digital wallet business plan

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 Advertising 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 Open check availability
• The Oro check availability
• The Non Online check availability
• The Soft check availability
• Bit check availability
• The Nalog check availability
• OptoElectronic check availability
• Visible Electronics Collective check availability
• The Photoelectronic check availability
• Mid Electronics check availability
• The Beautiful check availability
• The Photography check availability
• Ionic Computerization check availability
• The Photoelectronic Electronics check availability
• Eem Electrons check availability
• Routine check availability
• Greasy check availability
• Enormous Briefcase check availability
• Product Electronic check availability
• The Hydraulic Opto check availability
• The Capacious Money check availability
• OpticalDigital check availability
• Cardboard Pouch Co check availability
• VibrationElectronic check availability
• Polish Wallet check availability
• The Hydraulic Audiovisual check availability
• RaggedWallet check availability
• Purse Co check availability
• The Ionic Opto check availability
• Reproducing Online Trading Co check availability
• The Disc check availability
• Oro check availability
• Soft Pocketbook check availability
• The Photography Technological check availability
• The Tooled check availability
• The Online check availability
• The Full check availability
• Reproducing Digitized check availability
• OverstuffedWallet check availability
• Reciprocal Digital check availability
• Binary Digitisation check availability
• Unpredictable Digital check availability
• Modern Opto Trading Co check availability
• Eia Electrons check availability
• Photo Digitisation Pro check availability
• Analog Computer 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
• Get Busy With The Wallet.
• Digital, Let The Good Times Roll.
• Make The World A Better Place With E Wallet.
• Wallet Is The Buzz.
• Let Your Digital Do The Walking.
• Own Wallet, We Care
• Digital Comes To Those Who Wait.
• Have You Had Your Wallet Today?
• Nobody Does It Like Digital.
• Don't Play With Fire, Play With Wallet.
• Visual Is What We Do
• E Wallet - If You Love E Wallet.
• You're Never Alone With A E Wallet.
• From New To Gray
• Refreshes The Electronic Other Beers Cannot Reach.
• Palato Computerized, Facial Computer
• Micro On Lines Are What We Do
• E Wallet, How Did You Live Without It?
• There's Only One Thing In The World I Want And That Is Digital.
• You Need A E Wallet.
• It's A New Wallet Every Day.
• P-P-P-Pick Up A Digital.
• Good Honest Wallet Since 1896.
• Feel It - Digital!
• E Wallet, Any Time Of Day.
• Open Wallet, Take A Seat
• Work Hard, Forgotten Harder
• Get More From Life With Digital.
• Point Of The Money
• Digital Strikes Back.
• Rate Of The Analogue
• For The E Wallet You Don't Yet Know.
• Non Information Are What We Do
• Digitals With System
• E Wallet - Be Prepared.
• Processing Computings 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
• 250+ Unique Digital Wallet Business Slogans and Taglines 1 of 8
• 1 Tips For Starting A Successful Digital Wallet App (2024) 2 of 8
• 88 Marketing Ideas For A Digital Wallet App (2024) 3 of 8
• 1,000+ Best Digital Wallet Business Names 4 of 8
• 8 Digital Wallet App Success Stories [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

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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.

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.

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• e wallet app development

How To Start An eWallet Business?

• Posted by Niketan Sharma
• 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.

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.

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• Start An eWallet Business
• Starting A Digital Wallet Business
• Starting an eWallet business
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Digital wallets 101: What businesses need to know about this payment method

• Introduction

What are digital wallets?

Types of digital wallets, near-field communication (nfc), magnetic secure transmission (mst), are digital wallets safe, how to accept digital wallet payments, benefits of digital wallet payments for businesses, what types of hardware do businesses need to accept digital wallet payments, costs associated with digital wallet payments.

• Get started with Stripe 

Digital wallet usage isn’t just a growing trend—it’s rapidly becoming the leading way that people prefer to pay for purchases, both online and in person.

In this guide, we’ll share what businesses should know about digital wallet payments: how they work, the top digital wallet apps, and how to incorporate them into a payment processing strategy.

What’s in this article?

A digital wallet is an application that operates on mobile devices like smartphones and tablets and stores payment information, allowing users to pay for purchases directly from their devices instead of using their physical debit or credit cards. Digital wallets eliminate the need for customers to manually enter their card and billing information, making it a fast and simple payment option online.

Digital wallets also allow users to view payment histories and often store other important documents digitally.

The digital wallet space is a crowded and growing one. Companies like PayPal, Venmo, and Cash App offer digital wallet products that allow users to pay for purchases online and in person using their respective apps. Many banks and credit card companies have their own digital wallet functionality within their mobile apps.

Here are some of the most popular digital wallets:

Apple Pay Apple Pay has emerged as a leader in the digital wallet space, accounting for 92% of all digital wallet transactions in 2020 . Their wallet app is available on Apple devices such as iPhones, iPads, and Apple Watches.

Google Pay With over 100 million users, Google Pay is a leader in the digital wallet space.

Amazon Pay As the third largest company in the world and a fixture in ecommerce, Amazon has a very popular digital wallet as well.

PayPal PayPal’s digital wallet builds on its long history in online payments.

Click to Pay Visa, American Express, Mastercard, and Discover jointly launched Click to Pay, a unified online payment system that works with most major credit cards.

Alipay Alipay is a leading China-based digital payments platform with more than 1.3 billion active users as of June 2020 and $17 trillion worth of transactions in China per year.

WeChat Pay China’s other top digital wallet, WeChat Pay, has over 900 million users.

Digital wallets are most commonly used to store payment methods such as debit and credit cards, but they can also hold a wider range of digital items, including:

• Driver’s licenses
• Plane tickets and boarding passes
• Event tickets
• Membership cards
• Insurance cards
• Hotel and restaurant reservations

The takeaway: Digital wallet providers are not competing to be customers’ go-to payment method, but they’re also expanding the functionality of these apps to allow them to serve a wider range of uses. Anything a person might place in their actual wallet could soon be held digitally in a wallet on a mobile device. In fact, 15% of digital wallet users reported that they regularly leave their physical wallets at home .

How do digital wallets work?

To use a digital wallet, users must unlock the wallet app using facial recognition, fingerprint identification, or a PIN code, and then select the stored payment method they want to use. For online purchases, customers will continue through the business’s check-out process once they’ve engaged their mobile wallet of choice and selected the payment method stored within that they want to use for that purchase.

For in-person purchases, digital wallets use wireless, Bluetooth, and magnetic capabilities to transmit payment data from a customer’s mobile device to an enabled card reader or payment terminal. To conduct a transaction, users unlock their device, select their payment method, and then hold their device close to the card reader. Contactless payments using digital wallets typically just take a couple of seconds to complete and are powered by the following technologies:

Near-field communication (NFC) is the technology that most commonly powers contactless payments. NFC securely enables devices like smartphones, smart watches, and some credit cards to transmit payment information to card readers and payment terminals without physically making contact at all.

Magnetic secure transmission (MST) is a technology that allows smartphones to emit an encrypted signal that acts like the magnetic stripe on credit and debit cards. Digital wallets that use MST transmit the encrypted payment data to the card reader when the device is held at close range (a few centimeters usually) or tapped.

