digital wallet business plan

How to Open a Digital Wallets Business in 9 Steps: Checklist

By alex ryzhkov, resources on digital wallets.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

As the digital finance landscape rapidly evolves, launching a digital wallets business has become a promising venture with the industry projected to grow exponentially. In 2023, the global digital wallet market size reached an impressive $1 trillion, demonstrating not only its current success but also its potential for future expansion. This blog post outlines the essential steps and a comprehensive digital wallet business checklist to help you start and scale your own digital wallet company, ensuring you grasp every opportunity in this booming sector.

• Analyze market needs.
• Design business model.
• Secure tech partners.
• Ensure legal compliance.
• Acquire funding.
• Develop product.
• Conduct beta tests.
• Plan marketing.
• Implement improvements.

9-Steps To Start a Business

Launching a digital wallets business involves several critical steps to ensure the viability and sustainability of your enterprise. Prior to starting your business, it is essential to carefully plan and execute a variety of strategic actions to set a strong foundation for your business's success.

Market Research

Embarking on the journey of launching a digital wallet business mandates a comprehensive approach to market research. This initial phase lays the groundwork for understanding the nuances of the market, tailoring your product to meet specific demands, and foreseeing potential challenges.

The aim of digital wallet market research is twofold: identifying your target audience and dissecting the competitive landscape. Recognizing who your users are—be it individuals, businesses, or a niche sector—enables precise customization of your digital wallet's features. Collaboration with digital payment platforms and ensuring the inclusion of desirable functionalities hinge on these insights.

Simultaneously, an analytical look at your competitors helps in benchmarking and positioning your digital wallet uniquely in the marketplace. It's not merely about acknowledging who your competitors are, but deeply understanding their offerings, strengths, and where they fall short. This insight catalyzes innovative solutions that can differentiate your wallet in a saturated market.

Key Tips for Effective Market Research

• Dive deep into user demographics and preferences to tailor your digital wallet's user experience design.
• Utilize SWOT analysis to ascertain strengths, weaknesses, opportunities, and threats in the current market environment.
• Engage with potential customers through surveys and focus groups to gather firsthand feedback about desired features and functionalities.

Moreover, analysis of digital payment regulations and compliance requirements should also be an integral part of your market research. Engaging with regulatory frameworks early on will guide the structuring of your operations to adhere to legal standards, thus avoiding future legal obstacles.

Ultimately, digital wallet market research is indispensable for crafting a strategic roadmap for your digital wallet business. It not only enhances your understanding of the market dynamics but also propels informed decision-making throughout the development process.

Business Model Development

Developing a robust business model is fundamental in launching a digital wallet business . Essential to this phase is outlining how the Digital Wallets will generate revenue, a critical component that attracts investors and guides operational strategies. Typically, revenue streams in a digital wallet business model may include subscription fees, transaction fees, and charges for premium features.

• Subscription Fees: You could offer tiered services, where basic features are free, but premium features, like higher transaction limits or international transfers, require a monthly fee.
• Transaction Fees: A small fee could be charged per transaction or a percentage of the transaction amount, which is common in digital payment solutions.
• Premium Features: Offering advanced features, such as increased security options or loyalty and rewards programs, can be another source of revenue. These features are typically available for a one-time fee or via a subscription upgrade.

Understanding digital wallet revenue streams is not just about selecting the types of fees to charge; it also involves pricing strategies that appeal to various user segments while maintaining a competitive edge in the market.

Key Tips for Developing Your Digital Wallet Business Model

• Analyze competitor pricing to ensure your fees are competitive yet profitable.
• Consider offering a 'freemium' model to attract users and convert them into paying customers through exceptional service and exclusive features.
• Keep an eye on digital payment compliance and regulations to avoid any potential legal challenges associated with fees.

Additionally, the scalability of your business model should be considered to adapt to increasing customer bases or to enter new markets. Exploring diverse digital wallet partnerships can enhance service offerings and improve market reach. Importantly, as you refine your business model, continuous engagement with customer feedback will guide necessary adjustments, ensuring the model remains viable and responsive to market needs.

In sum, a well-defined business model not only serves as the financial backbone of your Digital Wallets but also sharpens your competitive advantage and fosters sustainable growth. Implementation of the chosen revenue streams should be monitored regularly to optimize performance and adapt to changing market conditions.

Technology Partnerships

For those aspiring to excel in the digital wallets business, establishing robust technology partnerships is critical. These partnerships serve as the backbone of your operation, ensuring that the infrastructure is both secure and efficient—a determinant of success in the fintech sector. The focus should be on aligning with technology providers that not only offer advanced solutions but are also leaders in cybersecurity.

When you embark on forming these crucial partnerships, look for providers with proven track records in handling large-scale financial transactions. Their expertise in data protection and fraud prevention will significantly mitigate potential security risks to your digital wallet platform. Additionally, these collaborations can enhance the technological agility of your digital wallets, allowing for swift adoption of new features and services that meet evolving customer expectations.

Key Aspects to Consider When Selecting Technology Partners

• Scalability: Ensure that the technology stack offered by your partners can scale as your customer base grows and as the transaction volumes increase.
• Integration Capabilities: The ability to seamlessly integrate with existing and future payment platforms and banking APIs is crucial for a smooth user experience.
• Compliance Adherence: Choose partners who are up-to-date with digital payment compliance and digital payment regulations to avoid legal pitfalls.

Integration capabilities are particularly vital; they determine how well your digital wallet can communicate with other financial systems and technologies. This interconnectivity is essential for supporting a wide array of payment methods and currencies, which broadens your market reach and enhances user satisfaction.

Ultimately, the strength of your technology partnerships will influence the reliability, performance, and security of your digital wallet services. Prioritize these relationships as they are foundational to building a versatile and resilient digital wallet business.

Licensing & Compliance

Navigating the maze of digital payment compliance and licensing is a critical step for launching a digital wallets business. Every region has specific financial service regulations designed to protect users' data and ensure fair play within the market. Not only must your business obtain the necessary financial licenses, but adherence to data security standards such as PCI DSS is also indispensable.

Understanding digital payment regulations involves a deep dive into the legal frameworks that govern electronic transactions in your operational jurisdictions. For instance, in the United States, becoming compliant with the Payment Card Industry Data Security Standard (PCI DSS) is non-negotiable for handling credit card transactions safely. Similarly, other countries may have equivalent or even more stringent requirements.

Key Tips for Effective Licensing and Compliance:

• Start early: Begin the licensing application process as soon as possible, as this can be time-consuming and complex.
• Engage experts: Consider hiring legal advisors who specialize in digital wallet business licensing requirements and financial regulations.
• Stay updated: Regulations can change, so regularly review and update your compliance procedures to avoid any legal pitfalls.

The licensing phase also involves registering your digital wallet business with relevant financial authorities. This may include local financial watchdogs, national banks, or other regulatory bodies depending on your location and business model. The goal is to ensure that your business operates transparently and in accordance with the law, safeguarding both your users' interests and your company's integrity.

Not adhering to these requirements can result in costly penalties and damage to your business reputation, hence the importance of thorough preparation and continuous monitoring of compliance standards. Commit to maintaining high standards of security and accountability, and your digital wallet business will be well-positioned to earn trust and grow in a competitive digital finance environment.

Funding Acquisition

Funding Acquisition is a pivotal phase in the journey of launching a digital wallets business. Securing your initial funding sets the foundation for product development, beta testing , and early-stage operations. Given the competitive landscape, potential funders need to be convinced of both the viability and profitability of your digital wallet solution.

Approaching venture capital firms, angel investors, and even considering bank loans are common routes. Each option has distinct advantages and challenges, but the core requirement remains a compelling business plan that effectively outlines your digital wallet business model, expected revenue streams, and a clear path to profitability.

Key Tips for Effective Funding Acquisition

• Personalize your pitch: Tailor your presentations and pitches to reflect the interests and investment ethos of the potential funders. Highlight how your digital wallet solution aligns with their portfolio and past investments.
• Emphasize scalability: Demonstrate the scalability of your digital wallets business, focusing on how it can grow and expand to meet evolving digital payment needs and technologies.
• Showcase your team: Investors invest in people as much as ideas. Showcase the expertise and industry experience of your team to instill confidence in your capability to execute the business plan.

The initial funding phase often requires founders to delineate the operational, technical, and financial details of their digital wallet business. This includes, but is not limited to, digital payment compliance , technology partnerships, and user experience design insights. Investors are particularly keen on understanding how you plan to navigate digital payment regulations and integrate with existing digital payment platforms.

Bringing on investors who not only provide capital but can also add value through strategic advice and digital wallet partnerships is invaluable. Networking in fintech events, leveraging online platforms to connect with potential investors, and presenting at pitch days are practical steps in finding the right investors for your digital wallet startup.

Ultimately, the goal during the Funding Acquisition stage is to secure sufficient capital to move forward without compromising the strategic direction or operational autonomy of the digital wallet company. It's about finding the right partners who are aligned with your vision and are committed to the long-term success of the venture.

Product Development

Embarking on the product development phase in your journey of launching a digital wallet business demands a focused approach to creating a prototype that stands out. It's essential to incorporate unique features that set your digital wallet apart from others in the market. Implementing user-centered design principles can significantly enhance the overall user experience, making the wallet not only functional but also intuitive for end-users.

Digital Wallet prototype development should focus on achieving simplicity and security, two core aspects that users prioritize. Consider including innovative features such as biometric security measures, real-time transaction updates, and customizable interfaces. The ability to integrate smoothly with a wide range of existing digital payment platforms can also provide a critical competitive advantage.

Effective Strategies for Digital Wallet Prototype Development

• Involve potential users early: Engaging with your target audience during the early stages of development can provide invaluable insights into their needs and preferences, guiding your feature selection and interface design.
• Leverage Agile methodologies: Utilizing agile development processes allows for flexible, iterative testing and refinement of your digital wallet, ensuring that the final product is well-tuned to market requirements.
• Prioritize security: From the outset, integrate advanced security protocols, such as encryption and multi-factor authentication, to build trust and safeguard user data.

The integration of user-centered design principles is pivotal, facilitating not only aesthetic appeal but also functionality and ease of use. It's crucial that the design process is iterative, allowing for continual testing and refinement based on user feedback. This approach not only enhances the user experience but also contributes to a robust, market-ready product.

Remember, the success of the product will largely depend on its ability to meet user expectations while providing unique features that are not readily available in existing solutions. Thus, digital wallet prototype development should be approached with a keen attention to detail and a commitment to innovation, ensuring your digital wallet is both appealing and functional in a competitive market.

Beta Testing

Launching a beta version of your digital wallets platform is a pivotal step. This phase focuses on deploying the product to a meticulously selected group of users. It provides an invaluable opportunity to gather real-world feedback, which is essential in identifying bugs and gauging user interaction patterns. The insights gained here are critical for fine-tuning the digital wallet's features and functionality.

During beta testing, the primary aim is to simulate actual operating conditions for the digital wallet while monitoring how it performs in diverse scenarios. This approach helps in understanding how different users value various aspects of the digital wallet, from user interface design to transaction processing speeds.

Effective Strategies for Beta Testing Digital Wallets

• Recruit a diverse user base that reflects your anticipated customer demographic to ensure that the feedback encompasses wide-ranging user preferences and needs.
• Employ analytics tools to capture detailed user interactions, which can help trace any issues users encounter in real-time.
• Establish a structured feedback mechanism that encourages candid responses from beta testers, ensuring they provide actionable insights.

It is essential to prioritize the feedback gathered during this phase. Categorize issues by their severity and potential impact on user satisfaction. This allows your development team to address critical problems first, optimizing resource allocation and ensuring significant improvements in the digital wallet's performance.

Finally, the beta testing phase should not be viewed as a one-time task but rather an ongoing process that extends beyond the initial release. As part of continuous improvement in digital wallet services, incorporate regular updates and enhancements based on user feedback to stay relevant and competitive in the fast-evolving digital payments landscape.

Marketing Strategy

Embarking on the marketing strategy for your digital wallet business is pivotal to its success, focusing heavily on building brand awareness and conveying the unique advantages of your platform. A multifaceted approach will harness the power of digital marketing, forge strategic partnerships, and execute robust PR campaigns to ensure a comprehensive penetration into the market.

