How to Create a Mobile Wallet App for Digital Transactions

People looove their mobile wallets. They fit in a smartphone ( no want to carry those bulky physical wallets ), put up more robust security ( compared to flashing a credit card in public ), and allow us to pay virtually for anything ( and do thus much more ) from the ease of our homes. If you ’ ve identified a singular opportunity and want to create a digital wallet, you ’ re in the justly place. In this web log, you ’ ll learn how to create a wallet app, some of the best practices, and what you need to win in this highly competitive niche. Top Takeaways

  • Digital wallets will rule e-commerce payments in the dear future ( 40 % by 2024 ).
  • To develop a mobile wallet with a sticky exploiter experience, you must cautiously consider the type of solution you want to build. The chief types of e-wallets include open, closed, crypto, and mobile bank extensions .
  • mobile wallet development involves a distribute of legal formalities and implies following nonindulgent security regulations, including Payment Card Industry Data Security Standard ( PCI DSS ) .

Table of Contents

1. E-Wallet Market Overview

The COVID-19 pandemic made a huge impact on the mass borrowing of digital wallets as with every other aspect of fintech app exploitation. According to Finaria, the industry will grow to $ 2.4 trillion in 2021 ( a 24 % increase from 2020 ) and may reach $ 3.5 trillion by 2023. mobile wallets stats us here are a few noteworthy facts speaking of the rapid growth of the e-wallet grocery store :

  • 32 % of mobile wallet users rely on three or more digital wallets
  • 40 % of all US e-commerce payments will be handled via digital wallets by 2024
  • 67 % of retailers accept contactless payments at PoS terminals
  • more than four out of 10 US smartphone users used a contactless payment system at least once in 2021
  • the average annual spend per mobile wallet exploiter is expected to grow to $ 2,439.68 in 2021

It besides seems that the mobile wallets from technical school giants like Apple, Google, and Samsung outperform all other competitors in the space. Compare these graphics to see what Apple Pay, Google Pay, and Samsung Pay have been able to achieve in five years : most popular digital wallers 2016 US pay vs everybody That said, many other digital wallets are competing for consumers ’ attention in the US, including Venmo, PayPal, Cash App, Walmart Pay, Facebook Pay. We ’ ll hash out different types of e-wallets and check out the most successful ones in the follow sections. For now, let ’ s focus on a copulate of trends I ’ megabyte noticing with these solutions. Being a virtual representation of our physical wallets, digital wallets have fewer restrictions in terms of what they can hold. For model, most mobile wallets allow us to add endowment cards, passcards, rewards, coupons, and other cards with monetary value, besides the omnipresent debit and citation cards .


now, it looks like e-wallets want to go far by connecting to decentralized finance services ( DeFi ) and crypto. For example, Venmo allows its customers to trade the most democratic cryptocurrencies, while PayPal does the same and, on top of that, supports crypto payments. Related : smart Contract App Development : The Complete Guide

Partnerships with banks

first, mobile wallets have taken down standalone e-wallets by major banks, and immediately they want to step back and desegregate with banking services to offer more rate to their customers. For exemplar, Google is working on a GooglePlex update to its Google Pay wallet, which will provide savings and checking accounts from leading banks. Google Pay update Plex Samsung Pay has recently partnered with SoFi, a personal finance company, to provide a seamless money management platform right inside Samsung Pay. As a solution of these new partnerships, customers can order citation cards right inside a wallet app and access other fiscal services, such as budget management or endow. Related : How to Make a Mobile Banking App

Identities and virtual keys storage

Apple Pay will be rolling out support for driver licenses, virtual hotel keys, and blue-ribbon BMW vehicles, which they ultimately envision as a feature for storing all kinds of virtual keys. We already take our phones with us everywhere we go. therefore why not carry less farce, right ?

Finance hub

I think it ’ s safe to say that e-wallets are gradually turning into sort of fiscal hubs for their owners because it ’ mho identical commodious to manage all your finances in one place. I literally envision how mobile wallets clash with fluid deposit apps, and we see more excite mergers and acquisitions .