Quick response (QR) codes are matrix barcodes that the cameras on mobile devices can scan to initiate a transmission of information. In the case of digital wallets, these codes can be used to make a payment.

After the customer transmits their payment information from their digital wallet via one of the above technologies, the POS terminal or card reader will route the transaction information to their payment processor, who will communicate with the issuing and acquiring banks to process the purchase.

Digital wallets are very safe. Their amplified level of security stems primarily from the way they transmit data at the point of sale, where digital wallets use a process called tokenization. Here’s how it works: Instead of sending a customer’s actual credit or debit card number, the digital wallet generates a one-time code—called a token—made up of random numbers and sends that to the card reader instead. In the event there’s a data breach with the business or payment processor, any payments that were processed with digital wallets will be safer than other card payments, since no card numbers were used (and therefore can’t be stolen).

Additionally, digital wallet apps almost always require extra security measures, like face recognition or a PIN number, before they’ll even initiate a payment. Compared to card transactions that use magstripes or EMV chips, digital wallets are currently the most secure way to pay.

To accept digital wallet payments from customers, businesses need to set up their online and in-person payments system to be able to accept them. Most payment processing providers, including Stripe, already have hardware and software for businesses that are enabled to accept digital wallet payments. Here’s the rundown on accepting wallet payments online, in person, and on mobile apps:

Accepting wallet payments in person Businesses need to have POS terminals or card readers that are equipped with NFC technology in order to accept contactless digital wallet payments for in-person transactions. Most newer payment terminals, including Stripe Terminal , have built-in capabilities that allow businesses to accept wallet payments.

Accepting wallet payments on web If your business is already accepting payments on your website, you’re already using a payment gateway from a processor like Stripe, and it likely supports digital wallet payments. Stripe offers businesses a single integration for all wallets that works across Stripe products. With Stripe Checkout, Apple Pay and Google Pay are automatically enabled. Customers can also scan a QR code with their mobile phone to complete transactions.

Accepting wallet payments on mobile Stripe Checkout supports digital wallets as a payment method on mobile as well, allowing customers to confirm the transaction by authenticating their wallet credentials at checkout using fingerprint or face recognition, their mobile passcode, or by logging in to their wallet app.

Many businesses are not only accepting digital wallet payments, but overwhelmingly preferring them as a payment method. In an annual outlook survey conducted by Visa in January 2022, 82% of small and micro businesses said they will accept digital payment options in 2022, and 46% of customers polled said they intend to use digital payments more often in 2022. Additionally, almost 60% of the businesses surveyed said they are exclusively accepting digital payments now or plan to start only accepting digital wallet payments within the next two years.

Here are a few of the main reasons why so many businesses prefer digital wallets:

Increased sales Digital wallets reduce friction in the checkout experience, which leads to higher conversion rates and revenue. Having a seamless checkout process that supports a variety of payment methods such as digital wallets is a crucial way to remove barriers that might dissuade new customers from converting and lower the lifetime value of existing customers.

Better conversion rates on mobile Customers generally don’t want to pull out a credit card and manually input their payment information into a mobile device to complete a purchase. Not accepting digital wallet payments for mobile purchases leads to increased abandoned carts and lower conversion rates.

Convenient and easy For both businesses and their customers, digital wallets are about as effortless as payments get. For businesses that accept payments in person, the efficiency of accepting contactless payments from digital wallets can cut down on wait times and increase customer turnover. And no matter where you accept payments, creating an efficient payment experience is something your customers will appreciate.

Highly secure Again, digital wallets are very secure compared to other card payment methods. Tokenization outpaces other security efforts and helps mitigate the risk of credit card fraud. Digital wallets’ security helps businesses reduce operating costs in addition to cutting down on fraud claims and chargebacks, all of which cost businesses money.

Customers are adopting digital wallets quickly Customers are embracing digital wallets. A study found that there were over 2.6 billion digital wallet users worldwide as of 2020, with an expected 4.4 billion by 2025. From the Visa survey , 16% of customers are already exclusively using digital payment methods, and 25% say they anticipate making the transition over the next two years.

In order to accept digital wallet payments for customer purchases in person, businesses need to have a card reader that’s NFC-enabled and POS software that supports this payment type. Stripe’s card reader for in-person transactions is enabled for contactless digital wallet payments.

If you do business through an online platform or marketplace, most of them are equipped to accept a range of digital wallet types, so there’s probably not anything additional you need to do to enable them for your sales. For your website, you need to ensure your payment provider supports wallet payments and that the payment type is built into its checkout experience.

Stripe customers don’t pay any additional fees to process wallet payments, and the pricing per transaction is the same as other card transactions. For most businesses, the cost to accept digital wallet payments is the same as other credit card transactions, so at most, you might have to upgrade your hardware to be able to accept wallet payments.

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Core strategies to build effective digital wallet solution

Quick Summary

Face verification has become an essential feature of eKYC solutions, leveraged for the identity verification process. It effectively prevents fraud and fastens the customer onboarding process. But, what exactly is face verification in an eKYC solution and how does that work for fast and secure identity verification? This blog will give you answers to all these questions. Happy reading!

There will be over $16 trillion in digital wallet payment transactions by 2028!

This rise in digital wallet transactions is due to technological advancements and digital transformations happening at lightning speed. Also, the market for digital wallets is becoming too competitive with easy access to development tools.

So, to cut through the mobile wallet crowd and outshine your competitors, you need to jump into the market with a strategic plan!

A robust digital wallet solution that your customers would love to buy without a second thought would be - easy to use, cost-efficient, secure, seamless, convenient, omnichannel , and much more. But, how to reach there is everything you need to focus on.

In this blog post, you will explore;

• The digital wallet market
• Examples of successful digital wallets
• Core strategies to build an effective digital wallet solution
• Process of building the digital wallet mobile app & its cost

So, let’s start with the digital wallet market!

The digital wallet market is booming globally. Here, are some digital wallet market stats showing its big growth potential and why you need it!

To further add to the growth potential of digital wallets. Here are some examples of digital wallets that have shown tremendous growth and success over the years.

GrabPay is one of Malaysia’s leading eWallet providers . Grabpay enables users to pay for everyday services such as bills, groceries, food items, rides, prepaid reloads, etc – all within one app.

M-Pesa is a mobile phone-based money transfer service , payment, and micro-financing service launched in 2007 by Vodafone. It is preferred to make payments across the continent for both banked and unbanked customers with a safe, secure, and affordable way to send and receive money.

PayPal is the market leader in payment solutions. Its One Touch software allows you to use your smartphone to make both online and offline payments. The app is available on both Android and iOS devices.

Alipay is China’s largest third-party payment provider. Alipay enables users to store credit/debit card details to make online and in-store payment transactions using their smartphones.

• Core strategies to build an effective digital wallet solution for your business

Now that you are familiar with the top successful digital wallets, Its pretty sure you want to try building your own digital wallet solution.

But, before you do that. Stop for a while! Don’t just enter the market in haste. You need to get your vision, mission, and strategies straight. But, don't worry you do not have to decide it all on your own!

This section will tell you just the right strategies you need to incorporate to build a digital wallet solution.

Research & analysis

Market research and competitor analysis are essential before you begin building a digital wallet solution. During this process, you must decide for which industry you will design an app, who your target audience will be, and what type of digital wallet you will offer to your audience.

