Opportunities and Challenges for eWallet App

Mobile Phones & tablets have become an integral part of our everyday life. We use our smartphones for informational updates, research, shopping, connecting with friends/relatives, transactions, and almost about everything else! If so, then why rely on traditional wallets, credits, and debit cards for operations? As more and more people rely on the convenience to make their transactions, it is clear that mobile wallets are steadily witnessing popularity by facilitating transactions at your fingertips. Recent studies show that there has been a significant rise in the usage of mobile wallet apps. Mobile payment services, namely Amazon pay, Apple pay, Android pay, Walmart pay and, Wechat pay, have been successful due to factors such as security, user-friendly interface, and more. However, there is several challenges faced with the integration of mobile wallet in phones, which needs to overcome.

What are the Challenges?

• Lesser Awareness Many consumers still lack confidence in adopting mobile wallet because they are not sure about the security. We need to impart proper knowledge about the benefits of mobile wallets over debit and credit cards usage.
• Regulatory Compliance Any online mobile payment services need to abide by legal regulations, entailing financial and consumer-based services. It becomes challenging for new players to invest in new markets.
• Rewards Credit and Debit card users receive various coupons, bonuses, and discounts. Introducing rewards offer can allure customers to boost the usage of your mobile wallets.
• Security and Fraud Risks Vulnerabilities, malware attacks, hacking, and more risks associated with contactless payment are the main reasons for consumers’ reluctance in adopting mobile wallets. Making the entire system secure with the technology will help prevent potential threats.

What are the Opportunities?

• Smartphone Users At least one out of every two people own a smartphone. According to the recent forecast, Smartphones users globally will reach 2.89 billion in 2020. As more number of people are anticipated to be the owner of smartphones, so will be the volume of mobile wallet users for various transactions.
• Easy Transactions Rural areas and Semi-urban areas have a significant impact on the overall development of a country. Unfortunately, most people do not have access to banks in remote areas, which makes money transaction difficult. Mobile wallets can enable them to create a bank account to perform operations, eliminating the need to physically going to the bank branch by ensuring utmost transparency. The rise in the number of mobile and internet users in rural areas creates an opportunity for a secure transaction with a digital payment solution over a particular time.
• Loyalty Accelerates Payment Loyalty programs prove to be a significant driver in mobile wallet adoption. The secret key for companies to have more engagement is by introducing and offering loyalty programs, coupons, gift cards, and promotions within mobile wallets.
• Online Banking Services It is of no wonder that more banks are offering mobile banking services to their customers for convenience. These services are used to transfer money, view balance, recent transactions summary, and more. This service acts as a catalyst to increase digital payment and go cashless, which in turn facilitates more use of mobile wallets.

In a nutshell, the era of a cashless future is shaping around the increasing use of mobile wallet apps. Hence, eWallet app development is the need of time to make your consumers relish the experience of convenience.