2. Examples of the Successful Mobile Wallets

Before you build a wallet app, it makes sense to look at what the industry leaders are doing .

Apple Wallet 

Apple Wallet is a bang-up little app behind Apple Pay, which is the # 1 mobile payment choice in the US at the here and now. ewallet example Apple Wallet on iPhone Users can add their credit and debit cards, gymnasium passes, commitment cards, tickets, virtual key, and soon IDs in the app. Apple Wallet is besides the station to set up Apple Cash — an easy direction to send and receive money while messaging .

Walmart Pay

Walmart is an iconic model of a close wallet that serves more as a virtual shopfront than a wallet. Customers can entirely use the app to buy stuff at Walmart and fuel at blue-ribbon gas stations. The app uses QR codes and NFC to accept payments at self-checkouts .

Cash App

Cash App positions itself as an e-wallet/banking app. inactive, since it ’ s not tied to any specific bank, the app offers its customers a wide range of options. not alone can they make on-line payments, commit and receive money, but there are besides such features as invest, buying crypto, and moment discounts .

3. Types of the Mobile Wallet Apps

not all e-wallets are created equal. If we look closely at all the apps available, we ’ ll soon discover that their functionality and area of application disagree quite a bit. so without farther bustle, let ’ s review the most popular types of mobile wallets. mobile wallet development question banner 1

Open-loop / closed-loop mobile wallets

besides called open and closed for simplicity, these wallets differ by where you can use them. If you can pay only at certain places, the wallet is closed. Walmart, Starbucks, and 7-Eleven are arrant examples of such solutions. We can ’ deoxythymidine monophosphate pay rend or Amazon Prime membership using these apps. That ’ randomness because their purpose is to offer their customers more tractability and perks while buying products from especial companies. A mobile wallet, in this case, serves as a virtual shopfront and strengthens relationships between customers and a business. Related : How to Build a Neobank App As for open digital wallets, these allow you to add all sorts of cards and bind in different deposit accounts, but most importantly — you get to pay for anything you want. For exercise, in Google Pay or Venmo, we can add any number of credit/debit cards, endowment cards, etc., and use the wallet to pay for Uber rides, utility bills — well, about for anything .

Mobile bank extensions

nowadays, it ’ sulfur hard to imagine a mobile trust app without wallet functionality : we can fund our cards, make payments, and send money transfers using these apps. These wallets are frequently very robust when it comes to features, but at the lapp time, users can entirely deal with fiscal services offered by a particular bank. wells fargo built in digital walletCrypto wallets Crypto wallets are where we can buy, hold, and transfer cryptocurrencies. That ’ s the first thing anyone needs to invest in ( venture ) or deal crypto. Most crypto wallets used to start on the web ( because that ’ mho where blockchain technologies emerged ), but more and more of them are migrating to mobile — because that ’ s where their users spend the most time. Related: Blockchain App Development and Crypto Wallet Development As I ’ ve already mentioned, more far-flung open wallets ( like Venmo or Cash App ) tend to integrate at least some sort of crypto interactivity to engage more users .

4. Must-have Features of an E-Wallet

To compete in the e-wallet space, your app will need some standout options. But what are the top features customers appreciate in digital wallets ? Let ’ s review them one by one .

Registration, sign-in, and onboarding

Like any early mobile app, your wallet beginning needs to seamlessly onboard new users and introduce them to its functionality in a friendly manner. The obvious means to register a new exploiter is via a call total, which can besides help with two-factor authentication by and by on as they continue using the app. however, you may besides consider social authentication options like Facebook and ask for a call phone number late. Think of an easy means for users to add their calling card information and other details. mobile wallet onboarding example


Wallets store our money so we can pay for gorge. consequently, any mobile wallet needs to provide simple ways for paying for goods and services. Besides that, you ’ ll need a way for users to send and receive money from each other .

Transaction history

All payments should go into an easily accessible and intuitive history of transactions. Adding search, filter, and sorting options to this section seems like a good mind .