What features & functionality do you want to incorporate, and who your competition will be? Market research will assist you in conceptualizing your application and deciding how to differentiate it from the competitors.

Scope out the detailed overview of your customer requirements

You should be well aware of your customers and their needs. It is crucial to conduct thorough research and analysis to gain a comprehensive understanding of your target customers' needs, preferences, and pain points.

By gathering insights into their financial habits, preferences, and expectations, you can tailor your digital wallet solution to meet their specific requirements to ensure a seamless and user-friendly experience.

Decide on the type of wallet you will offer

Before you consider developing a digital wallet, you must first determine the type of digital wallet you will provide to your target audience. There are three types of digital wallets , each of which differs from the others in terms of payment methods.

Let’s take a closer look at each of them separately:

Closed loop wallets: Designed for specific ecosystems or platforms, these wallets are limited to specific merchants or services.

Examples: Paypal, Venmo, Samsung Pay, and more.

Semi-closed loop wallets: These wallets offer more flexibility and allow users to store funds from various sources and make purchases within a specific network or ecosystem.

Examples: Zelle pay, Citrus, Paytm, Free charge, Oxygen, etc.

Open loop wallets: Often referred to as multi-currency wallets, these wallets provide users with the freedom to store various currencies and make purchases across multiple platforms and merchants.

Examples: Apple Pay, Google Pay, and more.

Prioritize offering key features

One of the core strategies is to know the difference between core and non-core features. And prioritize offering all the key features your customer wants and your competitors are also offering. Just remember to stay one step ahead of your competitors.

Here are a few essential functionalities to incorporate while developing your finance-based application:

P2P/P2M/P2A/P2G

The wallet should be capable of transferring funds with friends/relatives, merchants, agents, or government disbursements.

Topup and utility bill payments

Top-up and bill payment services allow consumers to electronically top-up their prepaid service accounts and pay bills for their post-paid accounts like mobile, fixed line, and DTH.

NFC/QR/biometric payments

Users should have access to pay through multiple options based on available resources like QR codes, NFC payments , biometrics, etc.

Loyalty & rewards

Loyalty and rewards based customer engagement are highly recommended to meet the changing goals of service providers like;

• Facing increasing competition
• Changing technology
• And attracting more consumers

Bulk payments

The bulk disbursement option facilitates the disbursement of funds to multiple users in a single go. It can be useful in disbursing grants, salaries, subsidies, etc.

Split payments

Consumers can split their bills between two or more customers by entering the number of customers and the total bill amount that they’re supposed to pay.

For each transaction, an invoice will be generated that the consumers can view and download from their mobile application.

Auto reconciliation manager

Mobile money systems are usually integrated with third-party systems like billing systems, IN, banks, payment gateways, etc. Now at the end of the day, it results in a mammoth task to reconcile the transactions happening with various systems.

It is a laborious task that requires a lot of manpower from the operator side. So the system must have an automatic periodic reconciliation feature, trust account reconciliation with a partner bank, system e-value & biller’s reconciliation, and bank-to-wallet and wallet-to-bank reconciliations.

Financing analysis

This feature enables customers to track their spending which encourages consumers to better manage their expenditures and set spending limits.

Learn about the regulations that your mobile wallet technology must follow

The financial industry is heavily regulated. So, digital wallet solutions must adhere to various compliance and regulatory requirements.

Stay informed about the latest regulations and guidelines governing digital payments, data privacy, AML, and KYC protocols. Collaborate with legal experts and regulatory bodies to ensure your digital wallet solution meets all necessary standards.

Emphasize top-notch security standards and compliance

Security is crucial in the digital wallet solution as it involves handling sensitive financial data and transactions.

To protect your customers' information and maintain their trust, implement robust security measures, such as;

• Multi-factor authentication
• Tokenization
• Biometrics and more

Plus, ensure compliance with industry standards like the PCI DSS and GDPR to maintain a secure and trustworthy digital wallet ecosystem.

Choose the right digital wallet platform

Selecting the appropriate digital wallet platform and technology stack is crucial for building a scalable, robust, and future-proof solution.

Consider factors such as:

• Cross-platform compatibility
• Integration capabilities
• Scalability & flexibility
• API-driven efficiency
• Security & compliance features

To make your idea a reality, you can collaborate with a digital wallet solution provider that can assist you in reaching your goal.

• Process of building the digital wallet mobile app

Design and prototype phase

The mobile wallet app development process starts with design and prototype. You must concisely describe the design format and provide it to your design partner.

You must create a complete project review, and establish the key objectives and target audience. You need to outline the features you intend to implement, explain your product’s visual concept, and include your recommendation prohibitions, among other things.

Mobile wallet app development phase

After the completion of designing and having a virtual version of the wallet that users will probably value, it is indeed time to begin developing a digital wallet.

The end aim of this process is to develop a live digital payment app with all the features that were decided upon during the research phase.

App testing phase

During development, programmers perform a test suite on the digital wallet software solution to determine if specific features are functioning as planned. Nevertheless, during the formal testing process, developers must evaluate the entire program for functionality and user experience.

App launch & promotion phase

After the completion of the digital wallet app development and testing process, now is the time to launch your digital wallet solution. To make your app live on the app stores, you must first pass through a few guidelines set by Google Play and the App Store.

Additionally, the server side should be connected to the app and switched to a development site.

And once the app is released to the market, it’s time to think about the promotion. However, the development of a marketing plan should begin long before the app is made available to end customers.

You may utilize social media marketing, content marketing, sponsored ads as well as word-of-mouth marketing for your app promotion.

Ongoing maintenance phase

Once the application is on the app stores, it will be your responsibility to maintain it. You must keep your app updated by accommodating the latest operating system features, fixing minor issues/bugs, and simplifying the user experience. To be successful, you must update your app regularly in addition to developing it.

• Determining the cost of developing a digital wallet app

The cost varies significantly based on the app's complexity, features, platform requirements, and development team's expertise.

• More features in digital wallet solutions like multi-currency support, loyalty programs, and personal finance management increase complexity and cost.
• A well-designed, intuitive user interface requires investing in professional UI/UX design services which adds to the cost.
• Integrating with payment gateways, financial institutions, and third-party services involves additional development effort and potential licensing fees.
• Implementing robust security, encryption, tokenization, and regulatory compliance adds to the development cost but is crucial.
• The expertise, experience, and location of the development team significantly impact the overall cost. Ongoing maintenance, updates, and support should be factored into the total cost for long-term success.
• How DigiPay.Guru can help?

DigiPay.Guru is a leading digital wallet solution provider offering everything you need from convenience, security, and multiple payment options, to all the key features that make it a customer and future-centric app

Our white label digital wallet solution can help you to;

• Attract, retain, & increase customer satisfaction
• Multiply customer base
• Generate new revenue streams
• Minimize overall costs
• Boost financial inclusion

Nikunj Gundaniya

Product manager of DigiPay.Guru, one of the leading digital wallet solution. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.

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Effective strategies to scale your business with API-driven digital wallet solutions

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Digital Wallet

Digital Wallet for Business: 5 Effects on Retail Success

With most Millennials and Gen-Zers having one or more mobile devices at their disposal, the importance of a digital wallet for business is hard to overestimate. Consumers want to buy online, from their phones, in as few clicks as possible — and it’s up to forward-thinking businesses to satisfy this demand.

