
For the calculations, we used the same example we used in the part about price:
|Total For Design||160|
By the end of this phase, you’ll have the interactive prototype. It’s your UX design with UI kit on it, i.e. it would look like the real application, but without any code behind it.
For a much better synergy of the design and development phase, the developers should have an interactive prototype to understand the expectation of the team. The clearer the delivery from the design phase, the more intuitive the live app will be.
Here’s an we made.
Once the design is ready, you can start developing.
The ultimate aim of this stage is to have a live online payment app endowed with requisite features as agreed in the discovery phase.
The end product of this stage is either a fully responsive MVP or a full-scaled e-wallet mobile application.
MVP, which stands for a minimal viable product, introduces the app’s basic features to the target market. This is often done to understand the response of the market to the product.
Once favorable, the development team then scales up the app to a more desirable product with more user-engaging features for a better user experience.
|User Authorization||User authorization is an in-built security feature of the app that grants users access to certain functions.
The term is often used interchangeably with client privilege and access control.
|Creation and management of profile||The e-wallet user profile is a place for storing user settings and information associated with a particular account.
It contains vital information that you need to identify a user. This often includes age, name, address, etc.
|Synchronization of payment cards||This feature helps to link a user’s debit card, a credit card, a loyalty card, and others, with a bank account ensuring that the user can seamlessly load their e-wallet account with funds.
Since some users have multiple bank cards, it’s best to add many card information for payment options to a single e-wallet account.
Basically, create numerous payment gateways.
|e-Receipts||e-Receipt is proof that a payment system has completed a transaction. It’s just like a receipt, but it’s issued electronically via mail or a digital wallet app.
This feature notifies the user of a successful transaction and reveals the exact amount that was sent to the receiver.
|GPS Tracking||GPS tracking is an advanced-level security feature that allows the e-wallet app to use geolocation information to authenticate a customer’s identity.
This identity theft and impersonation.
|Statistical and analytical reports||Statistical and analytical reports provide users with insights like expenses to income ratio, month-to-month expense comparison, etc.||400|
|Push Notification||This feature calls the attention of app users to new information on the e-wallet app.
This could be information from the e-wallet company, funds received, or an available update.
|Total for an e-Wallet MVP||
If you’d rather opt for a full-scale app with all user-friendly features, then you should consider adding features such as:
While these features don’t add to the main functioning of the app, they create a more appealing virtual environment for users. Thereby ensuring a better user experience.
The required team you’ll need to complete an e-wallet app that’s embedded with all features mentioned above include:
To create a noteworthy e-wallet that can give your startup a unicorn valuation, you need to create your app with a compendium of tech stacks. These include:
|Area||Available Tech Stack|
|Frontend||CSS, Bootstrap, HTML 5, Vue.js, React,js|
|Mobile||React Native, Nuxt|
|Database||MongoDB, Cassandra, HBase, MySQL, Postgres|
|Payment methods||MasterCard, Paypal, Stripe, PayUMoney, Apple Pay, Google Pay, Samsung pay.|
|QR Code Scanning||ZBar Code Reader|
|Real-Time Analytics||Spark, Flink, Apache, Big Data, Hadoop|
|Push Notifications||Amazon SNS, Urban Airship, Push.IO, Twilio|
|Geolocation||Google Maps API|
|Cloud Environment||Google Cloud, Azure, Salesforce, AWS|
|NFC||Near field communication APIs|
Now let’s talk about what happens once the development is done.
After creating a catchy, and super effective e-wallet app, what else? The next step is to release your product for the consumption of your target market.
This last step is essential to the profitability of your startup and its existence as a FinTech brand.
However, work doesn’t end with just launching your product, as you need to expend a great deal of time on maintaining it. Beyond that, you also need to curate strategies to ensure that your target audience knows that your e-wallet exists.
Also, maintenance is key!
To properly maintain your e-wallet product, you need a fully dedicated app maintenance team.
Normally, this team will comprise just a few developers, and their budget in an ideal scenario is 25% of the app development cost. That means a $100,000 app will need an annual maintenance budget of $25,000.
Beyond maintaining your product, they should also keep tabs on users’ feedback and revert to the management team on customers’ opinions. This will give you a hint on possible features to add, remove, or reconstruct.
Irrespective of your app type, the bulk of your budget for this phase will be expended on the following:
After studying this article, we are certain you now understand the intricacies of mobile wallet app development.
However, you need a reputable e-wallet development company to create a digital payment solution that is reliable.
At SpdLoad, we have a gamut of skillful professionals with the ability to deliver a highly sought-after e-wallets app in a couple of months.
Don’t take our word for it; kindly visit or navigate through .
Here’s a summary of our in-depth guide. Learn the highlights of the mobile wallet application development process in 2021.