The global mobile wallet app market is growing rapidly and is expected to continue to grow in the coming years. With the rise of digital payments and increasing use of mobile devices, there is a high demand for mobile wallet apps. According to a recent market research, the global mobile wallet app market was valued at $1.06 billion in 2020 and is expected to reach $4.91 billion by 2026, growing at a CAGR of 31.4% between 2021 and 2026. The growth of the market is driven by several factors, including popularity of mobile devices, adoption of digital payments, and awareness of the benefits of mobile wallets.
In addition, the COVID -19 pandemic has accelerated the shift towards contactless and digital payments, further driving the growth of the mobile wallet app market. The rise of e-commerce and popularity of mobile payment methods such as QR code-based payments and NFC payments are also contributing to the growth of the market. Overall, the global mobile wallet apps market is poised for significant growth in the coming years and offers a promising opportunity for players in the mobile payments industry.
Table of contents
What are the different types of mobile wallets?
There are several types of mobile wallets, including:
| Digital wallets | These allow users to store their credit or debit card information, as well as loyalty cards and other types of digital information, on their mobile devices. Examples include Apple Pay, Google Pay, and Samsung Pay. |
| Peer-to-peer (P2P) payment apps | These allow users to send and receive money directly from one another using their mobile devices. Examples include Venmo, PayPal, and Zelle. |
| Mobile banking apps | These software systems allow users to access their bank accounts and perform transactions, such as check balances, pay bills, and transfer money, directly from their mobile devices. |
| Retail store mobile wallets | These allow users to store loyalty card information, coupons, and other types of information from specific retail stores on their mobile devices. |
| Cryptocurrency wallets | These allow users to store and manage their cryptocurrency holdings, such as Bitcoin and Ethereum, on their mobile devices. |
Overall, the type of mobile wallet a person uses will depend on their individual needs and preferences, as well as the type of transactions they need to perform.
What are the must-have features of a viable digital wallet in 2024?
Nowadays, users and especially the young, digitally raised generations expect the best experience when it comes to their financial lives. Some of them have forgotten about traditional physical wallets and use smartphones to process payments faster. For this reason, customers are looking for cutting-edge, highly secure financial solutions that make payments as easy as possible.
Banks, financial firms, telecom providers and e-commerce companies can no longer afford to ignore the mobile financial services revolution, especially mobile wallet capabilities. They also need to be more innovative than ever to offer outstanding mobile wallet features that ensure not only high security but also a great customer experience.
Here are some of the must-have features of a future-ready digital wallet in 2024:
Enhanced security
Mobile wallets are generally considered a more secure option than physical debit or credit cards because of their powerful encryption. However, many people are still concerned about the security of digital wallets, with 93% of respondents citing fear of hacking as the main reason holding them back from further use. To ensure security, digital wallets rely on proven security measures such as encryption and tokenization that protect user data from being accessed by unauthorized parties. In this regard, security should be the top priority for any digital wallet. This can be achieved through features such as biometric authentication, encryption of sensitive data, and multi-factor authentication. Read this article to get more information about creating a secure digital wallet.
Support for multiple currencies
A mobile wallet that can store multiple currencies, including cryptocurrencies and fiat currencies, is more versatile and convenient for users. Virtual wallets are more convenient for users because they allow transferring payments and funds to different currency accounts in a single application, without the need to maintain a separate account for each international currency.
Decentralized ID (DID) integration
Decentralized Identity (DID) is a concept where individuals gain control over their digital identity through wallets. DID Integration with mobile wallets allows users to store their digital identity and credentials securely and encrypted. By integrating decentralized identity solutions, users have more control over their personal data and have a single identity point for multiple services.
Seamless transactions
The digital wallet should allow users to send and receive payments easily and instantly, with low transaction fees. Tips to improve seamless payments for e-commerce businesses include offering multiple payment options, streamlining the payment process, and providing a frictionless mobile experience. In the future, AI advisors, digital IDs, and biometrics will be integrated into wallets to enable more seamless ID verification, checkout, access, and travel experience. In addition, features such as ease of use and frictionless transactions can enhance the customer experience with virtual wallets.
DeFi integration
Digital wallets should have built-in integration with decentralized financial (DeFi) platforms and protocols that allow users to access a wide range of financial services such as lending, borrowing, and trading. Transactions can be conducted and processed via private keys, and DeFi wallets can be integrated with web3 wallets for smartphone access.
Personalized insights and analytics
A digital wallet that provides users with insights and analytics on their spending habits and investment performance is a valuable tool for managing their financial portfolios.
Mobile wallets can provide businesses with valuable insights into customer behavior, including purchase history and spending patterns. Banks are introducing personalized insights and customized app dashboards for online and mobile banking users to display tailored insights for each app user.
These are some of the key features that a viable digital wallet should have in 2024. However, the specific features will depend on the wallet’s target audience and goals.
Things to consider before starting a mobile wallet app
Starting a mobile wallet app requires careful planning and execution to succeed in a competitive market. By considering essential factors, you can set your mobile wallet app on the path to success. However, it’s important to remain flexible and adapt to changes in the market and technology. Here are some important things to consider before launching a mobile wallet app:
Regulatory requirements
Consider the laws and regulations related to mobile wallets in your target market. Here are some of the regulatory requirements for mobile wallets:
- Know Your Customer (KYC) Requirements: Mobile wallet providers must comply with KYC requirements to verify the identity of their users. This helps prevent fraud and money laundering.
- Data Protection: Mobile wallet providers must have measures in place to protect the personal and financial data of their users. This includes data encryption and regular security audits.
- Payment Card Industry Data Security Standards (PCI DSS): Mobile wallet providers that accept payment card transactions must comply with PCI DSS requirements, which are designed to protect cardholder data and prevent fraud.
- Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Requirements: Mobile wallet providers must have measures in place to prevent money laundering and the financing of terrorism.
- Consumer Protection: Mobile wallet providers must provide clear and concise information about their services, fees, and terms and conditions. They must also have a complaints procedure in place to deal with customer complaints and disputes.
- Interoperability: Some regulatory bodies may require mobile wallet providers to make their services interoperable with other payment systems to ensure that consumers have a choice of payment options.
The specific regulatory requirements for mobile wallets may vary depending on the country or region where the service is offered. It is important for mobile wallet providers to stay up to date with the latest regulatory developments and comply with all relevant requirements to ensure the security and reliability of their services. Read this article to find information about starting a mobile wallet.
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More infoPayment integration
Payment integration for mobile wallets refers to the process of connecting mobile wallets to payment systems, such as credit cards, debit cards, bank accounts, or other payment networks, so that users can make purchases or transfer funds using their mobile devices. Here are some common payment integrations for mobile wallets:
- Card-based payments: Mobile wallets can integrate with credit and debit card networks, such as Visa or Mastercard, allowing users to make payments at merchants that accept card payments. To enable this integration, mobile wallets must comply with payment industry security standards, such as the Payment Card Industry Data Security Standard (PCI DSS).
- Bank transfers: Mobile wallets can be integrated with bank accounts, allowing users to transfer funds between accounts using their mobile devices. This integration requires the mobile wallet to comply with bank regulations and security standards.
- Mobile carrier billing: Mobile wallets can be integrated with mobile network operators, allowing users to charge purchases to their mobile phone bill. This integration is popular in emerging markets where credit card penetration is low.
- Digital wallets: Mobile wallets can be integrated with other digital wallets, such as PayPal or Alipay, allowing users to transfer funds between accounts or make payments using their preferred digital wallet.
- QR code payments: Mobile wallets can be integrated with QR code payment systems, such as WeChat Pay or Paytm, allowing users to make payments by scanning a QR code at the merchant’s point of sale.
To implement payment integrations, mobile wallet providers need to have the appropriate technical infrastructure, security measures, and partnerships with payment service providers or financial institutions. It is important for mobile wallet providers to ensure that payment integrations are secure, reliable, and user-friendly to provide a seamless payment experience for their users.
Partnership with software providers
Developing a mobile wallet requires significant effort and a professional team, but you can find a software partner to save time and speed up the process. Build partnerships with businesses, merchants, and other relevant organizations to increase the reach and usage of your mobile wallet. There are many software providers that offer mobile wallet solutions, each with their own features and capabilities.
Partnering with a mobile wallet provider can bring numerous benefits to your business, especially if you operate in a retail or e-commerce sector. Here are some potential advantages of such a partnership: improved convenience for customers, increased customer loyalty and a high level of data protection.
Check this article to get more information about leading e-wallet companies.
When considering a partnership with a mobile wallet provider, be sure to choose one that is widely accepted and has a strong reputation for security and reliability. It’s also important to ensure that the integration process is smooth and seamless, so that your customers can enjoy a hassle-free payment experience.
Mobile wallet software solution by SDK.finance
SDK.finance white-label digital mobile wallet software can help to develop your mobile wallet application. Our fintech system empowers you to build an advanced application to cater for your customers’ financial needs, thanks to its unparalleled flexibility and cutting edge technology stack.
Thanks to cutting-edge tech stack, you can provide a wide range of functionality for your customers. You can also easily implement additional features into your application. SDK.finance mobile wallet app software platform offers the following functionality for businesses:
| Feature | SDK.finance digital wallet platform |
| Currencies management | Control of the exchange rate |
| Contracts (pricing plans) management | You can combine charges and limits in a “contract” or create a set of rates for clients |
| Transaction fees and limits management | Set up commission types: flat fee, %-based, combined (flat fee & %-based) |
| Roles and permissions management | User creation, role and status management, back-office user log review |
| Transaction history | Review all transactions of the customer in all statuses |
| CRM & customer support | Control customer profile information and status management, provide standard KYC management |
Conclusion
Overall, the convenience, security, and wide acceptance of mobile wallets have contributed to their growing popularity in recent years. As more and more consumers adopt this technology, it is likely that mobile wallets will become an increasingly important part of the payments landscape.
If you are going to launch the e-wallet solution, SDK.finance payment software can help you start the financial business faster.
FAQ
What is a mobile wallet?
A mobile wallet is a digital application that allows users to store, manage, and transact various forms of digital payments using a mobile device such as a smartphone or tablet. It enables users to make purchases, transfer money, pay bills, and access other financial services.
A mobile wallet typically stores payment information such as credit or debit card details, bank account information, or digital currencies like Bitcoin or Ethereum. Once the payment information is saved in the mobile wallet, the user can easily make transactions without having to enter their payment information repeatedly.
Why are mobile wallets extremely popular?
The popularity of mobile wallets has been driven by a number of factors. One of the main reasons is the convenience they offer. With a mobile wallet, users can pay for goods and services with just a few taps on their mobile device. This eliminates the need to carry cash or cards, which can be lost or stolen.
Mobile wallets are also more secure than traditional payment methods. They use encryption and other security measures to protect users' payment information. Additionally, mobile wallets often require a PIN or other form of authentication to complete a transaction, which adds an extra layer of security.
What are the must-have features of a mobile wallet in 2023?
Mobile wallets can also provide additional features such as loyalty programs, discounts, and coupons, making them a convenient and popular alternative to traditional payment methods.
In 2024 mobile wallets also must provide enhanced secure and seamless transactions. These software may also offer insights and analytics for users' spending habits for managing their financial accounts, and provide businesses with valuable insights into customer behavior.
