As part of this decade’s quick evolution towards digital finance, including digital wallet development, consumers are expecting the seamless ability to buy anything from anywhere without needing to carry around cash. More than 60% of the world’s population is even expected to use digital wallets by 2026, meaning that people are shying away from traditional finance options with lighting speed.
If you haven’t already, now is the moment for you and your business to start mapping out the best entrance into the e-wallet ecosystem. It’s not only proving to be hugely popular with both consumers and merchants but also looks increasingly clear to be the future of digital banking globally.
Our digital finance experts put together this core strategy toolkit to guide your digital wallet app innovation. Let’s jump in.
Four strategies for digital wallet development
While the COVID-19 pandemic has propelled the shift to all things digital, superior security and design coupled with smartphone accessibility have bolstered the rise of digital wallet technology over the past decade. As you begin your e-wallet journey, these are the four top pillars to consider:
- Learn about regulations your digital wallet technology must follow. First and foremost, it’s vital to understand and prepare for the regulatory environment in which you plan to operate. Whether operating in emerging market and developing economies or advanced economies, or both, there are different regulatory requirements for non-banks and third-party providers—with e-money issuance found to be “subject to the most intensive” regulation. Global studies on digital payment service regulations, like the one hyperlinked by the Financial Services Institute, is an excellent launch pad. However, once you’ve identified your market, it’s time to start diving in to more country-specific policies.
- Customer-centric app development is essential. Without a user-focused approach, any digital product development is likely to be unsuccessful. Most e-wallets and mobile payment platforms provide a treasure chest of valuable data, and this should be utilized to regularly understand consumer behavior, their niche needs, and how they use your solution. With three industry-leading experts, Star’s Shine podcast goes in-depth on why digital wallets offer innovative companies the best opportunity to develop an app that connects all the available about a customer’s preferences and needs. Furthermore, these can include a number of options, from special promotions and offers to loyalty programs, to keep users engaged.
- Top-notch transparency and security standards. Establishing trust is critically important in FinTech, which of course includes digital wallets. Customers’ top concern is the safety of their account details, so all transactions should always be secured and pose the absolute minimum risk. From a legal perspective, it’s essential to keep up with Anti Money Laundering (AML) and Know Your Customer (KYC) requirements for your digital wallet technology on a country-by-country basis. For customers, clear data usage policies, biometrics and other security tools help to build these trust foundations. In a separate Shine podcast episode, experts from Star, Onfido and Paidy dive into how product design can solidify user trust in FinTech.
- Collaborate with a digital wallet app development company. Last but not least, these projects often demand outside help from experienced FinTech consulting firms. As you perform due diligence during your search, make sure to go with an industry leader that provides end-to-end services from strategy and design to engineering and implementation. It’s important to identify a partner that has a proven track record with digital wallets and one that can transform your concept into a user-friendly, interactive layout that customers want to engage on a daily basis.
Launch your digital wallet with speed
These four steps mark just the beginning of any digital wallet product journey. Learn more about the many holistic and professional technology consulting services out there, and get a strong foundation for your product strategy today.