As the e-commerce industry continues to expand, and consequently, evolve and thrive, the significance of mobile wallet applications and their development has also amplified. Irrespective of the size of your e-commerce business or of the industry that you operate in- consumers are growing increasingly dependent on their smartphones, which explains why mobile wallet applications are so in-demand.
Furthermore, with statistics highlighting that a staggering 50% of all e-commerce visitors utilize the app version of an e-retailer, instead of their website- the need for a secure mobile wallet solution, that lies in tandem with all principles of mobile security becomes quite apparent. And if that wasn't enough reason to invest in the development of a secure mobile wallet application, there have been estimates made by trade pundits stating that by the year 2022, the global revenue generated by these digital payment solutions is predicted to a whopping amount of $14 trillion.
With that being said, however, it is also noting that a mobile wallet app, enabling users to make digital transactions within the tap of a single finger, can also provide online companies with the little edge that they need over their competition.
In the attempt to aid our readers in understanding the intricacies that come into play in the formulation of a robust, and more importantly, secure mobile wallet application, we've compiled an article that provides insight into some key factors that come into play. Before we can get into that, however, we'd like to quickly provide our readers with a brief rundown of what a mobile wallet exactly is.
What, Exactly, is a Mobile Wallet?
Simply put, a mobile wallet application, alternatively known as an e-wallet, is a crucial financial instrument that enables both businesses and consumers to send and receive money through their mobile devices. Moreover, mobile wallets typically also contain the option to link and store multiple payment methods together, which include credit/debit cards, along with other forms of digital money. Depending on the wish of the developer, a robust mobile wallet app can also be configured to additional features, such as loyalty points, coupons.
It is worth mentioning that not all mobile wallet applications are created equal. Primarily based on the payment processes that they offer, there are significantly varying types of mobile wallet apps. The first category of e-wallets relies on using a mobile service provider for funds transfer. It is only through the aid of the mobile service provider that this type of mobile wallet app can send and receive money.
The second type of mobile wallet is those that shower their users with discounts via texting/SMS, which relies on an OTP to cater to mobile security as well. Lastly, the third type of e-wallet application is one that offers consumers the option of mobile web payments. As the digital world undergoes an evolution- so make the mobile wallet applications that we develop, which is highlighted further by the incorporation of mobile communication service providers, financial institutions into the e-wallet apps.
What Industries Benefit the Most From a Secure Mobile Wallet Application?
Since the entire concept behind a mobile wallet application entails that it'll be used for financial transactions, implying that it benefits the financial sector, although this might be true to a certain extent, technological giants as Samsung, Google, and Apple have all jumped on the e-wallet bandwagon.
They have paved the way for most mobile wallet applications today. As one of the most widely implemented digital payment methods, a secure mobile wallet benefits multiple industries, which include the following:
E-commerce and Retail:
With an increasing number of consumers relying on their smartphones for online shopping, it makes sense that mobile wallets provide benefits to the e-retail world. Not only can a robust mobile application be utilized by the retail sector for mobile e-Commerce platforms, but it can also be utilized as an addition to a pre-existing mobile shopping application. Furthermore, consumers can save information about their preferred payment methods, as well as manage their payment and transactions with ease.
Finance and FinTech, Going Mobile:
As we've already mentioned above, perhaps the biggest beneficiary of a secure mobile wallet application is the financial sector. Through the aid of these e-wallet applications, many lenders, major banks, and several popular stock trading applications can provide their consumers with cardless services, along with providing them access to a secure mobile-based payment, which comes in extremely handy. At the same time, making transactions such as paying bills- and benefits the telecommunications sector as well.
Transportation and Logistics:
Another beneficiary of mobile wallet applications is the transportation and logistics sector, who's got a lot to earn by offering their customers the luxury of having multiple payment options to choose from through their e-wallets. One such example is Uber, which allows its users to pay for their rides through their digital wallets.
How Can You Build a Secure Mobile Wallet Solution?
Whether you're developing a mobile wallet application for your new online retail business, or if you're looking to boost your sales by making your existing e-commerce store accessible to a higher number of people – you need to account for security, and prioritize it above everything else. However, having a poorly designed mobile wallet, susceptible to breaches, can actually make consumers lose money, which would result in devastating consequences for your business.
Some tips for developers and e-commerce businesses to keep in mind while formulating a reliable and secure mobile wallet application consist of the following:
#1- Do As Much Research As Possible:
As is the case for the development of any successful application, you need to have solid research backing all of the decisions that you'll make regarding your mobile wallet application in the future. Try to analyze and scrutinize the current trends in the market, the requirements of your target audience before coming up for any strategies for the development of your mobile wallet application. Furthermore, you can also look into the mistakes that other e-wallets have made in the past, and learn from them, which ensures that you make the best version of your mobile wallet as possible.
#2- Decide What Payment Option You Want to Offer:
Although there are several types of payment and invoicing options available, developers and e-retailers need to make an informed decision of what payment option they'll be offering. Some of the common options that you need to consider include online commerce payment, mobile p2p transfer, and point of sale.
When it comes to the development of a robust mobile wallet application, we'd suggest integrating NFC technology within it, which allows users to pay safely at a PoS (Point of Sale) through a smartphone. Since NFC is a remote contactless technology, which has a range of 10 cm, users can rely on it to make digital transactions rather than having to carry cash physically.
#4- QR Codes:
Perhaps the easiest way through which organizations can secure the actual transaction process is by relying on QR codes- which are particular services that develop and encrypt data and insert a picture of the code on the receipt as well.
#5- Ensure that you offer end-to-end encryption:
Another security tactic that you can employ within your mobile wallet application is end-to-end encryption. When it comes to securing a digital transaction, leveraging end-to-end encryption technology ensures that all your confidential information is being encrypted from the moment you click on the application to the last-step authorization.
Alongside the tips that we've mentioned above for the development of a secure mobile wallet application, we'd also recommend that our readers consider the significance of tried and tested security strategies, such as implementing a robust password-based authentication system and tokenization. The entire mobile wallet application experience relies on the effect that it has on the users, which is why your mobile wallet must host a user-friendly interface.