Initiate by developing a digital marketing plan that leverages SEO, PPC, and social media advertisements to target your ideal customer demographics. Engaging content and interactive tools on your website can help illustrate the ease and security of using your digital wallet, which are critical selling points for prospective users.

Essential Tips for Leveraging Partnerships:

• Identify potential partners who align with your brand values and have access to a substantial user base that could benefit from your digital wallets.
• Consider collaboration with financial education platforms to help demystify the advantages of digital wallets and embed your brand as a thought leader.
• Use co-branded marketing efforts to reach a broader audience and gain credibility through association.

To augment your market presence, a robust PR strategy should communicate the innovation and reliability of your digital wallet services. Press releases, interviews, and case studies can be powerful tools to generate buzz and attract coverage in financial and tech publications.

Ultimately, your marketing tactics should continuously evolve, adapting to new market trends and the preferences of your customers. This dynamic approach will not only keep your brand relevant but also drive sustained growth.

As digital wallet technology continues to evolve, staying ahead of trends and innovatively approaching marketing will keep your business at the forefront of this competitive industry. Engage deeply with your target customers through tailored messages, build meaningful partnerships, and keep your audience engaged with compelling narratives around the security and convenience your solution offers.

Continuous Improvement

In the rapidly evolving landscape of digital wallets, maintaining market relevance demands vigilant monitoring and iterative improvements. Once your digital wallet business is operational, the true challenge lies in sustaining its growth and adapting to ever-changing consumer demands and technological advancements. This essential phase goes beyond initial success, focusing deeply on refining your service to enhance user satisfaction and operational efficiency.

Start by establishing robust mechanisms to track the performance of your digital wallets. Utilize analytics tools to gather data on user engagement, transaction volumes, and feedback. This data serves as the foundation for understanding the strengths and weaknesses of your digital wallet offerings.

• Conduct regular user feedback sessions to gain insights directly from your customers, ensuring their voices guide your developmental roadmap.
• Monitor digital payment compliance and regulatory updates to ensure your digital wallet remains compliant with all legal standards.
• Plan for periodic updates, not just to fix bugs but to introduce innovative features that differentiate your digital wallet from competitors.

Equally important is the strategic partnership with technology providers to ensure that your infrastructure can support new features and handle scaling requirements as your user base grows. Continuous improvement in digital wallet services involves both the technological stack and the user experience design.

Pro Tips for Sustaining Innovation and Improvement

• Employ A/B testing to experiment with new features before a full-scale roll-out.
• Keep a close eye on emerging digital wallet technology trends and integrate them into your offering where relevant.
• Create a feedback loop with your development team to prioritize and implement changes efficiently.

Remember, the goal of continuous improvement in your digital wallets business is not only to fix what's broken but to foresee market shifts and be proactive in innovation. This proactive approach ensures long-term success and a competitive edge in the dynamic digital payments landscape.

Launching a digital wallet business requires a systematic approach to understanding market demands, forming strategic partnerships, and strictly adhering to regulatory standards. By following the nine essential steps outlined—from conducting thorough market research to engaging in continuous improvement—entrepreneurs can effectively set the foundation for a successful all-in-one digital wallet solution. This venture not only addresses current consumer needs but also adapts to emerging financial technologies and trends, ensuring long-term relevance and profitability in the dynamic digital payment landscape.

$169.00 $99.00 Get Template

Related Blogs

• KPI Metrics
• Running Expenses
• Startup Costs
• Pitch Deck Example
• Increasing Profitability
• Sales Strategy
• Rising Capital
• Valuing a Business
• Writing Business Plan
• Buy a Business
• How Much Makes
• Sell a Business
• How To Avoid Mistakes

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

• Mobile wallet
• Money transfer
• Payment acceptance
• Currency exchange
• Business ledger
• Ewallet development
• P2P payment app development
• Fintech software development
• Enterprises
• Payment Solution Provider (MENA)
• Digital wallet for MPAY
• Mobile money processing for Paywell
• Knowledge base

The Essential Things To Know Before Starting A Digital Wallet Business

The world is quickly embracing the digital age, and e-wallets are becoming an increasingly popular way to send and receive payments. They help users to store their money and other digital assets in a secure environment. E-wallets also enable customers to conduct financial transactions with ease and convenience.

Digital wallets have become increasingly popular in recent years, with more and more consumers adopting this payment method. The global mobile payment market size was valued at $1.48 trillion in 2019, and is projected to reach $12.06 trillion by 2027, growing at a CAGR of 30.1% from 2020 to 2027, according to Allied Market Research survey. 

Starting a digital wallet business can be a great way to open up new revenue opportunities and get benefits of these payment software. In this article, we’ll cover the main things to know before starting a digital wallet business.

Table of contents

What is a digital wallet?

A digital wallet business is an online platform that allows users to store and transfer digital assets such as money, cryptocurrency, and other digital assets. This type of business is becoming increasingly popular as more people embrace the digital age and its associated technologies.

Digital wallets are secure, convenient, and provide users with greater control over their finances. They also make it easier for businesses to accept payments and receive payments from customers. By starting a digital wallet business, you can tap into this growing market and provide users with a convenient, secure platform to store and manage their digital assets.

Check this article about  digital and mobile wallet use cases  to explore the opportunities for integrating e-wallet software into payment businesses.

Mobile wallet solution

Build your payment app on top faster and cheaper

Benefits of a digital wallet for business

Starting a digital wallet business offers a number of benefits. We highlight the main advantages e-wallet can offer for payment companies:

Convenience

Digital wallets provide a convenient and secure way for customers to make payments. Customers can easily store their payment information in their digital wallet and use it to make transactions without the need to carry cash or a physical card.

Increased sales

By offering digital wallet payments, businesses can attract new customers who prefer to pay digitally. Additionally, digital wallets can offer a more streamlined checkout experience, reducing the chances of cart abandonment and increasing sales.

Reduced fraud

Digital wallets use advanced security features, such as encryption and two-factor authentication, to protect user data and prevent fraud. This can reduce the risk of chargebacks and disputes, which can be costly for businesses.

Improved customer loyalty

Digital wallets can offer loyalty programs and rewards, which can incentivize customers to return and make repeat purchases. Additionally, businesses can use data from digital wallets to offer personalized promotions and discounts, which can further increase customer loyalty.

Read our article on FinTech architecture to explore key trends, challenges and solutions for financial software development.

Cost savings

Digital wallet transactions can be cheaper for businesses compared to traditional payment methods. For example, digital wallet transactions can have lower processing fees than credit card transactions.

Hybrid-cloud fintech platform

Accelerate software development with SDK.finance Platform

Improved data management

Digital wallets can provide businesses with valuable data on customer transactions and preferences, which can be used to improve marketing and sales strategies.

Expansion opportunities

Digital wallets can also be used to expand your business into other markets. For instance, if you offer a digital wallet service, you can use it to accept payments in different currencies, allowing you to reach a wider audience.

Overall, digital wallets offer a range of benefits for businesses. By adopting digital wallet payments, businesses can enhance the customer experience, increase sales, and reduce costs while improving security and data management.

Check this article to explore how Bacs payments help financial companies quickly and efficiently send or receive payments.

Things before starting a digital wallet business

Starting a digital wallet business can be a lucrative venture, but it requires careful planning and preparation. When you have already done market research and clarified the target audience, their preferences, and requirements, you are ready to start with your payment solution. Here are some things to consider before launching your digital wallet business:

Ensure regulatory compliance

Regulatory compliance is an essential aspect of any digital wallet company’s operations. First of all, digital wallet companies must comply with KYC and AML regulations to prevent money laundering and other financial crimes and verify the identity of its customers. Secondly, businesses that handle payment card data are required to comply with PCI DSS standards to protect against fraud and data breaches. Digital wallet companies also should comply with data privacy regulations, such as the EU’s General Data Protection Regulation (GDPR), to protect customer data.

Last and also important step is to comply with country-specific regulations, depending on where they operate. Regulatory compliance for the payment industry varies depending on the location of the business and the countries where it operates: 

• Digital wallet providers operating in the United States must comply with various regulations such as the Bank Secrecy Act (BSA), the USA PATRIOT Act, and the Dodd-Frank Act. 
• If your company operates in the European Union you must comply with the General Data Protection Regulation (GDPR), the Payment Services Directive 2 (PSD2), and the Anti-Money Laundering Directive (AMLD).
• Digital wallet providers must obtain a license from SAMA to operate in KSA. They must also comply with other relevant laws and regulations, such as the e-commerce law, the cybercrime law, and the personal data protection law.
• In the United Arab Emirates (UAE), regulatory compliance for digital wallets is overseen by the Central Bank of the UAE (CBUAE), which is responsible for regulating and supervising the financial sector in the country. The CBUAE has issued regulations and guidelines for digital wallets to ensure the safety and security of electronic payments and protect the rights of users.

Check this article to get more information about country-specific regulations in your region.

Technology requirements

The technology stack for developing an ewallet depends on the specific requirements of the project, so you need to determine the right software to build and operate a digital wallet platform, according to business and users needs. Consider the following technologies to develop an electronic payment solution

Front-end Development: The front-end of the ewallet can be developed using frameworks such as React Native, Flutter, or Ionic. These frameworks allow for the development of mobile apps that can be used on iOS and Android devices.

Back-end Development: The back-end of the ewallet can be developed using server-side programming languages such as Java, Python, or Node.js. You can use a web framework such as Spring Boot, Django, or Express.js to build the back-end.

Digital wallet solution

Affordable software to base a fintech product on

Database: You will need a database to store user data, transaction history, and other relevant information. Popular database choices for e-wallets include PostgreSQL, MySQL, or MongoDB.

APIs are also essential components of digital wallets. They help to integrate the wallet with third-party apps and services. For example, SDK.finance functionality lies in using its 400+ interactive API endpoints exposed as Open APIs (available via Swagger). They  help to facilitate integration with third party providers and services and assist in driving our customers’ products innovation.

Moreover, it is also important to consider a cloud-based infrastructure, as an ewallet requires a scalable and reliable infrastructure to handle a high volume of transactions. Cloud-based services such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP) can provide the perfect solution for an ewallet.

Read this article to get more information about developing a digital wallet.

Features implementation

The functionality of the virtual wallet depends on your business needs. You can offer the following features with the e-wallet for your customers: P2P transfers to allow users to send and receive money from others; include loyalty programs to boost users’ engagement with your brand, allowing them to earn points or rewards for every purchase they make using the digital wallet.

You can also provide account management to help users create and manage their digital wallet accounts, including adding or removing payment methods, viewing transaction history, and updating personal information. Offering budgeting tools, you allow them to track their spending, set spending limits, and receive alerts when they approach their limits. Moreover, it is possible to provide personalized offers and promotions to users based on their transaction history and preferences can help increase engagement and loyalty.

API-driven neobank software

Develop your payment app on top faster and cheaper

In addition, digital wallets should have strong security measures in place to protect user data and prevent fraud. This could include two-factor authentication, encryption, and fraud detection. 

Developing a digital wallet is a complex process that requires a team of experienced developers, designers, and project managers. Working with a reputable development firm can help ensure your digital wallet is developed to a high standard, meets user requirements, and provides a seamless user experience. Check  this article to explore the most common e-wallet use cases.

SDK.finance digital wallet solution

SDK.finance offers a white-label digital wallet platform that allows businesses to build a digital wallet product for their customers for storing and managing their money. This e-wallet software serves as a foundation to build a standalone payment product on top or add electronic asset accounting functionality to your existing one. 

Our team uses cutting-edge tech stack to provide the latest security standards in code development. Implemented API-first architecture helps to facilitate integration with third-party providers and services and assists in driving your banking or payment product innovation. SDK.finance solution is available  on premise or via hybrid cloud deployment, which features top-notch resilience, meets the strictest regulatory requirements, and enables the usage of our platform irrespective of location.

With SDK.finance digital wallet you can offer the following functionality: multicurrency accounts, bank and bill payments, internal P2P transfers, spending visualization, and currency exchange. The e-wallet solution is designed for businesses of all sizes in the financial industry, including banks, payment processors, and fintech startups. It is a flexible and customizable system that can be tailored to meet the specific needs of each business.