This has an impact beyond digital wallet companies — any eCommerce or retail business aiming to survive the recession needs to set up its payment system to accept digital wallets.

How should you prepare for the oncoming economic downturn? By securing a healthy bottom line and maximizing your revenues. And what’s the best way to ensure this outcome? Digitalizing your customer journey to provide a smooth mobile-first browsing and checkout experience. Indeed, Forrester forecasts 70% of retail sales will be digital-influenced by 2027.

This article explores the concept and features of digital wallets, their impact on eCommerce, the ways they affect customer behavior, and how custom digital wallet development helps maximize the benefits of a digital wallet for business. Without further ado — let’s dive in.

Revolutionizing Retail Transactions: The Power of Digital Wallets for Business

While this service is poised to become ubiquitous in the years to come, it’s useful to clearly understand what digital wallets are and their importance for your business.

Understanding the Concept and Functionality of Digital Wallets Digital wallets are secure mobile repositories enabling customers to pay for goods and services on various sites without having to enter their payment details every time. The customer simply saves their credit card details to the wallet and no longer has to waste time on authentication or PINs for every transaction.

Outside of eCommerce, eWallets free customers from carrying around large sums of cash and help mitigate the risk of card details theft at ATMs or simple robbery. Should a device with access to a digital wallet be lost or stolen, the access can be easily revoked from any other device a user has access to.

These features have made digital wallets one of the most popular payment choices for consumers around the world. And businesses should react fast.

Why are Digital Wallets Crucial for eCommerce Businesses?

Integrating digital wallets with your checkout page helps address several concerns and improves your customer conversion rates. It allows:

Improving the mobile checkout experience

According to a SaleCycle report, around twice as many customers abandon their carts on mobile devices. Often this is down to a clunky checkout process with multiple fields for data input and user authentication/authorization. Adding a digital wallet option, like PayPal or Amazon, allows your customers to accomplish the transaction in a couple of clicks with banking data and the shipping address already stored in the app.

Facilitating user authentication

Some of the main reasons for shopping cart abandonment at checkout are the need to create an account, pay extra for delivery, or a long and complicated checkout process.

Digital wallets have a significant impact on revenue growth, tripling it by allowing visitors to complete purchases without the need to create an account or go through payment authentication processes. All their banking information is already with the digital wallet providers that store it securely within the app.

Increasing authorization rates

With GDPR and PSD2 coming into effect, issuing banks expect a much more significant degree of security from eCommerce websites when handling online purchases. 3D Secure payments involving SCA (Strong Customer Authentication) rely on something only a customer knows (PIN code, password), has (token), or biodata (Touch ID, Face ID, retina scans, voice patterns, etc.). Digital wallets often have this data by default, meeting the 3DS requirements and increasing payment authorization rates by the issuer banks.

All in all, there are multiple benefits to using a digital wallet for merchants. And even putting the technical part aside, there are behavioral advantages too.

How Digital Wallets Influence Consumer Behavior

Let’s see how having a digital wallet for business as a payment option can help grow your revenues from a psychological standpoint.

Convenience and Accessibility

Digital wallets are useful beyond paying for goods on eCommerce websites. Digital wallets are used to pay for goods in online shops, subscription services, pizza orders, Uber, booking lodging at an Airbnb or tickets. This is what makes it a “ preferred ” means of payment.

Offering customers a payment method they are accustomed to and have confidence in is much likelier to result in a purchase than methods that require them to enter billing details and go through an authentication process. Besides, digital wallet providers’ services are mobile-friendly by default, so they can be accessed from any mobile device with ease.

New Shopping Habits

The pandemic brought about new consumer habits and patterns that are here to stay. People are now accustomed to and confident in buying online. However, as multiple eCommerce and retail platforms flourished during the pandemic, consumers have little incentive to remain loyal to a single brand or vendor.

This means that ensuring a fluent and streamlined digital shopping experience is paramount to ensuring your one-time visitors turn into paying customers.

Impulse Buying and Spontaneous Purchases

The key difference between eCommerce and brick-and-mortar shopping is not having to carry around cash or credit cards. People simply browse the internet, and if they find something that catches their attention, they hit that “Add To Cart” button, often without giving it much thought. This results in impulse buying or spontaneous purchases. Leading your visitors to this purchase is a marketing, UX, and eWallet design challenge. But ensuring the purchase is ACTUALLY just a couple of clicks away is a task for the checkout page. This once again emphasizes the need for a digital wallet for business — to make completing purchases a breeze for customers.

Customer Engagement and Loyalty

Digital wallet providers for eCommerce and retail allow your website visitors to shop reliably and securely from the comfort of their devices. After all, online shopping where the checkout works smoothly results in better engagement and customer satisfaction with the process.

What’s more, digital wallets are hubs for multiple purchasing patterns and subscriptions, which makes them ideal platforms for cashback, discounts, and eWallet loyalty programs . Customers love cashback, and when they can apply their coupons and loyalty points to get a discount at your store, they are more inclined to shop with you.

As you can see, businesses should combine technology and psychology to maximize customer satisfaction and conversion rates — and increase revenue as a result. Now, let’s talk about the other important aspects of using digital wallets for your eCommerce or retail business.

5 Effects of Using Digital Wallets for a Retail Business

While securing a healthy bottom line is essential, it’s just one of the five major benefits of using a digital wallet for business. They include:

Streamlined Transactions and Improved Operational Efficiency

Simpler authentication, streamlined authorization, built-in security, and the liability shift to digital wallet providers are all excellent drivers for improving operational efficiency. When visitors don’t file tons of chargeback claims due to a clunky checkout process, your business gets a much more predictable and transparent cash flow.

Boosted Sales and Revenue Generation

As explained above, providing visitors with convenient access to their preferred means of payment ups the chance of them completing planned — or spontaneous — purchases at your eCommerce shop. As a result, online retail platforms can see an up to 35% increase in their conversion rates, significantly boosting their revenue generation capabilities.

Expanded Customer Reach

According to Payments Dive, nearly 60% of abandoned carts are caused by the absence of a customer’s preferred checkout method. So if your checkout enables your customers to use their preferred means of payment in a couple of clicks, you get a completed order — and then another one.

When an online store proudly advertises that it accepts payments with familiar digital wallets, customers are happy to shop there. Familiarity creates comfort, and comfort attracts others. Where one person has used Apple Pay, many more may join.

Competitive Advantage and Differentiation

An eCommerce website that supports multiple digital wallet companies is far more convenient than one that only accepts Visa, AmEx, or Maestro. The more wallets for merchants you have, the wider the audience you can serve worldwide. If your competitors are lagging in this area, then you’ll definitely have an advantage.

Data Collection for Multiple Business Needs

Integration with digital wallet providers like Google Pay enables easy implementation of various analytical features. Both Google Analytics and other marketing tools like heatmaps, survey forms, and chatbots can help gather statistics on the customers’ journey, like:

• Tracking when the customers go to the checkout page
• Determining the most commonly selected options
• Measuring how long it takes them to complete the payment
• Monitoring whether they come back once they abandon the cart
• Calculating the average session time
• Identifying the most viewed FAQ articles, and so on

Collecting and analyzing this data helps adjust your eCommerce or retail website to ensure maximum efficiency of operations and increase your revenue.

Why Consider Custom Digital Wallet Development?