Budgeting tools

Budgeting may sound like it ’ s calling for a standalone app. At the same clock time, a mobile wallet could bring more respect to customers by showing how they spend their money across assorted categories and even provide advice on optimizing their spendings. Related : construction a Personal Finance App : Everything You Need to Know


Displaying products up for sale veracious inside a wallet app is typical of closed wallets that serve specific brands, such as 7-Eleven or Starbucks. however, you might have affiliate partnerships with multiple companies to sell products or services that your target audience loves .


Suppose the customer can order a cashback wag from inside your wallet or generate bonuses by making payments. In that case, these bonuses ( or cashback ) might need a dedicate screen with the remainder overview, etc .mobile wallet with rewards example 1


money is a sociable tool. That ’ south why some e-wallets, for example, Google Pay, design their wallet user experiences around the drug user ’ s relationships with people and businesses. Being able to chat and send money in one set is convenient. Related : construction a successful chatbot in 2022

Crypto, investing, and other advanced features

last, leave some room in the app for alone functionality. Some of these features I ’ ve noticed with other digital wallets include loans, beak burst, crypto trade, and investing. Related : stock deal and Investment App Development : The Ultimate Guide

5. Technologies Used When Building a Digital Wallet

mobile wallet development requires both front-end and back-end technologies. The server slope ( aka back end ) is often built with program languages like Java, Closure, or Golang and high-throughput databases like DynamoDB, Couchbase, or Oracle. To create a digital wallet for mobile, I ’ five hundred recommend sticking with native development tools :

  • swift for io
  • Kotlin for Android

mobile wallet development question banner 2 That way, you not merely ensure your mobile wallet flexibility, but you can besides count on supporting newfangled features from io and Android updates. Related : Choosing the correct technical school stack for your clientele

Customers seem to favor NFC and QR code payments if you are looking for advice on what technologies to use for fluid payments .

  • NFC is used for tap-and-pay features
  • QR codes are used for blink of an eye payments excessively, but besides as a means to transfer crypto to the correct address

You can besides use Bluetooth for that, which would inevitably mean a distribute of bustle for end users. Related : I ’ thousand not recommending any requital SDKs in this blog because it ’ s not very your choice. When integrating a payment gateway, you will have to use whatever SDK or technology your fiscal spouse is using. That means that if a depository financial institution you ’ rhenium partner with uses an SDK by MasterCard or Razor, or NMI, etc. — you ’ ll have to stick with it. Or else work on custom-made integration using your partner ’ second APIs .

6. 5 Steps to Create a Wallet App

What are the main steps you need to take to build a mobile wallet app ?

Step 1: Design and prototype

The first step is to find out how your target audience manages money and where they have problems. You then design the screens of your wallet based on these findings and put them together into an interactional prototype. mobile wallets not super popular compared to other banking channels The sole purpose of the prototype, which is a clickable version of your app implemented strictly in designs, is to verify your assumptions with actual users. Based on the feedback, you can update the prototype by adjusting the app screens, adding or removing specific features .

Step 2: Develop a mobile wallet

once the prototyping is over and you have a virtual adaptation of the wallet that customers will likely appreciate, it ’ second time to start building a digital wallet, i.e., putting lines of code in club. There are quite a few things you need to consider while creating a digital wallet. Security Of class, security comes first. Modern smartphones and clothing devices already have pretty firm security built-in. You can extend that into your app by applying bio authentication like TouchID or FaceID on the iPhone. Besides that, there are early best practices to protect your digital wallet :

  • tokenization ( using randomized tokens alternatively of actual accredit card numbers when exchanging transactional data )
  • two-factor authentication ( consider consolidation with Twilio or similar services )
  • firm data encoding ( both in transit and at rest )
  • PCI conformity ( consider VGS Mobile SDK, PaySafe, or exchangeable tools )