Check out the demo video of the SDK.finance Platform to see how you can manage currencies and digital assets, configure exchange rates, and monitor system accounts all within one system. The SDK.finance Platform is a FinTech multitool that helps businesses of all sizes to launch their financial and payment products in record time:

Starting a digital wallet business can be a great way to tap into the growing digital payments market. With the right software development partner and planning, you can start making money with your digital wallet business. Make sure to do your research, choose the right platform, and invest in the necessary services to ensure your success. SDK.finance digital wallet software solution can help you to launch your payment business faster and offer a highly scalable solution for the users. 

What are the benefits of digital wallets for businesses?

Digital wallets offer the following benefits for businesses: reduced fraud, increased sales, improves customer service satisfaction and loyalty, and seamless payment processing. These software programs also can improve data management and save costs by offering lower processing fees than traditional payment methods.

How to start a digital wallet business?

Starting a digital wallet business can be a lucrative venture, but it requires careful planning and preparation. When you have already done market research and clarified the target audience, preferences, and requirements, you are ready to start with your payment solution. Before starting a digital wallet company you need to consider the following things: regulatory compliance, technical requirements, and the functionality of the virtual wallet.

You may also like

Privacy overview.

How To Start A Digital Wallet Business

When it comes to createing a digital wallet app, you may find yourself in a place where you have to make some big decisions.

You may be asking yourself:

• What's the first step in establishing my business?
• How much will it cost to start my digital wallet app?
• How do I price my digital wallet app?
• How do I market my digital wallet app?
• ... so much more!

We walk you through all of the steps; from idea → starting → launching → growing → running your business.

The purpose of this guide is to act as an outline for the steps you'll need to take to get your business running successfully!

Create A Digital Wallet App ➜ avg revenue (monthly) $1.5M see all digital wallet apps ➜ starting costs $30.5K see all costs ➜ gross margin 23% time to build 240 days growth channels SEO business model Subscriptions best tools Twitter, Instagram, iCard time investment Full time pros & cons 40 Pros & Cons see all ➜ tips 1 Tips see all ➜

💡 Introduction To Createing A Digital Wallet App

Is createing a digital wallet app right for you.

There are many factors to consider when createing a digital wallet app.

We put together the main pros and cons for you here:

Pros of createing a digital wallet app

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Traffic to your website

A digital wallet app gives people a reason to visit your website and to keep coming back to you!

• Meaningful business connections

You never know who you will meet as a digital wallet app. This could be the start of an incredible business opportunity!

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

• Control of workload

With createing a digital wallet app, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

• Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

• Unlimited income potential

With createing a digital wallet app there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• Amazing perks and discounts

Working in the digital wallet app comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

• Predictable income stream

Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Simple business model

A digital wallet app has the advantage of a simple business model, which makes launching and building the business more seamless.

• Control your own destiny

Createing A Digital Wallet App allows you to control every aspect of your life and make your own dreams come true every day.

• Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

• You can work from anywhere!

Not only can you start your digital wallet app from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.

• Strong Demand & Relatively Recession Proof

The demand for digital wallet app is increasing year over year and the business is known to be relatively recession proof.

• You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

• You establish yourself as an expert

With createing a digital wallet app, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.

• Can build solid foundation of clients

It's unlikely you will have one-off customers as a digital wallet app. Typically, you have a solid foundation of clients that use your product and services regularly.

• Low maintenance customers

In this industry, customers are known to be very appreciative and low maintenance. This can help with your stress levels and allow you to focus on growing your business.

• Results and revenue happen quickly!

Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow all the steps to validate your idea before launch, you are likely to see quick results and ROI.

Cons of createing a digital wallet app

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Low margins

The gross margins for your digital wallet app are typically around 23%, which can make it more challenging to incur new expenses and maintain profitability.

• High employee turnover

In the digital wallet app, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

As a digital wallet app, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

• High overhead expenses

With createing a digital wallet app, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

• You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

• Time commitment

With createing a digital wallet app, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Difficult to build trust with your customer

With createing a digital wallet app, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

• Strict regulations

With any digital wallet app, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur.

• Complex development process.

The development process for a digital wallet app can be quite complex, which may cause delays and challenges when launching and growing your product.

• Complex maintenance

Your digital wallet app will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.

• Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

• You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

• Difficult to scale

With a digital wallet app, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.

• Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

• Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

• Technical issues can be frustrating

Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.

• More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

Big Players

• MetaMask (7.3K Alexa Ranking)
• Digital Wallet (21.5K Alexa Ranking)
• Coins.ph (21.7K Alexa Ranking)
• Exodus (22.5K Alexa Ranking)
• Theta Token (34.2K Alexa Ranking)

Small Players

• iCard - Revenue $1.5M/month
• Finvault - Revenue $220K/month

Search Interest

Let's take a look at the search trends for digital wallet over the last year:

How To Name Your Digital Wallet App

It's important to find a catchy name for your digital wallet app so that you can stand out in your space.

Here are some general tips to consider when naming your digital wallet app

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your digital wallet app so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your digital wallet app.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your digital wallet app:

• 1. DigiWallet check availability
• 2. Fast Cash check availability
• 3. Ezmoney check availability
• 4. Eezy Cash check availability
• 5. Digi Pay check availability
• 6. Smart Pocket check availability
• 7. Digi Pocket check availability
• 8. Cash Now check availability
• 9. Cash Easy check availability
• 10.Money Pouch check availability
• 11. Fast Dollar check availability
• 12. Easy Dollar check availability
• 13. Money Matters check availability
• 14. Cashoneer check availability
• 15. Pay Up check availability
• 16. Pay Easy check availability
• 17. Pay Fast check availability
• 18. Fast Pay check availability
• 19. Cash Up check availability
• 20. Cash Chill check availability
• 21. Pocket Money check availability
• 22. Easy Borrow check availability
• 23. Smart Money check availability
• 24. Smart Coin check availability
• 25. Fast Bills check availability
• 26. Easy Pay check availability
• 27. Easy Bills check availability
• 28. Fast Change check availability
• 29. Easy Change check availability
• 30. Change Now check availability
• 31. Money 4 U check availability
• 32. Money Pal check availability
• 33. Cash Buddy check availability
• 34. Wallet Share check availability
• 35. Digital Pocket check availability
• 36. Wallet Now check availability
• 37. Fast Cash check availability
• 38. Fast Money check availability
• 39. Super Cash check availability
• 40. Electric Money check availability
• 41. Coin Fast check availability
• 42. Wow Coin check availability
• 43. Snap Money check availability
• 44. Smart Cash check availability
• 45. Insta Cash check availability
• 46. Insta Money check availability
• 47. Fast Buck check availability
• 48. Coin Now check availability
• 49. Cash 4 Me check availability
• 50. Rapid Cash check availability
• 51. Rapid Pay check availability
• 52. Go Cash check availability
• 53. Go Pay check availability
• 54. Go Money check availability
• 55. Golden Coin check availability
• 56. Money Basket check availability
• 57. Golden Goose check availability
• 58. Magik Coin check availability
• 59. Alpha Pay check availability
• 60. Alpha Cash check availability
• 61. Value Coin check availability
• 62. Cash Dash check availability
• 63. Money Story check availability
• 64. Cash Flow check availability
• 65. Money Magnet check availability
• 66. Wallet 4 U check availability
• 67. UWallet check availability
• 68. Wallet-o-Clock check availability
• 69. Spendn'Save check availability
• 70. iFunds check availability
• 71. Cash Express check availability
• 72. Money Express check availability
• 73. Dollar Express check availability
• 74. Coin Express check availability
• 75. Cash Grab check availability
• The Automatic check availability
• Immense check availability
• The Disc Online check availability
• Uneconomic Electronic check availability
• The Capacious Money check availability
• Electronics Spot check availability
• The Facial Online check availability
• StolenWallet check availability
• Formidable Digital check availability
• Lacrimo Digitization check availability
• Being check availability
• Oro Electronics check availability
• Automated Spot check availability
• Own Pocket Co check availability
• Born Digitizing check availability
• The Beautiful check availability
• Briefcase Pro check availability
• Free Online check availability
• Battered Pouch Collective check availability
• Analog Trading Co check availability
• Mid Analog check availability
• The Processing check availability
• Computerized Trading Co check availability
• Quizzical Digital check availability
• Old Briefcase check availability
• Lost check availability
• Digital Pro check availability
• The Born check availability
• Inter Analogue check availability
• The Facio check availability
• The Hydraulic Opto check availability
• HumanElectronic check availability
• The Radio Computerised check availability
• Conditional Digital check availability
• Stained check availability
• Yellow Bag Collective check availability
• All Electronic Collective check availability
• Guide check availability
• The Facial Electronic check availability
• Digitizing Co check availability
• Mid check availability
• DentoDigital check availability
• Eia Electrons check availability
• Profit Wallet check availability
• The Pre Digital check availability
• Waterproof Wash Leather check availability

Read our full guide on naming your digital wallet app ➜

How To Create A Slogan For Your Digital Wallet App:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your digital wallet app:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

• Explain the target customer you are catering your services towards
• What problem do you solve?
• How do you make other people, clients, or your employer look good?
• Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your digital wallet app:

• Your money is secured with us
• Making digital transactions easy
• The best way to store money
• The digital wallet that cares
• The next big thing in digital money transfer
• Storing money at its finest
• Cash wallet on your computer
• Digital wallet just got even better
• The next big thing in the cash wallet industry
• Hassle-free transactions made possible
• Digital money transfers made even better
• Make your transactions quick and easy
• Virtual is the new normal
• Transact with peace of mind
• Your hard-earned money is safe with us
• We store money securely
• Money made even better
• All currencies accepted
• The new way of doing business
• Every transaction is special
• Your partner in success
• Cashless payments made possible
• We value safety and privacy
• The finest digital wallet that you can find
• Unleash the full potential of your transactions
• Best trust rating and satisfaction
• No loopholes, just security
• Make your online business successful
• Transferring money got more secured
• The new way of money transfer
• Your cash is safe with us
• The way to a safer business deals
• Cashless transaction is the new trend
• The next big thing in digital wallets
• An awesome cash wallet for you
• Do You Have The E Wallet Inside?
• Micro On Lines Are What We Do
• Wrapped Up With E Wallet.
• I Can't Believe It's Not Wallet.
• Digital Is Better Than Chocolate.
• Feel It - Digital!
• Digitals With Maxillofacial
• Wallet, To Hell With The Rest.
• You Too Can Have A Digital Like Mine.
• Our Digital Will Give You Softer Skin.
• You Too Can Have A E Wallet Like Mine.
• Get More From Life With Digital.
• Central Heating For Wallet.
• Palato Computerized, Facial Computer
• Endless Possibilities With Digital.
• Work Hard, Lose Harder
• E Wallet, How Did You Live Without It?
• All Digitiseds Are What We Do
• Processing Computings Are What We Do
• Think Different, Think E Wallet.
• Wallet, Where Success Is At Home.
• Work Hard, Forgotten Harder
• Kids Will Do Anything For Wallet.
• Own Pocketbook, Little Pocket
• You Can't Stop Digital.
• Spot Of The Electronic
• Non Information Are What We Do
• Rate Of The Paperless
• Work Hard, Slapping Harder
• Digital Is All Jacked Up.
• Digitals With Paralysi
• The Ideal E Wallet.
• Digital - One Name. One Legend.
• There's A Bit Of Wallet In All Of Us.
• Work Hard, Slap Harder
• Dento Stereo Systems Are What We Do

The Software Business Model

Tiered Pricing Model

You may want to consider having different pricing tiers to meet the needs of your customers.

With this model, there are typically 2 or more packages for a specific price that offer a fixed amount of features.

Each package should reflect the needs of the buyer persona - for example, a customer looking for a beginner package may have a very different use case than a customer looking for an enterprise package.

By offering different packages, you're able to target different audiences which will lead to increased conversions and revenue. Additionally, your chances of "upselling" existing customers are much higher as you have establisished trust with your customer and they're left wanting more once their use case evolves.

Per-User Model

Many digital wallet app businesses charge a fixed rate per user on the account (either monthly or yearly). This can be especially lucrative if you're targeting larger businesses where the user number will be much higher.

This model is not always preferred as it can be challenging to forecast revenue accurately when the user count within businesses is fluctuating constantly.

Flat Rate Model

If you decide to adopt a flat-rate model, this would mean that you offer only one price for every customer. All customers are treated equally and have access to the same amount of features.

