Gone are the days when you had to carry a fat, heavy wallet in your pocket. Mobile Wallets have rapidly become a preferred choice, especially for those who are constantly on the go. With the widespread use and launch of various mobile wallet platforms, one can pay for almost any product or service and transfer money with this technology. From paying for your morning cup of coffee to booking tickets for your next vacation, it makes it easy to get things done in both big and small ways.
As mobile wallets have revolutionized the way we use our money. No matter what we buy, a payment wallet is handy in the modern day and age. This blog will discuss the emergence of mobile wallets, popularity, and important things to consider while creating a future-ready mobile wallet platform.
The Emergence of Mobile Wallets and the Key Reasons Why it is Gaining Popularity
The covid-19 pandemic has changed the payment landscape forever with mobile wallets. It has shifted towards contactless and digital payment, driving the growth of the payment app globally. Being a popular payment method, such as Google Pay, Apple Pay is embraced across the globe by consumers and businesses to generate revenue and increase transaction volume. Moreover, flexibility, convenience, security, and ease to use are the key reasons it is gaining popularity.
The digital payment industry is changing fast as new players push to offer mobile money solutions to merchants and consumers. It makes it easy to store your credit cards, rewards cards, gift cards, and more in one place without carrying other physical cards.
Mobile payment solutions are growing in popularity, and the technology behind them continues to advance. There are many reasons why people are moving away from traditional payment methods towards digital, including faster checkouts and increased security with cards that never leave your pocket.
Read more about the Top 5 Digital Wallet Trends for 2023
What is a Mobile Wallet Platform?
A mobile wallet is an application installed on a mobile device, such as a smartphone or tablet, that allows you to store your money digitally without needing cash or a physical wallet. It allows you to link information like credit card numbers and bank account details, enabling you to use these payment options to make online purchases, pay bills, and even send and receive money. You can also track your monthly expenditure and recharge your DTH, mobile, and data packs. These types of wallets offer consumers ease and convenience.
It is categorized into four main segments: open, closed, semi-closed, and semi-open wallets. Each has different functions, such as
- Open mobile wallets are issued by banks for purchasing goods and services and transferring and withdrawing money. Examples of mobile money wallets are PayPal and Vodafone M-Pesa.
- A semi-open mobile wallet is a digital wallet that allows users to store and use their financial assets for transactions within a closed network of merchants or service providers.
- Semi-closed mobile wallets let you make payments to merchants. For example, you can receive money in semi-closed wallets in your bank account but cannot withdraw it as cash. Examples of wallets are Paytm, Freecharge, and Mobikwik.
- A closed mobile wallet is designed for use within a specific closed network of merchants or service providers. Unlike semi-open or semi-closed mobile wallets, closed wallets do not allow users to withdraw cash or transfer funds to other users outside the network.
Reasons Why Businesses Should Have a Mobile Wallet Platform
As we have understood what payment application is, let’s see how it has impacted the business world. How their utilities are changing the landscape of payments, and how it helps businesses to manage and organize funds.
Cashless transactions at the tap of the button
It helps customers go cashless and cardless, as there is no need to carry money. There is no chance of losing the card or cash while traveling, and it is more convenient too.
Safe and Seamless
It is becoming a fast and convenient payment mechanism with growing times. It is simple to use, and there is no need to carry cash or a card as one might have a chance of losing it. With low transaction fees, it allows users to send and receive payments quickly and instantly. A seamless payment experience can improve the customer experience with virtual wallets by providing more payment options, streamlining the payment process, and providing a frictionless mobile experience. So, it's wise to embrace payment wallet as it is secure because they use only encrypted data to keep you worried about being misused.
Fast and streamlined payment
No matter what you want to purchase, be it groceries or clothing, mobile wallet transactions are much faster than credit cards or cash. You no longer have to wait for your card to get swiped or count the amount in your pocket. With the app, you only need to 'tap and pay.’ Moreover, you can make online and offline payments with a single mobile wallet app.
Multiple payment methods
Another valuable advantage is storing multiple card numbers and detailed account info in one app and choosing whatever payment mechanism one wants. Customers and store owners add, edit, and select various subscription payment methods. For example, the shopper can use a combination of any cards such as credit, debit, gift, cash, and invoices. If any payment has been rejected, the pending payment status is changed.
Key Features to Consider While Creating a Future-Ready Mobile Wallet Platform
Nowadays, users like the young generation want to experience the best when it comes to their financial lives. They are keen to use smartphones for a faster payment process. This is why customers seek cutting-edge, highly secure financial solutions. Let’s have a look at the features to be considered:
Increase Security
It is considered a more secure option rather than debit and credit cards because of their powerful encryption. It can be secured with plenty of robust technologies, such as passwords, tokenization, biometrics, security questions, point-to-point encryption, out-of-band authentication, and one-time password (OTP) via SMS.
Addition and optimization of new services
One can manage day-to-day business transactions and track progress with mobile money solutions. With a dashboard, you can monitor your business performance and ensure it meets your expectations. You can also optimize your business by analyzing data regularly to find ways to improve it further. It will help you simultaneously optimize your business operations and reduce unnecessary complications.
Similarly, personal financial management or personal finance is managing your money to meet your personal goals and save for the future. This includes how much money you have and what to do with it, managing debt and creating an emergency fund, saving for retirement, and how to prepare for unexpected expenses such as car repairs or medical costs. It can also help you how to leave when you can no longer work.
Decentralized ID (DID) integration
Integrating decentralized identity solutions gives users more control over their personal data and a single identity point for multiple services. By allowing users to store their digital identities and credentials securely on a mobile wallet, the service becomes a quick and easy way to access services without storing multiple passwords or usernames.
Merchant Payments via Contactless Technologies (NFC or QR code Scanning)
Contactless payments are becoming increasingly popular, especially with the advent of mobile devices. NFC (Near Field Communication) and QR code technology provide users a secure payment between POS devices and smartphones.
NFC (Near Field Communication) is a contactless remote technology that works within a close distance (up to 10 cm). QR code is short for Quick Response code and is similar to a barcode. The user can quickly scan the QR code via the camera on a smartphone. The smartphone interprets the barcode, and a related application or website opens.
Conclusion
Mobile wallet platforms are advancing technological innovation to create what consumers want regarding apps and platforms that offer convenience and security with their purchases. It is a way to enhance convenience, security, and experience on the go. For businesses, they help streamline processes while also increasing sales. They also provide user-friendly mobile wallet solutions that can be adopted anytime and anywhere.
MobiFin is a digital wallet solutions provider with extensive industry knowledge and experience. For over a decade, we have enabled businesses worldwide to keep up with technological advancements and enter new markets seamlessly.
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