The Complete Guide to E-wallet App Development: Types, Benefits, and Key Features

However, there is no single type of e-wallet app. Check out various types of e-wallets and explore the significant advantages their development offers to your business. 

What is an E-wallet App?

A digital wallet app is similar to a physical wallet. However, unlike storing physical cash or debit or credit cards, it stores their details. These apps are linked to the bank accounts for accessing account details, checking balance, and making transactions. 

The app also allows users to save their cash in the wallet and pay directly through any device- smartphones, desktops, or laptops. 

Types of E-wallet Apps in the Store

E-wallet apps are broadly categorized into three categories. 

1. Closed wallet
2. Semi-closed wallet
3. Open wallet

What is a Closed e-wallet?

Also known as closed-loop wallets, such applications allow payments to specific companies or partner networks. A ride-sharing app is a good example of a closed e-wallet type. Users can only pay for their ride to the partner company through the app. 

Real-world examples: Amazon Pay, Starbucks app, Uber Cash

Who Should Invest in a Closed E-wallet App Development?

These apps are great for retail stores and e-commerce businesses as their customers usually prefer online shopping. They want speed, security, and convenience while making transactions. Since closed-loop wallets have limited partner networks, they are more secure and fast. 

What is an Open-Loop Wallet?

Unlike closed-loop e-wallet apps, these are not specific to a company. Users can pay to any company, physical stores, and online retailers who accept online payments. These are the widely used types of e-wallet apps and offered by fintech and banks. Besides payments, users can also transfer cash to different bank accounts through open-loop wallet apps. 

Real-world examples: PayPal and Apple Pay

Who Should Invest in an Open-Loop E-wallet App Development?

Small and medium businesses can expand their customer base by partnering with popular digital wallet providers. Google Pay, PhonePe, Paytm, and Apple Pay are good options as many customers prefer these apps for payments. 

E-commerce platforms also accept payments through these digital wallets to enhance their customer convenience. So, if you are into an e-commerce business or run a small business, get an open-loop e-wallet. 

Also Read: Breaking Down the True Cost of Mobile App Development

What is a Semi-Closed Wallet?

Such digital wallets are issued by authorized providers and used within a network of participating companies. 

Real-world examples: Google Pay, PhonePe, and Paytm

Who Should Invest in a Semi-Loop Digital Wallet?

This type of e-wallet is good for businesses with established brand loyalty and partner networks. Large retail chains with franchisees, restaurant groups, fintech startups operating in niche markets, e-commerce platforms, and subscription service providers should invest in such wallet apps.

No matter which type of e-wallet app you are developing, it will help your business and customers in many ways. Here are some of the advantages you can expect. 

Key Benefits of E-Wallet Application Development

1. It Increases Sales 

Digital wallets streamline the checkout process adding a swift and convenient customer experience. It results in more purchases and sales, increasing the sales conversion rates. Another way to increase sales is by rewarding loyal customers through loyalty points. This encourages repeat purchases and increases revenue for your business. 

2. It Gives Convenience 

Customers don’t like to handle cash or carry cards whenever they shop, especially if it's spontaneous. The e-wallet mobile app gives them multiple payment options while reducing the need to manually swipe the card. 

This cut both customers and cashiers’ time at the checkout stage. It also helps customers keep track of their spending and balance at their convenience. 

3. It Reduces Fraud 

Payments through e-wallet apps are more secure and likely to reduce fraud. They work on robust security measures such as multi-factor authentication to ensure every transaction is safe. 

Furthermore, every transaction is recorded along with details like timestamp, date, and recipients and senders’ details. This information is useful in case of incorrect payments, helping customers get back their money or claim fraud. 

4. It Provides Valuable Insights 

For businesses, e-wallet app development brings a huge amount of data on their customers. This data is valuable to understand their customers’ spending habits and preferences. By knowing these details, you can tailor the offers and get more returns on the investment. 

5. It Simplifies Transactions and Refunds

E-wallet apps make transactions fast and secure through NFC or QR code scanning. It also helps in the refund process where users can easily get their money directly to the account or e-wallet. 

What are the Important Features in a Digital Wallet?

A successful e-wallet app is one with the right features such as:

• QR code scanner
• Push notifications
• Chatbot support
• Loyalty programs
• Real-time analytics of transaction 
• Payment history 
• Multi-currency support
• Multi-factor authentication
• Fund management

Besides these features, also consider cost, target audience, compliance, and necessary integrations. However, if you are unsure hire an expert e-wallet mobile app development company. They will help you with the assessment and develop your app faster than an in-house team with limited experience.