This model is not as common as tiered pricing because it only meets the needs of one buyer persona and can limit growth and you're able to have multiple revenue streams.

Per Feature Model

This model charges customers based on the # of features they need. Customers add features "a-la-carte" which will determine the overall price of the product.

This can be a lucrative model, however, the number of different use-cases customers need can become overwhelming (making the sales process longer) and it can be challenging to find a price structure that works well.

The business model you choose depends entirely on your needs and goals as a company. To find what works well for you, you may want to consider testing several models and conducting market research to see what competition in the space is doing.

The Freemium Model

Offering free trials to your platform is a great way to gain exposure for your business and potentially get new customers!

Finding the right digital wallet app is a big deal for most people, so it can be important for customers to try a free version with limited features prior to making a big investment.

Once your customer reaches the limits of their free account, they're much more likely to invest in the premium version so they can gain access to all of the features your product offers.

There are a few different ways you can limit certain aspects of your product:

• Usage quotas : Storage limits or limiting the number of times they can utilize a feature
• Limited features : Only allowing your free user to utilize certain features vs all features - this is also a great way to upsell during the user's experience
• Limited support : Customer support can be time-consuming, by limiting the level of support to free users this is a great incentive for them to upgrade (and will save you a lot of time and money)!

Here's an example of SEO website, Sanity Check offering a free version to their website:

Learn more about starting a digital wallet app :

Where to start?

-> How much does it cost to start a digital wallet app? -> Pros and cons of a digital wallet app

Need inspiration?

-> Other digital wallet app success stories -> Examples of established digital wallet app -> Marketing ideas for a digital wallet app -> Digital wallet app slogans -> Digital wallet app names

Other resources

-> Digital wallet app tips

🎬 How To Create A Digital Wallet App

How Much Does It Cost To Create A Digital Wallet App

If you are planning to create a digital wallet app, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of createing a digital wallet app and outline the costs you should expect for each:

• The estimated minimum starting cost = $62
• The estimated maximum starting cost = $60,761

Raising Money For Your Digital Wallet App

Here are the most common ways to raise money for your digital wallet app:

Bootstrapping

You may not need funding for your digital wallet app.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your business without external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business :

• Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
• Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
• Consider starting a business that will generate immediate returns so you can put money back into the business
• Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
• Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

• An MVP (Minimal Viable Product)
• A founding team with all proper documents in place (articles of organization, business formation)
• A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

• Management team, their previous experience + current roles in the business
• Market challenge and solution
• Company financials - including a P&L statement, cash flow statement, and projections
• Company progress
• Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

What Skills Do I Need To Succeed In Createing A Digital Wallet App?

As a digital wallet app, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your digital wallet app from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

• Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
• Listening and following directions : When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
• Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to createing a digital wallet app:

• Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
• Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
• Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
• Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Business Savvy Skills

When createing a digital wallet app, there are a few fundamental business skills you will want to learn in order to be successful:

• Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
• Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
• Ability to understand the financials : You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
• Strategic Thinking : Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when createing a digital wallet app.

For a full list, check out this article here .

Design Skills

Whether you are the one designing the product or the decision-maker for the product, an eye for design is critical when createing a digital wallet app. Here's what this looks like:

• Creative Thinking - the ability to develop or design different products or ideas
• Visualization - being able to imagine or visualize how the product will look
• Articulation - the ability to communicate what the design will look like and how it will be executed
• Detail-oriented - paying close attention to all of the small pieces when designing or working on a project
• Some technical skills - knowledge of the design software you are using to create the product or build prototypes.

Other skills that may be valuable to have when createing a digital wallet app include digital marketing skills, branding experience, and basic business knowledge.

Coding Skills

Here are some critical skills you will need to start your digital wallet app:

• Language acquisition: Common languages include Java, Ruby, Python, HTML)
• Creative thinking: Ability to develop innovative solutions and think outside the box
• Analytical skills : Ability to troubleshoot issues quickly and efficiently
• Attention to detail: Precise and detailed in the approach so that little to no errors arise
• Calm & Collective: Critical that you are able to stay patient when challenges arise
• Communication skills: The ability to explain your approach in a clear and concise way that all team members can understand.

To see more skills and qualities people look for in a digital wallet app, check out this article .

Advice For Createing A Digital Wallet App

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for createing a digital wallet app:

Ouriel Ohayon, founder of ZenGo ($/month):

You will get so much value growing with a small startup, and develop critical skills to employ if and when you are ready to start a company of your own.

Read the full interview ➜

Write a Business Plan

Writing a business plan from the start is critical for the success of your digital wallet app.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

• Location - Is your bank close enough that you can easily make deposits or get cash?
• Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
• Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
• Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
• Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Digital Wallet App (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

• Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
• Consider the number of hours you are working weekly + the type of duties you are performing.
• Set your salary based on your industry-standard, location, and profits (or projected profits)
• Look at your P&L statement : Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
• Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article .

How To Price Your Digital Wallet

One of the most challenging aspects to createing a digital wallet app is determining how much to charge for your digital wallet.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your digital wallet, it's critical that you first identify all of your costs and consequently mark up your digital wallet so you can factor in a profit.

The actual cost of your digital wallet may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your digital wallet, you'll want to create goals for revenue + how much profit you want your digital wallet app to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your digital wallet is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your digital wallet fits best in the marketplace.

All of these factors play an equal part in pricing your digital wallet, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Gross Margin Calculator: How to Calculate The Gross Margin For Your Digital Wallet

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand what is considered a healthy gross margin for your digital wallet app.

Calculate your gross margin and profit margin here .

What Type Of Customers Will Buy Your Digital Wallet

It's important to first establish who you will be selling to, whether it's to businesses or consumers.

Typically, in this industry, products are sold to B2C markets (business-to-consumer).

Let's take a look at what this means for your digital wallet app:

B2C (or business to consumer) is a transaction where businesses sell their products or services to the consumer directly.

In this market, consumer behavior is the primary driver for your business decisions - so it's important that you truly identify who your customer is, and what their buyer habits are when building your product/service.

The advantage

B2C is that you are able to cast a very wide net when targeting your customers. Your product may interest a large number of consumers or a specific niche.

The disadvantage

B2C is that consumers hold all the power - so if your website is not the most user friendly, or does not rank in the top search results on Google, chances are, your customer is going to shop elsewhere.

When building your digital wallet app, it's critical that you hone in on who your target audience is, and why they need your product over your competition.

Here are some items to consider when identifying your buyer persona:

Building an MVP (Minimal Viable Product)

When building a digital wallet app, it's critical that you first validate your product/service rather than rushing to build it right away.

This could save you months, if not years of building the wrong product/service.

If you're hoping to decrease any sort of risk that comes with launching your digital wallet app, designing a prototype can be a great way to de-risk your situation.

The point of your digital wallet prototype is that it doesn't have to be perfect.

In the beginning stages, it doesn't matter how rough V1 of your prototype is, it's more important to just get started and you can always refine from there based on feedback from your network and most importantly your customers.

How To Build A MVP

Here are several different ways of building a prototype/MVP:

• Start by building a landing page to see if customers actually need your product and if they are willing to pay for it
• Build a very basic version of your idea and ask for immediate feedback from potential customers
• Present a problem and solution via Facebook/Instagram Ads and see what the response is like

Yavor Petrov, founder of iCard dives deep into the process of designing and prototyping their product:

Now, iCard is a digital wallet and we wanted to make it as feasible as possible - to look like a real wallet. The first designs included a leather wallet appearance with debit cards tucked into it.

Have a glance at this screen from approximately one and a half years ago:

The idea of iCard was to fit pretty much all your cards, so we needed to design a wallet that can hold all of that. The cards you see above are just a small number of what you can fit into iCard. You could scroll and rearrange them, which is especially valuable if you have stored all your discount and loyalty cards, or if you have 20 virtual cards.

Coming up with an idea is the easy part. Making it appealing, legal and trustworthy takes many long and sleepless nights.

Making the first product

Have you ever created a website? Your idea seems clear , it even got designed and now is in the process of being built. Then, you get a tiny new idea to tweak one part just a bit and make it better. All this can shift your production timeline drastically because even the slightest change can require a series of connected adjustments.

To avoid this, we decided to use agile methodology in building our systems and processes. Building something and testing it in the real world is the best way to see what we’ve been missing in the conceptualization phase.

To make payments easier and more affordable , we needed to just launch as soon as possible. Building onto our past experience in the payment industry, we created our first app that lets people use basic payment features such as IBAN account, debit card.

And licensing was not an issue, because we were already in the business of electronic money and payments.

So, we designed the wallet, built it in a couple of months and let it run on our proprietary infrastructure, while observing how the users react and interact with it.

People’s feedback was our number one driver for improvements. With time, a lot of additional product features came to fruition.

We still have the leather designs for our top fans. Just recently, we even launched the trendy “dark mode”:

How To Find The Right Developer For Your Digital Wallet App

If you (or others on your team) don't have the necessary coding/design skills to build the product on your own, finding the right developer for your digital wallet app is a critical piece to bringing your idea to life.

Prior to hiring someone, you'll want to:

• Have a very clear understanding of what your product (or MVP) will look like
• Understand what the details of the user experience will look like (pages, how users sign up, backend administrative details, billing, reports etc). It may help to draw out the prototype and UX experience on a design platform such as Sketch
• Understand what features you want to implement now and even those in the future
• Understand the costs and time associated with hiring a developer and set a budget (more on that below)

Here are some ways you can find a developer:

• Use your network or attend a conference!

Arielle Frank, founder of Clout Collective talks about her experiences and lessons learned when hiring a developer as a non-technical founder:

My first attempt to find a developer was a massive failure. I was basically screaming to be taken advantage of with my lack of technical knowledge and a heart full of hope. I signed an extremely unfavorable contract with a developer based in Morocco who claimed to offer “discounted” development services in exchange for equity in the company. By “discounted” I mean that it would cost only $40K to build the MVP. At the time I had no frame of reference for whether or not this was normal and justified it to myself.

Luckily, after a lot more internet sleuthing, I found my current developer, Adeva. Working with Adeva was the opposite experience of my initial encounter in every way. At $8K, Adeva’s quote for my MVP was literally 1/5th the cost of the original developer! I decided to save money on a front-end designer for V1 by using a template and designing things where I could in Figma.

I was forced to figure out many of the details and features of the platform upfront since Adeva couldn’t give me a quote without detailed user stories.

When building out the prospective features, I tried to focus on the end result and work backward from there.

For example, the end goal was for a content creator to be able to read a review and know whether or not they want to collaborate with a specific brand. I used this goal to inform the questions I collected for the reviews and the best way to display this info. During this phase, I also relied heavily on my beta testers for feedback about which info would be the most useful for them.

It’s tempting to add a bunch of cool, slick features when you’re building your product, but my brilliant mentor encouraged me to focus on doing one thing extremely well.

🚀 How To Launch Your Digital Wallet App

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Launch Strategies For Your Digital Wallet App

There are various different ways you can launch your digital wallet app successfully.

Here are a few different strategies to get customers excited about your digital wallet app.

• Build hype with a landing page : you can effectively do this through waiting lists, discounts, countdown timer etc
• Create a teaser video : even just a 30 second video is a great way to exposure for your digital wallet app, and possibly even go viral
• Reach out to influencers : The right influencer for your product has the ability to reach your audience with just one post, and because of their loyal following, this could lead to a big return for you.
• Get Press : Whether you plan a PR stunt or get exposure through a popular news outlet, this is a great way to attract initial customers
• Launch on popular sites : A great way to get buzz about your digital wallet app is to submit your launch to popular startup sites.

Here are a few popular sites to launch on:

• ProductHunt
• Hacker News

Learn more about how to launch your business successfully ➜ here

Yavor Petrov, founder of iCard dives deep into the process of launching the business:

We are a 100% digital company, meaning that we do not have client-facing offices. It’s the technology that helps us cater to users in a very cost-effective way, which essentially transfers the savings back to the client.

We are very focused on our online presence as well.

Take a look back at the first version of our website, dating back to 2010:

This is us in 2019:

This comparison uncovers a great deal of progress - it reveals how much experience we have gained and how much web technology has progressed.

Nowadays, our website is undergoing changes on a daily basis.

But, to us, the mobile app is even more important and it needs to behave perfectly and do the job right - every time.

