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How to Create a Digital Wallet?

How to Create a Digital Wallet?

10 min read

Banking and finance are going through a big change toward digital. Most of the big banks in the US are getting rid of tap-and-pay cards and switching to digital wallets. As a result of the COVID-19 pandemic, people are expected to use digital wallets a lot more, with 70% of the world’s population using them by 2025.

Google Pay, Apple Pay, PayPal, and Samsung Pay are just some of the companies that make a digital wallet app and move the sector forward. By 2025, mobile commerce could make up as much as 80% of all e-commerce. The most digital wallets are used in Singapore, China, and Hong Kong.

What is a Digital Wallet?

The digital wallet is a digital solution that gets rid of the need for plastic payment cards. This helps both users and financial institutions.

Types of the Mobile Wallet Apps

If you want to create a digital wallet app, you should know that not all wallets for digital money are the same. If we look closely at all the different apps out there, we’ll see that they all have different goals and ways to be used. Let’s look at the most common ways to pay with a mobile phone right away.

Open-Loop / Closed-Loop Mobile Wallets

Different situations need different kinds of wallets, they are called “open” and “closed”.

Closed-Loop: Walmart, Starbucks, and 7-Eleven are all examples of this kind of business. Customers can’t use any of the apps to pay for a big range of things they need, like rent or an Amazon Prime membership. That’s because they exist to give buyers more freedom and more reasons to buy from certain businesses. When used in this way, a mobile wallet could replace a storefront and make it easier for a business to talk to its customers.

Open-Loop: When it comes to open digital wallets, customers can add as many cards as they want, connect as many bank accounts as they want, and most importantly, pay for anything they want. They can use a digital wallet like Google Pay or Venmo to pay for Uber rides, energy bills, and just for anything else. They can add any number of credit/debit cards, gift cards, etc. to the wallet.

Mobile Bank Extensions

In 2023, it’s hard to create a wallet app without features like adding money to a card, making a payment, or sending a money transfer. Most of the time, these wallets have a lot of useful features, but users can only use the banking services of one institution.

Crypto wallets

You can create e-wallet app that can be used to store and move Bitcoin, Ethereum, and other cryptocurrencies between users. That’s the basis for any crypto investment (called “staking”) or trading (called “trading”). Once only available on the web, crypto wallets are now moving more and more to mobile platforms, where most of their users spend most of their time.

Popular open wallets like Venmo or Cash App often include crypto-based features to attract and keep more users.

How Do Digital Wallets Make Money?

Most of the time, the best providers that build a mobile wallet app for Android focus on just a few business models, like mobile top-ups, bill pay, digital wallets, and e-commerce. Almost every digital wallet company started out by offering recharge services. Next came bill pay, then a wallet, and finally an e-commerce platform.

The operator pays a fee of about 2% to 3% to the digital wallet business for each recharge that is done through their platform. For example, a mobile network pays a fee when a customer uses a digital wallet to recharge the cell phone.

As with other types of bill payments, like those for utilities or tuition, the service provider may pay a commission to the company that runs the digital wallet. Also, companies that offer digital wallets get a fee based on the final price of a product sold through their platform. This is especially true in the business of online shopping. Commission rates can be anywhere from 0% to 20% of the final selling price of the product.

There are some other models:

  • The sellers pay a monthly fee to wallets so that they can have a place to sell their goods.
  • Digital wallet companies like FreeCharge and Snapdeal make money when their customers move between their sites. If, for example, a customer switched from FreeCharge to Snapdeal, Snapdeal would pay FreeCharge money.
  • When customers use debit or credit cards on sites that offer digital wallets, banks have to pay fees to the sites that offer digital wallets.
  • Some sellers choose to start selling their goods only on wallet firms’ websites, and the wallet firms get a big interest.

Must-have Features of an E-Wallet

Your mobile app will require distinctive features to compete with other financial management tools.

Registration, sign-in, and onboarding

Your wallet, like any other mobile software, must first provide a smooth onboarding experience for new customers. Think of a quick and painless manner for users to enter their billing and other information, for example build a digital wallet with a key.

New users should be able to sign up using their phone number, which can also be used for two-factor authentication. Social authentication methods like Facebook are also worth looking into.


Money is kept in wallets so that customers may make purchases. Because of this, it is essential that mobile wallets provide easy methods of making purchases. In addition to this, you’ll need to facilitate users’ ability to make and receive monetary transactions with one another.

Transaction history

When you create a mobile wallet app, there has to be a simple and straightforward record of all financial dealings. It would be helpful to have search, filter, and sort functions here.

Budgeting tools

At first glance, it may seem like budgeting is one of those tasks that need its own dedicated tool. At the same time, a customer’s mobile wallet may be more useful if it revealed their spending patterns across different types of purchases and offered suggestions for saving money.


Brand-specific “closed wallets”, like those for 7-Eleven or Starbucks, often have in-app product displays. However, it’s possible that you make a mobile wallet app in Android that has affiliate connections with a number of different businesses in order to offer items and services that are popular with your audience.