digital wallet security concept From the UI/UX position, you should avoid displaying medium menu details in the app in entire and offer an choice to hide balances and other data that customers may be checking in crowd places. potent passwords and SSL for transferring data are besides required. Related : The Complete UI/UX Design Guide : build a Winning App Open-ended architecture Another critical aspect to keep in mind when you build your own e-wallet is an open computer architecture, meaning the app should be able to connect with external services and ideally provide the ground-level computer architecture for other developers to build on. For developers, that means creating a set of APIs. This access ensures a vibrant ecosystem around your digital wallet as it matures, and more businesses want to connect with it and use its features. As a begin, you will credibly need to work with services like Plaid to connect the wallet to users ’ bank accounts. You will besides need to integrate with a payment gateway to process transactions. fortunately, that ’ s not something you need to build from start, as there are batch of payment serve providers available with pluggable SDKs. Use of third-party components As with any other fluid app development undertaking, you can find many plug-and-play SDKs to speed up pitch. however, due to security issues, it ’ south recommended that you choose such SDKs only for peripheral features, like chatting or image/QR code recognition .cybersecurity in ewallets is paramount The core functionality must be programmed manually to exclude even the slightest gamble of having a back door. Admin dashboard You will besides need a back-office app to manage users and their interactions with the mobile wallet. Consider using a template that supports customization to blaze through this miniskirt dance step as you make an e-wallet app .

Step 3: Test

Testing begins during development when coders implement unit tests in code to see if versatile features are working as expected. During the formal test phase, though, we need to run the wholly app through functional and UX testing. Related : User Testing Tips : Steps, Tools, Best Practices acerate leaf to say, testing an e-wallet takes a lot of skill and expertness in fluid wallet application development, and I suggest you rely on a qualify exploitation partner to go through this measure. In addition, you can hire a cybersecurity agency to perform a security audit of your fluid wallet .

Step 4: Release

once you ’ ve completed the digital wallet app development and testing steps, you ’ re ready to release your e-wallet. It takes jumping through a few hoops of Google Play ’ mho and the App Store ’ s guidelines before your app becomes available to the populace. mobile wallet development question banner 3 Plus, the server side should be switched to a alive environment and connected to the app. Hopefully, downloads will start to pile up shortly after .

Step 5: Maintain

You may feel ( rightfully so ) like you ’ re going to market with a dispatch solution. however, having in place tools collecting app custom metrics and allowing you to further improve your wallet based on how users interact with it will be crucial to your app ’ mho success. once the app is in the mobile stores, your job will be to keep it relevant by updating to support the latest o features, ironing out rare bugs, and streamlining the user experience .

7. How Much Does It Cost to Build Your Own E-Wallet App?

A minimum viable product ( MVP ) version of a mobile wallet will cost around $ 80,000, and a complete solution may end up costing $ 200,000 or more. Related : How to build a Minimum viable intersection in 2021 App Development Costs : The Complete Breakdown Remember that a huge lump of e-wallet software growth happens in the back end. That involves build APIs, a gamey throughput database, effect logic, and many early sub-rosa things that a fluid wallet can ’ thymine operate without. Plus, an admin web site. Reach out to speak with our experts if you ’ d like to learn more about how to create a fluid wallet app.

Frequently Asked Questions

How long does it take to develop a wallet app?

Around 6-8 months, depending on how many options you envision.

What technology should we pick for implementing mobile payments: QR codes, NFC, Bluetooth, or something else?

You can ’ triiodothyronine go faulty with NFC ( in terms of security and comfort of use ). however, we recommend having QR codes as an option method besides.

What is a good way to secure a 12-word seed phrase used for protecting a crypto wallet?

You can send the phrase via a text message or as a pdf to the user ’ s electronic mail. That way, the phrase never gets shown on a screen.

Can you provide an example of the innovative use of a digital wallet?

Popwallet is a cloud platform that allows merchants and other businesses to easily create digital passes and offers stored in the Apple Wallet.

Can one create an e-wallet app using React Native or Flutter for the app to work on iOS and Android?

Yes, although we recommend using native technologies to make your solution more flexible in the long run. x What is the one thing that sets apart a successful app from others ?Download our eBook Konstantin Kalinin technical copywriter Konstantin has worked with mobile apps since 2005 ( pre-iPhone earned run average ). Helping startups and Fortune 100 companies rescue advanced apps while wearing multiple hats ( adviser, delivery conductor, mobile agency owner, and app analyst ), Konstantin has developed a deep taste of mobile and web technologies. He ’ south glad to share his cognition with Topflight partners. share via :

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