The market fit

I’ve researched the market extensively and it’s quite amusing :)

We have a segment of users who choose our digital wallet for its safety features, only after they get “burned”.

Here is the concept: Your cash can get damaged or lost. You are so used to handling notes and coins, you don’t even realize the dangers are persistently following you in your daily life. Then you lose a wad of cash, or it gets stolen, and you realize it has been a mistake all along.

This is how people find our app - when looking for a solution to their current problem.

The solution for this segment of users is simple to explain:

• Lose your phone and your money stays safe - you have a debit card to use for payments.
• Lose your wallet with your bank cards - you still have your phone to Tap & Pay contactless or order money transfers.

We solve real problems, but to be successful, we need to present these problems in a rational way.

So, reaching the perfect potential user at the right time, with the right message, is a challenge.

Many localized markets in Europe behave in their own ways.

Incoming bank transfer fees are just another example of a problem that needs to be realized.

In our view, incoming money transfers to your classic bank account has barely any administrative expenses, yet some banks can charge up to $35 for that.

It’s now 25 years after PayPal was created to solve the problem of costly money sending and making it instant. Yet, PayPal could not really penetrate into the daily lives of people on our largely conservative continent.

Here is one more fact that we work to change:

More people search Google for “Cheap money transfers” than “Free money transfers” and when they find iCard, they are skeptical. It’s a mind-shift that we need to encourage and it takes a lot of trial and error in the process.

Launching, launching, launching

Nowadays, we are launching new app updates on a weekly basis, with new releases opening up new services or just perfecting the old app features.

For us, it’s always been very important to be agile and launch services quickly.

We’ve launched 2 other mobile apps, before iCard digital wallet, and many other B2B services. We are not the classic example of a garage-startup and all of that past experience helped us launch a totally awesome, rich and reliable service while financing it with own funds.

See what we launched in the last few months in this video:

https://youtu.be/-2E0_zTfZ5I

Measures are relative. You may think that 100,000 clients is a good number, but that’s far from true for someone like me - someone who aims to make the lives of millions of people better.

We’ve seen a steady growth in numbers since launch, mostly due to people referring others to connect in iCard and send/receive money instantly and for free.

Check how we are doing in the last 6 months:

The lessons we learned

Putting together an e-wallet app with an account and debit card was just the beginning.

Lesson 1: We have learned 1 very important lesson - we need to constantly talk to our users and optimize accordingly.

A change that we implemented after listening to client feedback, was the ability to try some of our app features for free, without going through the full account identity verification process.

Since then we have included:

• iCard Messenger
• QR code payments
• Worldwide mobile minutes top-up
• Loyalty cards
• Currency exchange

Lesson 2: We also learned that being mobile-first is a good market fit with the younger people.

So, we are going to very soon launch a full-blown web platform and the exquisite Visa Infinite debit card with higher limits to cater to a whole different market segment and gain even more trust.

We actually just launched the iCard Visa Infinite in our homebase market, so have a look at our teaser video:

https://youtu.be/1jurg3oePbI

Get Press Coverage For Your Digital Wallet App

The more buzz around your brand - the more the phones ring, the more traffic to your website, and the more customers as a result.

Here are a few ways you can get press for your business:

Press releases:

Press releases are a great way to share big announcements or news, but in order to get any traction, you'll need to find a way to make your press release stand out amongst others.

Try to convey a story that really matters, not just to you, but to the reporter and to their audience.

Here are some things to consider when submitting a press release:

• Craft a catchy subject (keep it short and sweet).
• Acknowledge the journalist's past work and interests - this is key!
• Include the main point of the story in the first paragraph, heck, even the first sentence. Reporters want to hear the juice first and foremost.
• Focus on the facts and try to limit the amount of jargon used.
• Pitch yourself! Help them put a face to the story.
• Make sure your topic is newsworthy. If it's not, find a way to!
• Try not to include any attachments of your release!

Email is one of the most effective and preferred way to send your press release, so as long as you keep your pitch brief, interesting and personalized (no cold emails), you should stand a chance!

Get Press Using HARO

HARO, otherwise known as "Help a Reporter Out" is an outlet for journalists to source upcoming stories and opportunities for media coverage.

The best part is, HARO is free to use! There are, of course, premium versions you can purchase, but the free version is still an accessible way to get press.

Once you set up an account, HARO essentially will email you based on stories (that are relevant to you) that need to be covered where you will then have a chance to essentially "bid on the story."

Here are some tips when crafting your pitch:

• Discuss your experience and expertise in the space. Make sure it's obvious why you're relevant to this story.
• Answer the question in 3-4 sentences. Try and be as direct as possible
• Offer to provide the reporter with more information and make sure to give them your contact info

Plan a Publicity Stunt

Planning a publicity stunt is an effective and quick way to raise awareness for your brand and gain some traction from the press.

If you're looking to plan a stunt, the objective should be to be bold and create something memorable

However, being bold has a fine line - it's important that you consider the timing of your stunt to ensure you don't come off insensitive or unethical. For example, timing may not be in your favor if you plan something during the general election, or in most recent cases, a global pandemic.

In order to measure the success of your stunt, it's important that you first determine your end goal, for example:

• Is the stunt aimed to raise money for your business or a particular organization?
• Is the stunt aimed to drive more traffic to your website?
• Is the stunt aimed to get more followers and engagement on Instagram?

Here are a few tips for creating a great publicity stunt:

• Research to ensure that there haven't been similar stunts done in the past by other businesses - this could easily turn off journalists and your audience.
• Make sure you can explain the stunt in one headline - this will help grab the media's attention. In other words, simplify!
• The stunt should be related to the product you are promoting. Even if the stunt is a success in terms of viewers, but it doesn't tie back to your original goal, then it's not useful.
• Keep the stunt visual with videos/images.
• Leverage the internet and social media platforms for your stunt by sharing your message across a variety of audiences. This will help with word of mouth and the overall success of your event.

To learn other strategies on how to get press, check out our full guide here .

🌱 How To Grow Your Digital Wallet App

Consider Working With Instagram Influencers

Partnering with like-minded influencers (within your industry) is one of the most effective ways to grow your social media organically.

Industry influencers already have an established and loyal following. With one post, your product immediately establishes a connection with a brand new audience. It's that powerful.

When finding influencers to promote your product, do your research and make sure that their following will actually be interested in your product.

It's easy to be blinded by any influencer with a huge following, but if those followers don't resonate with your product, there may not be any value there... so make sure you do your research!

Evan Marshall, founder of Plain Jane discusses how "micro-influencers" have impacted his business:

Influencer marketing has been huge for us. Our approach is pretty simple. We give out samples of our products and ask people to post about us on social media aka a micro-influencer strategy.

We really like this approach because we get authentic stories and content. We cannot really control the messaging so the product has to speak for itself. We don’t really take product photos at all. Our customers take the photos and we ask to reuse them.

With any influencer strategy, you have to be very sure you’re targeting the right people and engaging with them. You can make sure you’re targeting the right influencers by looking through their posts and then looking through the profiles of their engaged followers.

It takes more time per influencer but the payoff is certainly worth it. Make sure their followers look like your existing customers.

It takes a ton of time and work to grow a social media following this way but it’s worth it. Other accounts have tried to grow themselves through botting or other manipulations. As a CBD company, we didn’t want to give Instagram any reason to shutdown our account so we’ve done everything through content and real engagement. It’s not magic to make this happen. You just have to post consistently and then reply or like every single comment you get. It takes months but it works

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your digital wallet app.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen :

Things they do well:

• Showcase 5-star reviews from other customers
• Offer a small discount + free shipping
• Great design + clear call to actions!

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Here are some tips to consider:

• Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
• Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
• Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to digital wallet app.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

• Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
• Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
• Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
• Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
• LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

• Do I want to simply drive brand awareness?
• Do I want to drive users to my website to gather information?
• Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

• Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
• Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
• Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
• Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.

Host A Social Media Giveaway

People love free stuff and love competition. Giveaways and contests are a great way to create awareness for your brand, grow your email list, and eventually convert leads into customers.

If your goal is to gather email addresses, make sure the entry criteria is to "enter your email." You can do this by leading customers to your landing page where they can then enter their email to be in the giveaway.

One of the most important aspects of promoting a successful giveaway is having an amazing prize. The better the prize, the more engagement you'll get.

This doesn't necessarily mean choosing an iPad or an expensive/trendy watch, but instead a prize that is actually relevant to your brand/target audience.

Giveaway Example and Tips

Example from TJ Mapes, founder of RIPT Apparel

Our most recent successful giveaway was when we gave away a PS4 + the new Spiderman game. I hosted the giveaway on our site and then let our audience know about it via email/social channels.

Entrants earned different amounts of entries for entering in different ways (tongue twister!), for instance; enter via email, get 10 entries. Follow us on Facebook, get 5 entries. Subscribe on Messenger and get 25 entries .

I also built out a drip sequence in Klaviyo that contained four emails to encourage entrants to take more action, like referring friends and liking us on social.

Email #1: Thanks for entering!

Email #2: Explained how to earn bonus entries:

Email #3: About us

Email #4: Coupon for entering

This last email in the sequence just thanked them again for entering and also included a coupon to a specific (related) collection of designs with an expiration date on it to incentivize purchases.

PS4 Giveaway Results:

We ran it for 2 weeks and recorded results in a meticulous spreadsheet to analyze the data. Here are some of the highlights:

• Giveaway page pageviews - 67,355
• Total entrants - 26,137
• Conversion rate - 38.80%
• Total entrants in Klaviyo (not suppressed) - 24,515
• New emails acquired - 16,363
• Emails we already had - 7,521
• % of new emails - 66.75%
• Cost of item - $350
• Instagram visits - 10,618
• Instagram followers gained - 3,496 ( total followers lifted by 6.9% )
• Twitter followers gained - 4,194

Form partnerships for your digital wallet app

Starting a digital wallet app is all about building relationships and becoming an integral part of your community.

Many entrepreneurs make the mistake of thinking they can do everything on their own. In reality, other businesses (even your competition) and members of your community can be a huge piece of your growth strategy.

When forming any type of partnership, a lot of energy and time can go into this. To ensure it's worth your while, dive deep into the vetting process and ask yourself (and them) the following questions:

• What are your businesses values and priorities?
• Who are your customers? What matters most to them?
• In what ways can we both bring value to each others businesses? Cross promotions? Clout/credibility?
• Should we do a trial run first to make sure this partnership works out before finalizing an agreement?
• What will the agreement look like?

Once you have an idea as to what the ideal partnership agreement looks like, that's when the outreach begins (the hardest part)!

Here are some different ways you can meet other entrepreneurs and form partnerships:

• Simply talk to other people in the digital wallet app industry. You'd be surprised as to how willing other entrepreneurs are to share their knowledge with you
• Host an event: By inviting people to your event in your community and industry, you may be able to form partnerships and expand your clientele
• Join a facebook community: Nowadays, everything is online. A great way to meet other people is to become 'active' on a public forum or community
• Use other social networks such as LinkedIn or Twitter to aid your outreach. This can be a very powerful tool if used properly.

Forming partnerships and building relationships within your community can be a very valuable tool, but it's important that you do your due diligence and avoid going in blind to any sort of partnership. This can save you months, if not years of time.

Mike Aspinall, founder of The Crafty Gentlemen discusses how brand partnerships are the most important part of his growth strategy and revenue stream:

My main revenue stream is sponsored brand partnerships, whereby a company pays me a fee to feature their product within one of my blog posts.

Over the years, I’ve worked with some really cool brands – Etsy, Hobbycraft, Cricut, Pinterest, Gorilla Glue, Singer, Janome, Brother, Bosch, and lots more.

For a long time, I was hesitant to charge for my work – I was happy to work in exchange for products. But there came a point where I was being offered more work than I could have said yes to – something had to change. So I started to charge for partnerships. And brands agreed, no questions asked!

The last 6-12 months have been the most successful yet for my business. I’m making regular revenue through multiple streams, including sponsorships, media appearances, influencer work, and passive ad revenue. My website traffic is at an all-time high, and growing – as are my social media followings:

Build A Facebook Community

Building a community is a great way to grow your network and your business.