Let’s pretend your wallet offers customers the option to buy a cashback card or earn rewards simply by making purchases. In this situation, a separate panel displaying a balance summary, or cashback, etc., may be required for these incentives.

Crypto, investing, and other advanced features

Lastly, make sure there’s a place in the app for specialized features. Among the capabilities of competing digital wallets that have caught my eye are the ability to create a digital currency wallet where people can make loans, divide up bills, trade and invest in cryptocurrencies, and make and receive investments.

Why Were Digital Wallets Unpopular When First Created?

We’ve already talked about how the main benefit to create wallet application is how much people need it. Even though a digital wallet has undeniable benefits, you should be aware of a number of potential pitfalls before, during, and after the creation process that could have a big impact on how well your product does.

Fraud and security. Hacking and security breaches can do a lot of damage to a company’s reputation and cause them to lose a lot of money. During the iOS development process, it’s important to keep working on making mobile wallets more secure and getting rid of these threats.

Awareness and adoption. Even though digital payment methods are widely used, some people still worry about their security, privacy, and other things when they use them. That’s why it’s important to put time and money into getting the word out about a hot new way to pay and teaching customers how it works and what benefits it might offer.

Merchant accepting. Customers won’t use contactless methods of payment if businesses aren’t ready to accept them. Because of this, it’s important to help clients at every step of using mobile wallets so they can use different ways to pay.

Compliance with legal requirements and standards. When making a digital wallet, it is very important that it follows all the laws. This is not only in the best interest of the companies, but it also lets them give their clients the best service possible.

Device compatibility. To get people to use a digital wallet, you need to do more than just make it. You also need to keep the software up to date so it works well on all platforms. So you require iOS as well as Android development.

Wider functionality. The idea of a mobile wallet is based on the idea that it will be used for more than just sending and receiving money. To stay at the top of the market, it’s important to use technologies that expand the app’s features beyond the usual ways to buy things inside the app.

There is no doubt that there are a lot of problems to solve when making digital wallets. When all of these things are thought about and put into action, however, a competitive, high-quality solution can be made that will definitely convince users to start using mobile wallets.

Which Companies Make the Technology behind Digital Wallets and Payments?

The digital wallet market was worth $3 billion in 2022. By 2027, it is expected to be worth $7,5 billion. Asian economies, especially China, were ahead of the curve when it came to accepting contactless payments. However, the United States was behind because retailers were slow to adopt mobile payment technology.

But the US has passed China to become the second-largest market for mobile payments, with expected $698 billion by 2023.

Here are some interesting facts about the e-wallet market, which is growing quickly:

  • About a third of those who use digital wallets also use three or more.
  • The number of transactions done with a digital wallet around the world went up by 7% in 2020. The survey says that by 2024, more than half of all eCommerce payments around the world will be made with digital wallets.
  • 67 % of stores accept contactless payments.

Examples of Digit Wallet Companies

Before you create wallet apps in iOS, let’s look at what the market leaders are doing.

GrabPay is one of the most popular eWallets in Malaysia. Grabpay lets people pay for things like bills, groceries, food, rides, prepaid reloads, and more, all in one app.

Elvn crypto messenger developed by Dashdevs that combines the features of a crypto wallet, a cryptocurrency trading platform, and a social media network. Dashdevs was the first company to make wallet app for iOS that brought together many crypto platforms to meet the needs of both businesses and their customers. Our team was able to meet the deadline by coming up with a high-quality, fully working solution in just three weeks.

PLC Wallet is an app to calculate and make transactions within the Platincoin system. It is also Developed by DashDevs team. The goal of the program is to make using cryptocurrencies easy and available to everyone, even if they don’t know much about them or have used them before.

Another app developed by our team was Daalder. Daalder is an app that lets customers and merchants exchange money using a mobile device. Stores can receive direct contactless and mobile payments, which means they don’t have to pay the high transaction fees that are often associated with these payment methods. The program also lets you make a joint wallet so that you and a friend can split the cost of a bill.

Vodafone began to make wallet app for iPhone, M-Pesa, in 2007 as a way to send money, pay bills, and get small loans through mobile phones. It is the best way for both banked and unbanked people to send and receive money across the continent because it is safe, secure, and cheap.

Paytm is one of the most used payment apps in India. It is the standard because it makes UPI and digital wallet payments for customers faster, smarter, and safer.

PayPal is the best payment service on the market. Its One Touch software lets you use your phone to pay for things both online and in person. Both Android and iOS devices can use the app.

Alipay is the most used third-party payment service in China. Alipay lets users store their credit/debit card information so they can use their phones to pay online or in stores.

To Sum Up

As you can see, a digital wallet is one of the most important innovations in the young but quickly growing fintech field. Now that you know everything you need to know about how to do it and what problems and traps you might run into along the way, you’re ready to start making your digital wallet.

For digital wallet app development and other financial software, one of the best things to do is to hire a team of developers with strong expertise and professional skills. DashDevs has helped businesses in a wide range of fields serve their customers better by giving them access to cutting-edge technology and creative solutions. Our professionals have always shown that they can handle the hardest jobs, which lets us make better software.

Get in touch with us right away to find out more about how we can help you make a digital wallet that is the best in the world.

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