Although we believe that digital wallets offer significant benefits to both retail businesses and their clients, there are also some disadvantages of wallets in online commerce. However, they are few and not severe:

• Each integration is charged on a monthly subscription basis, and some additional fees might apply (integration, maintenance, payment processing fees, etc.). All of this adds up over the years.
• While most digital wallets for a business come with extensive developer documentation on their API integration, their capabilities are strictly limited to predefined options.
• Combining marketing data from different digital wallets can be challenging, as they all have separate tools for data analytics.

This makes custom digital wallet development a viable alternative to off-the-shelf solutions offered by major digital wallet providers. Developing a custom digital wallet for your retail business allows addressing these challenges.

• By developing a proprietary digital wallet solution, you only pay digital wallet companies for integration and payment processing, saving on other fees in the long run.
• You can include only the necessary features for your MVP digital wallet development to minimize its time-to-market and adjust the platform according to your evolving business needs.
• A centralized eWallet platform provides much better data collection and analytics capabilities as compared to disparate components from multiple vendors.

ElifTech has more than ten years of software development experience under our belt. We can cover all aspects of software delivery for startups and enterprises alike. Digital wallet development is one of our domains of expertise, and we can solve any challenges in this field.

Are you ready to future-proof your business, increase revenues and optimize operational experiences by integrating a digital wallet for business with your website? Contact ElifTech , and we will help you achieve your business goals.

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How to Create Digital Wallet: All-in-one Guide for Founders

Do we even have to talk about the stress level when you start a fintech startup and need to build a product that fits the market, satisfies users' needs, and wins among other fintech products? Not really. However, we need to determine the approach to help you achieve everything mentioned above. And remain sane.

In today's article, we'll talk specifically about digital wallets, also known as e-wallets. I'll explain how to create a digital wallet in steps. More importantly, I'll give you handy tips on securing your digital wallet and overcoming the most common development challanges. 

We are working with clients from the fintech domain since 2016. Such fintech products as Aspiration and Cardless are in our portfolio, so I must ensure you that this article is based on real-life cases and experience. 

Digital Wallets Stats: What do we have now and what to expect in 10 years?

What is digital wallet.

Let's make sure that we're on the same page and recall the fundamentals. Digital wallets, also known as e-wallets – are mobile applications that allow users to store digital versions of their credit cards, debit cards, and other payment methods, enabling them to make purchases quickly and easily online or in stores.

Digital Wallets Stats

According to a report by Grand View Research , the global digital wallet market size was valued at $1.04 trillion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 20.8% from 2023 to 2030. The report says we should thank the increasing adoption of smartphones and the need for contactless payment options, particularly in light of the COVID-19 pandemic – for such rapid growth. 

So what to expect from digital wallets in the upcoming 10 years? The digital wallet market will continue to grow at a rapid pace. The increasing use of mobile devices for financial transactions and the emergence of new technologies such as blockchain, biometrics, and AI is expected to push the adoption of digital wallets further and make them even more appealing to consumers.

Why To Create a Digital Wallet: Benefits For Your Business

Setting up a digital wallet really looks like a prospective niche, but before developing one, you should answer the question, "why?" Below I gathered several benefits a founder gets by creating a digital wallet.

It increases customer engagement and loyalty

Digital wallets make it easy for users to make payments and transactions from anywhere, at any time. This can increase customer engagement and loyalty, as well as help businesses reach new customers who prefer to make payments digitally.

It saves costs

Digital wallets can reduce transaction costs for businesses, as they eliminate the need for physical cash or traditional payment methods. Additionally, digital wallets can streamline accounting and financial reporting processes, reducing administrative costs.

It provides data insights

Digital wallets provide businesses with valuable data. And data nowadays is everything! You get insights into customer spending habits, preferences, and behavior. This data can help improve your business's marketing strategies and better understand your customers.

It provides higher security

Digital wallets can offer enhanced security features, such as encryption and two-factor authentication, which can protect users' sensitive financial information from theft and fraud.

It attracts and retains customers

Digital wallets can be integrated with other services, such as loyalty programs, ecommerce platforms or rewards systems, which can help businesses attract and retain customers.

The "HOW TO" Part. Here're 6 Steps on How to Make a Digital Wallet

So, we have approached the most interesting part of this article. Let me guide you through the process of digital wallet project creation. 

Below I described the steps and approaches we use at Uptech to develop products. If you have any questions regarding them or need a consultation about your digital wallet project, feel free to reach our team . We'll be happy to help you. 

Step 1: Define Your Goals and Features

The first step in creating a digital wallet is to define your goals and features. 

• What is the purpose of your digital wallet?
• Who is the target audience?
• What features will it have? 

For example, will your digital wallet allow users to store multiple currencies, make payments to merchants, and transfer money to other users?

It's important to clearly understand your goals and features before moving on to the next step. This will help you determine the technologies and resources needed to build your digital wallet.

Uptech tip: Product Discovery is the stage of product development that comes in handy here. We at Uptech conduct product discovery to validate your idea, define a feature set, and find product-market fit. 

Step 2: Choose a Platform and Technology

The next step is to choose a platform and technology for your digital wallet. There are several options available, including iOS, Android, and web-based solutions. You'll also need to choose a programming language, such as Java, Python, or Swift.

When selecting your platform and technology, it's important to consider your target audience and the devices they use. For example, if your target audience primarily uses iOS devices, it makes sense to develop your digital wallet as an iOS app. 

If you didn't take the product discovery stage seriously, this is a good example of how skipping it can lead to a product with no market fit and huge cost losses. 

Uptech tip: At Uptech, we offer tech stack audits where we engage our Solution Architect, who analysis your business' needs and pick the best tools. We make sure to build a scalable and secure app. 

Step 3: Create a User Interface

Once you've selected your platform and technology, it's time to create a user interface (UI) for your digital wallet. The UI is the front-end of your digital wallet and is what users will interact with.

Consider that 52% of users think a poor mobile experience causes them to lose trust in an app. This is why it's so important to hire a professional UX/UI designer . 

Your UI should be intuitive and easy to use. It should allow users to quickly access their account information, make payments, and transfer funds. Consider using a minimalist design with clear, easy-to-understand icons and buttons. 

Check out the examples of UI concepts for fintech apps we create:

Step 4: Integrate Payment Gateways

The next step is to integrate payment gateways into your digital wallet. Payment gateways allow users to make payments using their credit card, debit card, or bank account.

There are several payment gateways available, including: 

It's important to choose a payment gateway that is secure and reliable, as users will be entrusting their financial information to your digital wallet.

Here's our article in which we explain how to create a website with payment gateways . 

Step 5: Implement Security Measures

Security is a top priority when it comes to fintech apps, and digital wallets aren't an exception. You'll need to implement several security measures to protect user data and prevent fraud.

• Implement two-factor authentication, which requires users to enter a second form of authentication, such as a code sent to their phone, before accessing their account. 
• Use biometric authentication, such as fingerprint or facial recognition.

Interesting fact, Face ID on Android doesn’t provide full security and is easy to hack. So if you want to create a digital wallet on Android, my recommendation is to use fingerprint instead. 

There are more ways to secure your fintech apps . We have described 7 the most common in our fintech security guide. Check it out!