There are several different ways of building a community, one of the most effective (and simplest) ways is to build a Facebook group

Setting up the group page takes less than 10 minutes, and we've outlined ways the top 5 ways to create an engaging and successful group:

• Make the group exclusive. This may sound counter-intuitive, however, this ensures privacy and that the group will feel comfortable posting and engaging with members.
• Try to be warm and welcoming. A great way to do this is by having a "Member Monday" where you welcome new members and ask them to introduce themselves in the group
• Use polls/surveys. This is a great way to know your audience and see what people want more of in the group (more business tips, networking opportunities, etc).
• Include influential people & conduct AMA's (ask me anything). This is a great way to get members engaged
• Host an in-person (or virtual) event with members in the group. This will create stronger relationships and build a strong community.

Mike Doehla, founder of Stronger U, an online nutrition company noticed that his customers needed a little motivation and sense of community:

Most diets are lonely so we wanted to give support and a community.

I think many people fail diets because there is no one to talk to and no accountability.

You can by a book, or google a meal plan but who’s going to keep you on track? We will. The entire SU community.

We give our members access for life to our Facebook community filled with people around the world who are looking out for everyone’s success.

Most diets make up arbitrary rules and we thought they just didn’t make sense. Meal timing, Cutting carbs, butter in coffee, sugar being the devil? Ehh no need to overthink that stuff.

We’ll give you the science behind of what we do and show you what actually matters based on real research.

Luckily we have a PhD at our disposal to educate our staff and members so everyone is getting the most up to date information out there.

🏃🏼‍♀️ How To Run Your Digital Wallet App

How To Retain Customers For Your Digital Wallet App

Retaining customers is one of the most effective ways to grow your digital wallet app.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your digital wallet app:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Yavor Petrov, founder of iCard dives deep into the process of attracting and retaining customers:

It’s really intriguing playing around and testing different digital marketing tactics for improving our web presence.

What is the best form of Marketing? That’s happy clients referring a product.

But marketing on its own is not enough without a product worth being recommended.

By now, we’ve managed to create a super-rich app that fits within the needs and lifestyles of different types of users.

And it proves to be working.

Word of mouth for us is the best channel for attracting and activating users.

Retaining users

Here we go beyond marketing.

To keep a person happy, they need to get the job done right - to send the money easily or to make the payment with no friction.

Launching quickly and sorting any issues later may seem counterintuitive in the context of having a software product that does the job well to retain customers.

However, the missing piece of the puzzle is customer support .

I, personally, am more focused on the technical side of the business and I’m happy to work with great people around me, who handle customer concerns.

We go far and beyond expectations to resolve issues 24/7 … and the process involves a lot of explaining, guiding, comforting and assuring people that their money is safe and having an issue is our chance for improvement and getting closer and closer to serving a perfect app.

So, the people at our headquarters in Varna are vibrantly collaborating, effectively tackling problems and keeping users happy.

Here is what works really well

Challenging people, serving them with interactive web campaigns and giving as much personal attention as possible is key to success.

We test and launch different interactions, games and contest.

We ran a game called “iCard around the world”

It was run in social media and asked our users to take pictures of their card when visiting different landmarks, during holiday. Participants had to guess where the picture was taken for a chance of being selected to receive one of our limited edition NFC wearables for contactless payments. The game brought a lot of interest and revealed that iCard really does work anywhere!

Here are some of the game posts:

https://www.facebook.com/iCard.Digital.Wallet/photos/a.744673682398699/1093565794176151/?type=3&theater

https://www.facebook.com/iCard.Digital.Wallet/photos/a.744673682398699/1076284435904287/?type=3&theater

https://www.facebook.com/iCard.Digital.Wallet/photos/a.744673682398699/1065019170364147/?type=3&theater

We ran the referral campaign: “Keep tapping with friends”

We took advantage of the growing interest towards our NFC wearables and created a referral campaign and a challenge. Everyone who used the “Invite friends” option in the app, and 2 of their friends passed video identification, received an NFC wearable. Again - a great amount of interest and a lot of new clients.

This type of marketing works really well and we are even adjusting the dynamics right now to scale up the effort.

Here is how we welcomed participants:

Ratings work the best

One more thing that works really well for attracting users is our app presentation and rating in Google Play and App Store.

It is a combination of product, marketing and customer support that brings in user reviews and a score.

Right now, we are fluctuating between 4.4 and 4.6 Stars in Google Play.

Organic traffic is our number one traffic and download source , but getting there took us quite some time to prove we are worth it and get an excellent trust rating.

So, your focus, just like ours, should be on making clients happy .

And we keep pushing to do exactly this:

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Authenticity

As a brand, you want to deliver an experience that authentic, honest and transparent.

Don't make the mistake of giving your audience less credit than they deserve.

Be Authentic

If you go around chasing every trend and only focused on yourself and money, you’re going to lose very quickly.

There have been many times where we have been tempted to do this but stayed true.

Sure we sacrificed sales, but we kept our integrity, played the long game and people saw and appreciated that, and really began emotionally investing in the brand.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Word of Mouth

The most tried and true way to grow a digital wallet app is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

• Consumers trust word of mouth above all other forms of marketing
• 92% of consumers believe recommendations from friends and family over all forms of advertising
• 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

How To Crush The Sales Process For Your Digital Wallet App

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding , give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

Outsourcing

If you can afford to hire someone to help support your digital wallet app, outsourcing is a great way to save you time and energy.

Most importantly, outsourcing can help you focus on the core growth of your business, versus spending your time on day to day tasks that other people can do just as well!

If you do plan to outsource your work, it's important to be hyper-familiar with the actual work involved.

Why is it important to be hyper-familiar with the work?

• So you can understand how long it takes
• So you understand the full process, edge cases, things that can go wrong.
• So you can explain it in detail to your employee.
• So you can make sure it actually works (for example - how do you know cold email works for your business if you’re not on the ground floor trying it out?)
• Understanding the tasks at a deep level will save you a lot of time and money.

We put together the best resources on the internet to help you start your digital wallet app.

• Email tools such as MailChimp or SendGrid
• Social media tools such as Facebook , Instagram , Twitter , YouTube , LinkedIn , Buffer , Medium or Tiktok
• Advertising tools such as Facebook Ads , Instagram Ads , Google Adwords , Twitter Ads or LinkedIn Ads
• Reviews tools such as TrustSpot or Trustpilot
• Design tools such as Canva , Adobe Suite , Figma , Invision or Typeform
• Analytics tools such as Google Analytics
• Productivity tools such as Slack , Monday.com , MongoDB Cloud or ClickUp
• Customer service tools such as Zendesk or Buffer Reply
• Blog tools such as WordPress
• ** tools** such as Seed FS
• Freelance tools such as Fiverr
• Education tools such as Udemy or Coursera
• Seo tools such as Ahrefs
• Stock images tools such as Shutterstock
• Shipping tools such as TNT
• Payments tools such as iCard
• Podcast tools such as BuzzSprout
• Platform tools such as Canva or Figma
• How To Start A Digital Marketing Career

DIGITAL BUSINESS: Start a Digital Based Business via Aliexpress E-Commerce & Information Marketing: Jonathan Parker

Web Resources

• How To Start A Mobile Wallet Business In - Swarit Advisors
• How To Make A Mobile Wallet App And Get Your Benefits
• How To Build A Simple E-Wallet Like Go-Pay
• License To Operate Semi Closed Wallet

Case Studies

• How We Launched A $1.5MM/Month Digital Wallet and Financial Services Company
• On Disrupting Fintech & Building A $2.6M/Year Digital Wallet
• 1 Tips For Starting A Successful Digital Wallet App (2024) 1 of 8
• 250+ Unique Digital Wallet Business Slogans and Taglines 2 of 8
• 8 Digital Wallet App Success Stories [2024] 3 of 8
• 1,000+ Best Digital Wallet Business Names 4 of 8
• 88 Marketing Ideas For A Digital Wallet App (2024) 5 of 8
• 37 Trending Digital Wallet App Businesses [2024] 6 of 8
• 40 Pros & Cons Of Starting A Digital Wallet App (2024) 7 of 8
• How Much Does It Cost To Create A Digital Wallet App? (In 2024) 8 of 8

• 4,818 founder case studies
• Access to our founder directory
• Live events, courses and recordings
• 8,628 business ideas
• $1M in software savings

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.

Join our free newsletter to get unlimited access to all startup data. We just need your email:

Check your email

If there's a Starter Story account associated with that email you'll get an email with a link to automatically log in. The link will expire in 15 minutes.

Your existing password still works, should you want to log in with it later.

With Starter Story, you can see exactly how online businesses get to millions in revenue.

Dive into our database of 4,418 case studies & join our community of thousands of successful founders.

Join our free newsletter to get access now. We just need your email:

Delivering Success

As a market-leading mobile app and web development company, Nimble AppGenie is helping businesses around the world reach the success they desire.

• Our Process
• Become Partner
• Request A Quote

Bringing Ideas to Reality

Nimble AppGenie offers a range of mobile app, web, and software development services that help you bring your idea to reality.

Mobile App Development

• Android App Development
• iPhone App Development
• Flutter App Development
• Wearable App Development
• Progressive Web Apps Development
• React Native Development
• Hybrid App Development
• UI/UX Design
• Maintenance & Support
• MVP Development Company

Web Development

• PHP Development
• Codeigniter Development
• Laravel Development
• NodeJs Development
• AngularJs Development
• ReactJs Development
• Magento Development
• MEAN Stack Development
• CakePHP Development

Software Development

• Custom Software Development
• SAAS & Enterprise App Development
• CRM Development Solution
• CMS Development
• Venture Capital Development

Innovation Across Industries

Nimble AppGenie’s market-leading development services deliver tailor-cut, innovative, & stellar solutions across various industries.

• Banking, Finance & Insurance
• Fintech App Development
• eWallet App development
• Loan Lending App
• HealthCare App Development
• Fitness App Development
• Blockchain App Development
• Cryptocurrency App Development
• Events & Ticket App Development
• Education App Development
• Restaurant App Development
• Media & Entertainment App Development
• Dating App Development
• Social Media App Development
• Music Streaming App Development
• Video Streaming App Development
• Magazine & Newspaper App Development
• Artificial Intelligence App Development
• Tour & Travels App Development
• Fantasy App Development
• Political App Development
• On Demand App Development
• Grocery App Development
• Taxi Booking App Development
• Beauty Salon App Development
• Fuel Delivery App Development
• Job Portal App Development
• Car Wash App Development
• Laundary App Development
• Grooming App Development
• Logistics App Development
• Augmented Reality
• Virtual Reality
• Ecommerce App Development
• Service Marketplace App Development
• Automotives App Development
• E-Scooter Application Development
• Food Delivery App Development
• Real Estate App Development
• House Cleaning App Development
• AI Chatbot Development

Work With The Best

Hire experienced and creative web and mobile app developers who will help your business outgrow the competition.

Mobile App Developers

• Hire iPhone App Developer
• Hire Android App Developer
• Hire React Native Developer

Web Developers

• Hire Laravel Developer
• Hire Magento Developer
• Hire Node JS Developer
• Hire Angular JS Developer
• Hire Python Developer
• Hire PHP Developer
• Hire Software Developer UK

• Beauty Salon App Development Company

• Hire Mobile App Developer
• Hire Web Developer
• e wallet app development

How To Start An eWallet Business?

• Posted by Udai Singh Shekhawat
• 5th April 2024

Do you want to start an eWallet business?

With the global fintech boom, digital wallets have become a household name. Apps like PayPal, Venmo, and Cash are on everyone’s phone, almost removing the need for traditional wallets.

This isn’t just present convenience for users, but an opportunity to generate millions for investors.

And that’s what attracts people to start an eWallet business of their own.

This is where What, Why, and How come in. Much to your relief, we shall be taking you through this journey and discussing everything related to creating an eWallet business.

So with this being said, let’s get right into it:

Ever Growing Market for eWallet: Future of Payment

eWallet statistics show growth in the market like never before.

Billions of people across the globe are using digital wallets and fintech companies are generating unsizable wealth.

Here’s a sneak peek into the market:

• Statista studies show that while the global digital payments market was worth around $4 trillion in 2020, it is expected to exceed $10 trillion by 2026 .
• And by 2030, the market will reach well over $607.9 billion in the US .
• As per Juniper Research, while there were only 4 billion digital wallet users in 2022, it grew to 5.2 billion globally in 2026. Showcasing growth in 53%.
• More than 65% of US citizens have used digital wallets at least once in the past month , showing how much people love using these wallets.
• The biggest benefactors of the eWallet market are, retail and eCommerce. With a 30% global market share , they hold the largest market share, as Grandviewresearch tells us.
• Stats from back in 2022, shows us 32% of global PoS transactions were made via a digital wallet , making it the most popular method.

Understanding the eWallet Business Idea

An eWallet, digital wallet, or mobile wallet , is a digital solution that mimics the functionality of a physical wallet in the online space .

It allows users to store money, make transactions, and track payment activities through devices like smartphones or computers. This innovative payment method is gaining traction due to its convenience, speed, and enhanced security features.

For those in the digital payments sector, the burgeoning eWallet market offers ample opportunities.

Developing an eWallet app is not just about creating a platform for transactions but also integrating cutting-edge technologies to ensure user data protection and offer a seamless experience.

The essence of venturing into the eWallet business is to identify and fill gaps in the current market by understanding user needs. Whether it’s through unique functionalities, such as integrated budgeting tools or loyalty rewards, the aim is to provide a standout solution that resonates with target users.

As an eWallet app startup, focusing on key areas such as regulatory compliance, security, and user experience is crucial.

The objective is to develop not just an app, but a comprehensive financial tool that simplifies and secures digital transactions for users.

Why Start a Digital Wallet Business?

Starting a digital wallet business in today’s tech-driven era isn’t just a forward-thinking move; it’s a response to a clear and rapidly expanding demand.

With over 2.8 billion smartphone users globally and an increasing trend towards online transactions, the digital wallet market is not just growing; it’s thriving.

Here are some top reasons to invest app business :

1. Surging Market Growth

The market for the mobile wallet business is booming across the world.

The global digital wallet market, valued at approximately USD 1.04 trillion in 2019, is projected to reach USD 7.58 trillion by 2027 , growing at a CAGR of 28.2% from 2020 to 2027.

This exponential growth is a clear indicator of the burgeoning demand for digital payment solutions.

2. Unmatched Convenience

Digital wallets streamline mobile payments , making them faster, easier, and more convenient.

A study showed that 84% of consumers are more inclined to shop with retailers that offer their preferred payment method .

Thus, underscoring the importance of digital wallets in the current retail landscape.

3. Heightened Security

With cybercrime on the rise, ewallets offer a safer alternative through advanced security features like tokenization and biometrics .

Reports indicate that digital wallets can significantly reduce fraud, with a 67% decrease in fraud loss rate compared to traditional payment methods.

4. Diverse Revenue Opportunities

The ewallet ecosystem allows for various revenue models, including transaction fees, which are expected to contribute significantly to the market’s growth.

Merchant services and value-added services within digital wallets also present lucrative revenue streams.

5. Scalability and Innovation

The mobile wallet space is ripe for innovation, allowing businesses to introduce features like loyalty programs, financial management tools, and cross-border payments.

Such innovations not only enhance user engagement but also open doors to scaling your business across different regions and demographics.

6. Regulatory Tailwinds

With governments worldwide advocating for mobile payments to enhance financial inclusion and reduce reliance on cash, the regulatory environment is increasingly favorable for digital wallet businesses.

Initiatives like the European Union’s PSD2 regulation are aimed at fostering an open and secure digital payments ecosystem.

Starting an eWallet business today means tapping into a market that’s not only vast but also growing at an unprecedented pace.

By leveraging cutting-edge technology and focusing on delivering value to users, entrepreneurs in the digital wallet app development sector can build scalable, secure, and successful digital wallet solutions that meet the evolving needs of a global audience.

Speaking of which, let’s look at the things that you need to do before starting a digital wallet business.

Things to Do Before Starting a Digital Wallet Business

Before diving into the vibrant and competitive world of digital wallets, it’s crucial to lay a solid foundation.

Preparing meticulously can set your eWallet business apart and position it for success.\

Here’s what you need to do:

► Market Research and Analysis

The first step is to understand the eWallet landscape.

That’s where market research comes in.

Here, you need to analyze market trends, identify key players, and pinpoint your target audience. Look into demographic preferences, common pain points, and unmet needs.

Data-driven insights will inform your business strategy and product development.

► Define Your Value Proposition

This is the time to come up with USP (unique selling point)

What makes your digital wallet stand out?

Is it superior security features, user-friendly design, unique functionalities, or integration with various services?

Clearly defining your unique selling points (USPs) will help attract users and investors alike.

► Regulatory Compliance and Legal Framework

Navigating the complex fintech regulatory environment is critical.

Understand the legal requirements of your target markets, including licensing, data protection laws, and anti-money laundering (AML) regulations.

For this, you can also consult with legal experts or RegTech firms to ensure full compliance.

► Secure Funding

App development cost isn’t cheap.

If you are planning to start a business in eWallet market, you need funds. So, start by assessing the financial requirements to launch and scale your eWallet business.

Explore app funding options like venture capital, angel investors, crowdfunding, or bootstrapping.

A robust business plan and clear revenue model will be vital in securing investment.

► Build Strategic Partnerships

If you want to become the next big eWallet company, you need to forge alliances with financial institutions, payment processors, merchants, and technology providers.

Because partnerships can enhance your service offerings, expand your user base, and provide technological and infrastructural support.

► Technology Infrastructure

Decide on the technological backbone of your eWallet. Consider factors like scalability, security, and compatibility.

Whether you opt for blockchain, cloud services, or traditional databases, ensure your technology stack is robust and future-proof.

Also Read: Infrastructure, Complete Breakdown  

► User Security and Privacy

When speaking of digital wallet business, user security and privacy paramount.

That’s why before anything else, we implement advanced encryption, two-factor authentication, and other security measures.

Building a reputation for reliability and trust is essential in the financial services sector.

► Branding and Marketing Strategy

Develop a strong brand identity and a comprehensive marketing plan.

Your branding should resonate with your target audience, while your marketing strategy should leverage both digital and traditional channels to create awareness and engagement.

By meticulously addressing these preliminary steps, you’re not just preparing to launch a digital wallet business; you’re setting the stage for a sustainable and impactful venture in the fintech landscape.

Product: Steps To Create A Digital Wallet

With the preparations done, it’s time to focus on the product.

Now, we create an eWallet app .

Developing an app connects your business to billions of potential customers from across the world, opening doors to revenue in the millions.

Speaking of which, here’s how you do it:

Step 1: Define Your Product Vision

Start with a clear vision of what your eWallet will offer or what we call eWallet business idea .

This includes the core functionalities, target user base, and how it differentiates from existing eWallet businesses & solutions.

Your product vision will guide all subsequent development efforts.

Step 2: User-Centric Design

eWallet app’s design is crucial.

The success of your eWallet app hinges on its user experience (UX) and user interface (UI).

Therefore, design the application with the user in mind, focusing on simplicity, intuitiveness, and ease of use.

Conduct user research and usability testing to refine your design based on real feedback.

Step 3: Choose Your Technology Stack

It’s time to focus on eWallet’s tech stack.

Selecting the appropriate technologies for your eWallet application is very important. Reason being, it affects everything from development costs to performance.

For those who don’t know, a tech stack includes front-end and back-end development platforms, databases, and security protocols.

Consider future scalability and integration capabilities with other systems and services.

Step 4: Implement Robust Security Measures

eWallet security is non-negotiable in financial applications.

Incorporate advanced encryption, secure authentication methods, and fraud detection systems. Regular security audits and compliance with industry standards (like PCI DSS ) are crucial.

Step 5: Develop Core Features

Digital wallet’s feature can make the app or break it.

Therefore, it’s advised to focus on developing features that address your users’ primary needs.

This typically includes account registration, bank account linking, balance checks, peer-to-peer transfers, payment processing, and transaction history.

Step 6: Integrate Additional Services

Take your digital wallet product to the next level via integration .

To enhance value, integrate additional services like bill payments, mobile recharges, loyalty programs, and financial analytics.

These features can increase user engagement and set your eWallet apart.

Step 7: Testing and Quality Assurance

Rigorous testing is essential to ensure the reliability and performance of your eWallet app.

Conduct various tests, including functional testing, performance testing, security testing, and user acceptance testing (UAT).

Step 8: Launch Strategy

It’s time to launch the app.

Plan a phased rollout of your eWallet app, starting with a beta version to gather initial user feedback.

Use this feedback to make the necessary adjustments before a full-scale launch.

Step 9: Post-Launch Support and Updates

It’s time for app maintenance and support to kick in.

After launch, continuously monitor your app’s performance, address user queries, and fix any issues promptly.

Regular updates are vital to keep your app relevant and secure.

Step 10: Marketing and User Acquisition

A robust marketing strategy is essential to attract users to your eWallet.

Utilize digital marketing, social media, influencer partnerships, and PR campaigns to build awareness and drive adoption.

By following these steps, you can develop a digital wallet that not only meets the market demand but also offers a secure, user-friendly, and innovative solution to your target audience.

Lesser and Larger Challenges That You Might Face

Launching an eWallet business is exciting but not without its hurdles.

Let us tell you that there are a lot of challenges in eWallet app development .

Being aware of potential challenges, both minor and significant, can prepare you for a smoother path to success.

Here’s what you might encounter:

User Onboarding

Convincing users to try a new eWallet app and ensuring a seamless onboarding process can be tricky. Simplifying sign-up processes and providing clear, immediate value can help overcome initial resistance.

Integrations

Seamless integration with various payment gateways and financial institutions is crucial but can present technical and bureaucratic challenges. Prioritizing key integrations based on your target market can streamline this process.

Staying Updated with Tech

The rapid pace of technological advancements means continuously updating your app to keep it secure and functional, which requires ongoing investment and effort.

Regulatory Compliance

Navigating the complex landscape of financial regulations and ensuring compliance can be daunting. This includes meeting KYC, AML, and other financial service standards, which vary by region and require significant legal expertise and resources.

Security Threats

As a financial service, eWallets are prime targets for cyberattacks. Implementing and maintaining state-of-the-art security measures to protect user data and funds is a significant challenge but non-negotiable.

Market Competition

The eWallet space is crowded with established players and new entrants vying for market share. Differentiating your service with unique features, exceptional user experience, and strategic marketing is crucial to stand out.

User Trust and Adoption

Building trust among users to switch from traditional payment methods to your digital wallet requires demonstrating tangible benefits, robust security, and reliability. User education and positive user experience are key to fostering trust and adoption.

Scaling the Business

As your user base grows, scaling operations, customer service, and infrastructure while maintaining service quality and security can be challenging. Strategic planning and scalable solutions are essential for managing growth effectively.

Top eWallet Businesses for Inspiration

The market is filled with super famous eWallet apps , generating billions in revenue for their businesses.

When you want to truly learn how to start an eWallet business, you learn from the best.

That’s why in this section of the blog, we shall be going to the top digital wallet and what makes them stand out of the rest.

These are, as mentioned below:

One of the pioneers in digital payments, PayPal has evolved from a simple payment processor to a comprehensive financial services platform.

It stands out for its ease of use, widespread acceptance, and robust security measures.

PayPal’s success lies in its ability to adapt and expand its services, including peer-to-peer transfers, online shopping, and business accounts.

As the leading digital wallet in China, Alipay is a prime example of a super-app that integrates payments, investments, loans, and insurance services into a single platform.

Its success is attributed to its seamless integration with a wide range of services, from online shopping platforms to brick-and-mortar stores, making it an indispensable tool for millions of users.

Popular among younger demographics, Venmo has made peer-to-peer transactions social and convenient.

Its user-friendly interface and social feed, where transactions can be shared and commented on, have fostered a strong community feel, making it more than just a payment app.

With this inspiration, you can create your own app like Venmo .

4. Google Pay

Leveraging Google’s ecosystem, Google Pay offers a seamless payment experience across online, in-app, and in-store purchases.

Its integration with other Google services, such as Gmail and Google Assistant, provides a cohesive user experience, making it easy for users to adopt and use regularly.

5. Apple Pay

Known for its emphasis on security and privacy, Apple Pay has set the standard for NFC-based payments .

Its seamless integration with Apple devices and the convenience of paying with a glance or a fingerprint have made it a popular choice among iOS users.

That’s the reason so many people want to create an app like Apple Pay .