Step 6: Test and Launch Your Digital Wallet

Before launching your digital wallet, it's important to thoroughly test it to ensure that it's functioning properly and is user-friendly. This includes testing for security vulnerabilities, as well as testing for usability and performance.

Once you've completed testing, you're ready to launch your digital wallet! Every founder knows that this is where the hard work begins. In the first weeks, you should cope with all the bugs and crashes if they happen. When things calm down, you maintain your app, gather feedback, improve it constantly, and release the next app versions. 

Uptech tip: Launching a startup is hard. Bet if you did a quality job during the development, conducted in-depth discovery, created a stable app infrastructure, and tested the app – there will be less headache after launch. 

You can trust the development part to our professional developers as we have been developing fintech apps since 2016 year and know all the ins and outs of this industry. Check out our fintech software development services .

How to Set Up a Secure Digital Wallet

I can't stress enough the importance of security in fintech app development, and as we at Uptech prioritize security, here are 10 practical development tips to make a digital wallet secure:

Implement multi-factor authentication

MFA requires the user to provide two or more forms of authentication, such as a password and a biometric identifier, like a fingerprint, to access their account.

Use end-to-end encryption

End-to-end encryption ensures that the data transmitted between the user and the wallet is secure and cannot be intercepted by a third party.

Store sensitive information securely

Sensitive information like user credentials and private keys should be encrypted and stored in secure servers.

Use password protection

Provide several codes that users should enter at various stages of working with a digital wallet.  

Use point-to-point encryption (P2PE)

It ensures end-to-end protection and encrypts the whole transaction when an owner swipes the phone over a PoS terminal.  

Implement tokenization

A token is a combination of symbols that don't contain financial info and are useless for fraudsters. It allows the app to secure e-wallet payments using data encryption and stores users' data on cloud. 

Use account blocking

The system can black the wallet when there's suspicious behavior with the user's wallet. Or on the owner can block the wallet by call, message, or in another way. 

Conduct regular security audits

Regular security audits can help identify potential vulnerabilities and allow developers to address them before they become a problem.

Use a firewall

Firewalls can help prevent unauthorized access to the wallet, protect against malware and viruses, and block suspicious network traffic.

Implement transaction limits

Set transaction limits to prevent users from transferring too much money at once or too frequently. It will help limit the damage caused by a security breach.

3 Main Challeneges of Developing a Digital Wallet

Different compliance regulations.

Money and finance are strictly regulated by the central bank. Nowadays, most digital payment apps must comply with AML, GLBA, and JOBS Act. in the US, and GDPR and PSD2 SCA in Europe. 

The tricky thing is that the legal regulations vary from country to country, sometimes even from state to state. It's important to get familiar with the current norms and regulations in your target country and choose a fintech app development partner with previous experience in the fintech domain.

Fraud detection & Risks mitigation

Fraud is a big problem in digital wallet app development, and it's important to take steps to prevent it. Many people who are not familiar with eWallets are easily fooled, and digital wallet payment risk is associated with data theft, data leak, malware attack, hacking, and more. This risk is one of the main reasons why some people avoid using eWallets or abandon them. However, with advanced technologies and security hacks, developers can now mitigate the most common app vulnerabilities and risks . 

Technological hurdles

Let's keep it clear: setting up a digital wallet app is a complex task and requires much expertise. To ensure that your project is successful, it's important to hire an experienced app development company that has experience in creating secure, fast, easy-to-use, and scalable apps. Companies like Uptech can guide you in creating an effective app that meets your business' and users' needs. 

Developing a digital wallet may seem overwhelming. Security challenges, domain complexities, and tech issues – all these require expertise and a team of professionals. So don't be afraid to ask for help and assistance where needed. 

Leveraging Uptech expertise and 7 years of experience in app development can really help. It is a smart move to take some time to find a reliable development partner. It can save you time and money to trust the part of digital wallet development to an outsourcing team with a lot of experience. So we will be here when you need some guidelines with developing your product. If you're looking for extra hands now, contact our team .

Tell us about your idea. We will reach you out.

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Digital wallets in 2021: for the tech-savvy generation

Patrick R | May 20, 2021

When the spread of Coronavirus turned the world upside down in 2020, human beings quickly adjusted to the new, socially distanced world.

We blinked, and suddenly everything was happening online, from the comfort of our homes — whether it was getting on with our day jobs, purchasing groceries, or indulging in entertainment.

Many businesses also had to digitally transform themselves to keep up with the “no contact” way of functioning. Significant technological disruptions enabled financial inclusion and provided rapid payment digitization for consumers.

Naturally, with businesses going online, many end-users adopted digital payments for the first time to pay bills — bringing the total digital payments processed globally in 2020 to a whopping 70.3 billion !

The total transactional value of digital payments is expected to grow at a 12% CAGR from 2021 to 2025. Not so surprisingly, cash is set to become the least common mode of payment worldwide by 2022. Digital payments have proven to be reliable and convenient in these uncertain times.

Defining digital wallets

Simply put, a digital wallet is an online service that enables individuals and businesses to transact electronically.

Also known as a “mobile wallet,” it safely stores users’ information for various payment modes (e.g., debit/credit card details), along with other items such as driver’s licenses, boarding passes, movie tickets, and gift card coupons.

But utilizing such wallets, users can purchase anything or do any transaction quickly from their mobile phones.

Digital wallets: why are they the talk of the town?

They are convenient

Users do not need to lug around a wallet overstuffed with different transactional cards. Even if users forget their physical wallets at home, they can still pay using mobile phones.

They are safe to use

They are an extension of our daily lives

Humans undertake many tasks from their mobile phones, including transferring money to another person and paying bills. Using a digital wallet makes sense! They provide value to consumers.

They provide actionable data

Businesses can collect valuable customer data, such as how often they shop, where they shop, how much they spend, and so on. The information can be used to improve further the marketing messaging and customer service.

The workings of a digital wallet

In many cases, a digital wallet asks users to register for the service by entering their card details. The information is then verified through an OTP authentication process, after which the registration process gets completed.

If you use a service like Apple Pay, you might not be required to undergo a registration process but only add your cards. Once the digital wallet is set up, you can use it wherever a contactless payment symbol is at the POS.

• If you can see the symbol, bring your device close to the payment terminal.
• Both devices communicate with each other by utilizing NFC technology.
• To complete the transaction, confirm the same by tapping the required button in the app or enter your password.
• Keep holding the phone over the terminal until the payment goes through.

Six features of digital wallets

Varied merchant payment processors

Digital wallets enable businesses to accept payments in multiple plays, typically through debit and credit cards. The merchant account establishes an agreement between the merchant acquiring bank and an acceptor for settling payment card transactions.

Technologies such as QR scan codes and contactless NFC have made it possible to transfer money and make payments, minus human intervention.

Simple consumer bill payment processing

Digital wallets offer, perhaps, the most convenient option for instant payments. Mobile recharges, electricity bills, flight tickets, and even loan EMIs can be taken care of online. Moreover, these wallets come with auto-payment options and bill alerts so that consumers can avoid a surcharge for late payments.  

Easy registration and login

One can conveniently create an account without paying any fee or hidden charges. Almost every digital wallet ensures that. All users have to do is:

• Download and install the app.
• Sign up through a mobile number or an email address.
• Confirm the registration through an OTP.
• Link the wallet with a UPI ID.
• Add cards or money to the wallet.

User-friendly dashboard

Whether you are a merchant or a consumer, digital wallets have a user-friendly interface and dashboard. That way, the end-users can keep track of all payments and manage financial activities from the backend.

The end-users can check balance, access in-app features, add money to the wallet, and access reports of their finances anytime. Consumers can also set up limits of monthly spending from their dashboard.

Chatbots for real-time support

Integrating a chatbot in the digital wallet enables merchants and other businesses to stay in touch with their customers 24/7. On the other hand, the latter can reach out to a chatbot if they have a question or query regarding the wallet.

This functionality makes the digital wallet seem more reliable. Moreover, the chatbot can be fed answers to simple questions. Anytime a case is too complex, consumers can create a ticket within the chat window itself and seek help.

Access to limited-period offers and schemes

Depending on the type of digital wallet businesses use, they can develop various loyalty programs, and discount coupons and cashback offers to encourage their customers to download and shop from the wallet.

Six types of digital wallets

AI-powered wallet

This kind of wallet takes consumers beyond the payments and digital banking capabilities. For starters, they can improve the management of their financial health through a well-designed admin panel. Integrating chatbots within the wallet can enable them to solve their payment issues faster. AI also helps reduce the occurrence of fraud in transactions.

Cryptocurrency wallet

A cryptocurrency digital wallet is a physical medium that stores the private and or public keys for cryptocurrency transactions. Besides, it offers the functionality of information encryption. More than 64 million cryptocurrency wallets exist today, with the total number of users being 71.4 million .

NFC-based wallet

NFC or Near-Field Communication is a mode of wireless transfer data which allows laptops, tablets, smartphones, and other devices to transmit and receive data over a short-range securely, usually not more than 4cm.

The global NFC market is estimated to be worth $47.43 billion by 2024. NFC is often considered an upgrade of the existing RFID technology and powers contactless payments through digital wallets such as Apple Pay.

NFC-based wallet payments are more secure because the technology moves the info (card details) to the location gadget (NFC reader) quickly, leaving little scope for data leaks.

How do NFC-based wallets work?

Virtual card

A virtual card is a unique credit card number that offers an easy and secure way of transacting digitally without exposing the primary credit card account number to the merchant. Consumers can limit a virtual credit card number for single merchant use.

Foreign remittance

It defines the transfer of money from foreign workers to their near and dear ones residing in their home countries. Foreign remittance also goes by “worldwide settlement.”

In many countries, this settlement constitutes a significant portion of the economic growth as calculated by the GDP.

The large volumes of international money transfers have called for the digital wallet app development, particularly for foreign remittance, to offer greater convenience to the users — at a much lower risk of cash loss and unnecessary international surcharges.

Biometric wallets

A type of digital wallet, it uses biometric authorization to limit the risk of data fraud and extortion. It digitally stores many paper identification documents such as credit cards, driver’s licenses, passports, and personal medical records, to name a few.

Biometric technologies include:

• Fingerprint recognition
• Facial recognition (e.g., selfies)
• Iris/retina scans

Six reasons for businesses to accept digital wallets today

If businesses start accepting wallets today, they can:

Offer improved customer experiences

If you want more consumers to use your offerings, you must make spending easier for them. Gone are the days when we would make our payments on the desktop. Today, mobile transactions have taken precedence over everything else and how! You see, customer experience should be frictionless. Digital wallets enable smooth payments all the way.

Enhance loyalty schemes for better engagement

Did you know 69% of consumers are likely to use a loyalty card on their smartphone? Moreover, 73% are likelier to join a loyalty program if their points get automatically updated on their mobile loyalty cards.

If you do not allow your customers to collect points when they shop from you, that they can redeem through a digital wallet, you are missing out on fail-proof customer engagement.  

You could partner with any digital payments company and ensure your customers boost their points by shopping from you more and increasing the use of digital wallets.

Deliver smooth transactions across all channels

Today’s consumers do not want to waste time pulling out their physical wallets when they already have a phone in their hands. If they are at the POS, all they want to do is wave their digital wallet app across the NFC reader and complete the transaction.

Similarly, if they are shopping on your native mobile app, one payment mode should be the digital wallet. In a nutshell, please give them the flexibility to pay however they like. Digital wallets are channel-agnostic!

Prevent data leaks and fraud via AI and ML

Integrating AI and ML capabilities in digital wallets can help businesses track frauds and theft efficiently. Interestingly, many banks have already invested $217 billion in AI-based apps in a bid to fight fraud detection and safeguard their customer data.

Ensure speedy and hassle-free transactions

Digital wallets can accelerate the cash flow since mobile payment processors transfer money to a bank account within three working days. No wonder digital transactions are seamless and happen in the blink of an eye.

Encourage two-way expense tracking

Digital wallets offer a wealth of data about consumers. From their spending to shopping frequency, it is easier for merchants to look up history and better study customer behavior. On the other hand, businesses do not need to purchase expensive POS equipment or invest in paper and ink. Digital transactions are, in fact, cheaper than the traditional model.

Digital wallet apps

The money transacting platform is a pioneer in allowing international transactions — especially back in 1998 when options of sending money to other countries were zero. PayPal supports 25 currencies. It is more secure as it keeps the sensitive information of both buyer and seller private. The transactions made through the app can be easily tracked.

It offers the most secure way of making payments. Users can use their original Amazon account to transact. The app is available on both web and mobile and can be integrated with Alexa — enabling users to give commands to Alexa during the checkout. Users can also split payments.

Although established in 2015, it started gaining prominence in 2019. It has a simple funding process, and users can directly link their bank accounts to the app account. The API integration is quick and easy, and all information is strongly encrypted. Google Pay integrates with an audio-based QR system for easy payments.

Only for Apple devices, it offers a simple way to make payments with the help of Siri. The user can give voice commands to ensure the transaction gets done securely. The only thing is it does not let the users save their card information.

This, although safe, can be a hassle for those who plan on using the wallet regularly. It does, however, allow the users to save their important documents on the app.

This is the most popular digital wallet in the US. If you want to transfer money quickly to the bank accounts of your near and dear ones, Zelle can help you. Just by adding the payee’s info, you can start the transfer process. All P2P transactions made via the wallet happen in real-time. There is no processing fee levied on the users.

A product of Alibaba, it has more users than any other digital wallets. It has strong encryption and provides complete reimbursement in case of fraud or data leak. Until 2019, it was a pioneer in cryptocurrency app development due to its transactions related to cryptocurrencies.

Samsung Pay

It offers a Pandora box of financial services and allows users to pay however they like, including QR code scanning and simple bank transfers. Samsung Pay provides rewards and vouchers to users after every transaction and helps them with their credit score.

Digital wallets are the future (and the present)

There is no doubt in our minds that digital wallets are here to stay. Even before the pandemic, consumers were shifting towards digital wallet payments. The change in mindset has only accelerated in the past 12 months.

Despite the level of convenience they offer, wallets may not outbid the use of physical wallets because many government-issued IDs must be carried in physical form. Moreover, digital wallets need to be adopted universally across all industry niches.

Many businesses like gas pumps still require consumers to swipe a credit card. But it is only a matter of time when everyone gets the hang of using digital wallets. If your business wants to leverage mobile payments and digital wallets, do it now because the future is here. Read here the detailed guide on mobile app development.  