6. WeChat Pay

WeChat Pay demonstrates the power of integrating digital wallet functionality within a social network.

This integration has enabled WeChat Pay to become a part of daily life for its users, facilitating everything from utility payments to in-store purchases.

7. Cash App

Want to develop an app like Cash ? Well, you must first understand what makes it stand out.

Square’s Cash App has made financial transactions straightforward and accessible, with features like direct deposits, stock investments, and Bitcoin trading.

Its innovative approach to financial services, catering to both individuals and businesses, showcases the potential for digital wallets to transcend traditional banking.

• Cost To Start An eWallet Business

Starting an eWallet business involves various financial considerations, from initial development costs to ongoing operational expenses.

The cost to develop an eWallet app ranges from $25,000 to $100,000.

However, the total cost can vary significantly based on the scale, features, and market you’re targeting.

Here’s a breakdown to give you an idea of the financial commitments involved:

For a more detailed cost breakdown, you must consult an app development company.

Speaking of cost, let’s some how you can generate this investment back, multiple folds in the section below.

Here’s How Your eWallet Business Can Make Its First Million: Monetization Strategies

Achieving the first million in revenue is a significant milestone for any eWallet business.

This goal is attainable by implementing effective monetization strategies tailored to your market and customer base.

Below, we explore several proven methods to help your eWallet venture reach this critical financial threshold.

Transaction Fees

Charging a small fee for transactions processed through your eWallet can accumulate substantial revenue. This could be a percentage of the transaction amount or a fixed fee. To remain competitive, ensure your fee structure is transparent and provides value for the services offered.

Merchant Services

Partnering with merchants to facilitate transactions can open a revenue stream through service fees. Offering merchants tools for transaction management, customer insights, and loyalty programs can justify these fees and encourage adoption.

Also Read: Merchant Service Provider

Premium Features

Offer basic eWallet functionalities for free while charging for premium features. These could include higher transaction limits, enhanced security features, or advanced financial management tools. This strategy can attract a broad user base while generating revenue from those seeking advanced capabilities.

Subscription Model

A subscription model offers users enhanced services, such as zero transaction fees, priority customer support, or exclusive deals, for a recurring fee. This can ensure steady revenue and user engagement.

Interest on Stored Funds

If regulatory conditions permit, earning interest on the aggregate funds stored in users’ eWallets can be a significant revenue source. This requires careful management and transparency to maintain user trust.

Cross-Selling Financial Products

Leverage your user base to offer related financial products such as loans, insurance, or investment opportunities. Collaborating with financial institutions can provide commissions or shared revenue from these products.

Advertising

Displaying targeted ads within your eWallet app can generate advertising revenue. Ensure that ads are relevant and non-intrusive to maintain a positive user experience.

Data Analytics

Anonymized user data can be valuable for market research and targeted advertising. Selling insights derived from transaction patterns and user behavior, while respecting privacy laws and user consent, can be a lucrative revenue stream.

White Label Solutions

Offer your eWallet platform as a white-label solution to other businesses. This allows you to leverage your technology and infrastructure to generate revenue without the direct cost of acquiring end-users.

Foreign Exchange Services

For eWallets facilitating cross-border transactions, offering competitive foreign exchange rates can be a source of revenue. Transparently displaying exchange rates and fees can attract users who regularly transact in multiple currencies.

Implementing these monetization strategies requires a careful balance between generating revenue and providing value to your users.

It’s crucial to continually assess the market, listen to user feedback, and adapt your strategies to ensure your eWallet business not only reaches but surpasses the first million in revenue.

Nimble AppGenie, Your eWallet Business Partner

We have got you covered.

Nimble AppGenie is a market leading eWallet app development company . We have helped more than 700 clients across the globe convert their ideas to reality.

Boasting 98% client satisfaction, we know what it takes to create the next best app for your business.

It’s high time to hire an app developer and turn your idea into a business product.

Starting a eWallet business in today’s digital age offers a lucrative opportunity given the market’s rapid growth and technological advancements. By understanding market dynamics, ensuring regulatory compliance, and focusing on innovative, user-centered solutions, entrepreneurs can navigate this competitive space successfully. Partnering with experienced developers like Nimble AppGenie can further enhance your journey towards creating a secure, user-friendly, and profitable eWallet app.

Q1: What is driving the growth of the eWallet market?

A1: The eWallet market is driven by the global increase in smartphone usage, a shift towards cashless transactions, and the demand for more secure and convenient payment methods. Statista predicts the digital payments market will exceed $10 trillion by 2026.

Q2: Why are eWallets considered the future of payments?

A2: eWallets offer enhanced security features, such as tokenization and biometrics, making them safer than traditional payment methods. With a 67% decrease in fraud loss rate compared to conventional payments, eWallets represent a more secure future for transactions.

Q3: What are the primary benefits of starting a digital wallet business?

A3: Starting a digital wallet business offers potential for substantial growth, access to diverse revenue streams, and the opportunity to innovate in a tech-driven market. Additionally, the supportive regulatory environment and the global trend towards financial inclusion make it a timely venture.

Q4: What are the essential steps to start an eWallet business?

A4: Key steps include conducting thorough market research, defining a unique value proposition, ensuring regulatory compliance, securing funding, building strategic partnerships, and focusing on a robust technology infrastructure.

Q5: How much does it cost to start an eWallet business?

A5: Initial costs can range from market research and business planning ($5,000 – $20,000) to technology and infrastructure development ($50,000 – $150,000+). Additional expenses include legal compliance, partnerships, marketing, and operational costs.

Q6: What are some successful eWallet businesses that can serve as inspiration?

A6: Industry leaders like PayPal, Alipay, Venmo, Google Pay, and Apple Pay have set high standards in terms of user experience, security, and market penetration. These companies offer valuable insights into successful strategies and innovations in the eWallet space.

Q7: How can an eWallet business generate its first million in revenue?

A7: Strategies include charging transaction fees, offering merchant services, providing premium features, earning interest on stored funds, cross-selling financial products, displaying ads, selling data analytics, adopting a subscription model, providing white-label solutions, and offering foreign exchange services.

Q8: What makes Nimble AppGenie a suitable partner for eWallet business development?

A8: Nimble AppGenie brings expertise in eWallet app development, offering tailored solutions that align with your business goals. Their focus on innovation, user experience, and regulatory compliance makes them a valuable partner in achieving success in the eWallet industry.

Udai Singh is a senior content writer with over 6 years of experience in creating content for FinTech, eWallet, EdTech, and App Development. He is an expert in simplifying complex concepts and creating engaging content that resonates with the audience.

• creating an eWallet business
• eWallet Business Can Make Its First Million
• eWallet Business Idea
• Launching an eWallet business
• Start An eWallet Business
• Starting A Digital Wallet Business
• Starting an eWallet business
• Steps To start A Digital Wallet Business
• want to start an eWallet business
• Why Start a Digital Wallet Business

Table of Contents

A Complete Mobile App Maintenance Checklist

Explore the best features and cost to develop an app like waze, no comments.

Comments are closed.

Inquiry Now

Still not sure if we’re a good fit for your project.

If you are still not sure if we can bring your ideas to reality, feel free to reach out to us. You can book a free consulting session with us where we can discuss the possibilities for your next project. Let’s talk.

Get Insight On Latest Industrial Trends & More. Download Now !

Well Written Blogs & E-Books With All Necessary Information

Bring Your App Idea to Life.

Partner with seasoned experts to transform your vision into a seamless, innovative app. Let's start your journey today!

Let's start your journey today!

Projects Completed

Clients Globally

Client Retention

Years of Experience

Get A Quote

• Electronic Funds Transfer
• Card Issuing Solutions
• On Demand Card Printing Solutions
• Visa Direct
• Bill Payments Platform
• Identity Solutions
• Loan Management
• Loan Origination
• Virtual Wallet Products
• Development
• Payment Processing
• Tip Disbursement
• Rent Collection
• Insurance Payments
• Rideshare & Delivery Payments
• Commission Payment
• Disaster Relief Distribution
• Subscription & Membership Platforms
• API Documentation
• Cryptocurrency Services
• Request a Demo

Your Guide to Digital Wallets for Your Business

Over the past few years – and noticeably during the COVID-19 pandemic – digital wallets (also known as   virtual wallets ) have become mainstream. 

As stated by   Square’s report , the use of “cashless payments” in Canada grew from 9% to 48%, 6% to 36% in Australia, 10% to 60% in Great Britain and 8% to 31% in the United States.

TechRadar   also dropped some interesting figures, stating that “Statistics show that in 2017, more than 4.1bn people all around the world were using digital payments. Since then, the figure jumped 25%, reaching 5.2bn.” 

Furthermore, it is expected to reach “6.1bn by 2023, or almost 50% more compared to 2017 figures.”

Digital wallets were a big factor in that rise. 

Let’s read why that was the case below. 

Your Guide to Digital Wallets for Your Company

What is a Digital Wallet? 

The name itself says it all: digital wallets are a digital version of your financial accounts that are easily accessible online or through your smartphone device. They provide the ability to ultimately turn your smartphone into a wallet. 

The most common off-the-shelf digital wallets include Apple Pay, Google Pay, and Samsung Pay, with PayPal and Venmo being the next most common options.  

Using Pateno’s unique API technology, websites and mobile applications can also build digital wallets right into their platform for their customer base to use. 

How Does a Digital Wallet Work? 

Pretty simple, which is why it’s such a popular choice for consumers. 

First, you need to create an account that links to your financial accounts – aka credit or debit card or directly link to your bank account – and verify it with your bank or card provider. Once the verification is complete, you can start using the digital wallet to make payments in stores or online.

Just like you would ‘tap’ your card, you would ‘tap’ or hover your smartphone device over the payment unit to make the purchase. The purchase is confirmed by either entering a password, Touch ID (fingerprint) or Face ID. 

The Pros & Cons:

Every service has both advantages and disadvantages. Digital wallets are the same. Let’s take a look at them below: 

The Good: 

• Simple to adopt, use and manage
• Reduces the need to carry around physical wallets 
• Time-saving checkout process
• Customers and businesses can easily track payments 
• Money is removed and placed in the customers’ and merchant’s accounts instantly 
• Encrypted credit and debit cards and banking details help keep them secure 

The Bad: 

• Not all merchants accept digital payments (but they should – read more below!) 
• Some digital wallets are dependent on a specific device or brand 
• If there is a breach of security, it can be costly 

What Does the Rise of Digital Wallets Mean for Businesses?   

Simple: if businesses do not adapt to the times and maximize the potential of digital wallets, they stand to lose a lot. 

Customers, both present and future, will most likely be turned off working with your business if their preferred payment methods are not met. And since digital wallets are fast becoming the main way to pay, it highlights the importance of adapting to this new-age system. 

Need more convincing? Here are some of the key benefits for your business if you adopt digital wallet payments: 

• Increase the payment conversion rate – Digital wallets reduce this process to a single click or tap, increasing conversions at checkout. 
• Ease and comfort for customers – Customers will enjoy shopping on your platform or at your store if they know payments can be simplified. This results in increased loyalty and retention. 
• More payment options mean more customers – The wider your payments field, the more customers you’ll be able to appeal to. That means more customers paying for your goods or services.
• Extra level of security for your customers – The heavily encrypted and tokenized system of digital wallets means that customers will feel safe paying for your products.  
• Easily stores data and records – You can easily keep track of all payments and cash flow, helping you manage your accounting. 
• Reduces costs and resources – The simplicity of the system will enable reduced costs and overall increased efficiency.
• Streamline reconciliation processes – Digital wallets effectively centralize finances and simplify the traditional banking process. 

The results are instant: businesses that have adopted digital wallets have experienced a dramatic increase in sales and profits while streamlining resources and accounting. It’s the ultimate   business payment solution , and it’s time to get your business up to date with   virtual wallets . 

Pateno can help with that. 

Pateno is the only business payment solution you will ever need. Our innovative payment solutions ensure a more streamlined, secure and flexible way to transfer money. Via our API technology, you can initiate payments from existing web pages, portals, and apps, scaling your capabilities as your industry changes. From tip disbursement to loan management payments, our highly intuitive and simple-to-use system can be easily integrated, instantly enhancing and streamlining your money transfers.  Contact our sales representative to learn more today .