About the author

Patrick R, A techno-commercial leader heading Intuz as Director of Growth With over 12 years of experience in the field of Information Technology. His experience and expertise will entice developers and business entrepreneurs with rich content on the latest technology stack.

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The Benefits of Digital Wallets for Business Success

Digital wallets are fairly new to the U.S., but their use has increased as a result of Covid-19. According to   Computer Weekly , “More than 60% of the world’s population will use digital wallets by 2026.” If you’re on the fence about incorporating digital wallets into your business, here’s what you need to know about the benefits of digital wallets.  

What Are Digital Wallets?

Digital wallets are financial transaction applications allowing people to make payments using mobile devices. Digital wallets can also be used for online purchases and to transfer funds between friends and family. PayPal, Zelle, and Apple Pay are examples of digital wallets. 

Benefits of Digital Wallets for Businesses

If you’ve ever used a digital wallet, you probably understand the benefits from a consumer’s point of view. Overall, digital wallets are easy to use, fast, and convenient for both the customer and the business. While most business owners understand that happy customers equal a better bottom line, let’s discuss the specific benefits digital wallets offer businesses. 

Improved Checkout Speed

Digital wallets improve checkout speed because consumers don’t have to spend seconds opening their wallets and looking for their credit card to pay for something. Instead, they simply use their phone. 

For online transactions, checkout is much easier because consumers don’t have to get up, find their wallets, find a credit card, type the numbers, etc. Instead, they use the app to complete their transaction with data already stored on their phone, and they complete their transaction in seconds. 

While saving the customer seconds may not seem like it would significantly impact the bottom line, improved checkout speed creates goodwill because it reduces wait time and help customers feel at ease.

Increased Repeat Business

According to  a survey by 451 Research , digital wallets increase customer frequency. Based on this, we can infer that consumers like convenience and reward companies that make things more convenient with their loyalty and business.

Whether it’s a conscious decision or not, consumers’ actions and habits often surround merchants that make the checkout process as close to friction-free as possible. Amazon is a great example, making payments easy with “one-click ordering.” This has made consumers’ habits shift to using Amazon as their merchant of choice even when they’re not the least expensive option. 

Increased Conversion Rates

Businesses also benefit from higher conversion rates with digital wallets. This is because the checkout process is simple and easy. For example, when consumers type in their credit card numbers during an online checkout, it is time-consuming and leaves room for human error.

As a result, consumers go through the process only to get an error message because they typed the credit card number in wrong, and then they are so frustrated they no longer want the item they were about to purchase. On the other hand, when transactions are easy and seamless, more transactions will inevitably be completed. 

Decreased Fraud

Digital wallets are more secure because they are password protected and/or use biometric data, like a fingerprint or face scan. Credit cards, on the other hand, are misplaced and can be copied. Because of the additional protection features that digital wallets have, they can help businesses to decrease fraud. Decreasing fraud creates more goodwill for a business, and saves time and resources that go toward dealing with fraudulent charges. 

Decreased Chargebacks

Another benefit of decreased fraud is that it helps  decrease chargebacks . Decreasing chargebacks saves time and money, but it also helps ensure a better rate from your credit card merchant provider because you are seen as a trusted merchant with fewer “red flags.” 

The Bottom Line

Digital wallets are the future of doing business. They are faster, more convenient, and offer a more secure checkout for consumers. These benefits, in turn, lead to more goodwill, increased orders, higher conversion rates, and less fraud and chargebacks. 

Recommended Reading

Proactivity in Payments: 7 Tips Merchants Can Use for Higher Conversions

Managing Demographic Payment Changes with the Cloud

The Evolution of Customer Loyalty Programs

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--> How to develop a mobile wallet strategy: The business view

As I conclude my series on mobile wallets, I want to talk about the business view and offer some recommendations on how to develop a mobile wallet strategy.

Horizontal versus vertical integration

The main business dimension that you should consider when determining a mobile wallet business model is the differentiation between horizontal and vertical wallets.

In the case of horizontal wallets, the provider of a wallet integrates services from third-party suppliers. With vertical wallets, the wallet provider is the service supplier itself and integrates only its own services within the wallet.

It is also possible for mobile wallet services, such as mobile ticketing, that are running within an autonomous wallet to be decoupled and integrated within other wallets. That is how transport companies can launch their own wallet for mobile ticketing and also allow their customers to save their mobile tickets within the wallets of third-party suppliers.

Integrating services into a mobile wallet

In general, wallets have a platform character, by which I mean that their value proposition includes the integration of various services into a single application. Ideally, the whole content of a physical wallet can be reproduced within a mobile wallet. That is why customers will likely use only a few wallets, or optimally just a single wallet that offers a broad range of advantageous features and services. The chances of success rise significantly for wallet providers that hold a neutral or monopolistic position within the market or an industry, and allow the integration of services from competing service providers like banks into their wallet.

For example, it would be quite difficult for a bank to establish a horizontal proximity wallet for credit card emulation. Banks are not neutral in this industry, and other banks will be reluctant to integrate their services into the wallet of a competitor. Telecommunication, transportation, logistics or technology companies that act as neutral players within the financial sector have considerably better chances of integrating various payment cards from different banks into their wallet.

A third option: Provide third-party services instead of a wallet

The subsequent figure shows an evaluation of the business potential of different mobile wallet approaches for stakeholders in key industries. Besides the vertical and horizontal approach, for those providing wallet services, like banks and transport companies, a third viable approach is to provide their services only to other wallet providers and not offer their own wallet (third-party services). Furthermore, joint ventures can be built among the stakeholders to provide a neutral wallet in an ecosystem. Such an approach has been followed in China by the major banks and mobile network operators (MNOs), or in the United States by the three major MNOs (Softcard).

The future market development of wallets and their chances of success cannot be seriously forecasted. Many providers are surging into the market with different kinds of mobile wallet solutions. Probably just a few will achieve the critical mass to endure over the long term. Those most likely to persist will have a clear strategic roadmap and objectives, as well as the flexibility to react to instant market and ecosystem changes, which might happen in this new and immature market at any time.

Recommendation on a mobile wallet strategy

To ensure a fast and successful market entry, I recommend that companies develop a goal-oriented and clearly defined mobile wallet strategy. How do you build such a strategy?

To begin with, you need to select and evaluate strategic opportunities and their resulting effects on your business model. Business partnerships and secure element integration must also be evaluated in terms of how they fit the strategic goals. And all of this should be built upon market impact analysis.

You should define your goals precisely as soon as you start to develop an enterprise mobile wallet strategy. Have a flexible action plan and roadmap for your strategy. Do a detailed analysis of the market and potential partners, conduct comprehensive feasibility studies and evaluate your opportunities and risks.

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What is a digital wallet and how can it help your small business?

What is a digital wallet.

A digital wallet is an application that runs on mobile devices and computers and allows users to make financial transactions through online channels. Individuals and companies can securely store payment information –  including credit card, debit card, or bank account information – and passwords in their digital wallets, allowing them to pay without writing a paper check or pulling out a physical credit card.

See how a digital wallet can help simplify running your business

If you’re still writing paper checks a digital wallet can help you move toward digital payments

It can be hard to make the transition from traditional paper checks, but a digital wallet is a more cost-effective, smarter way to make payments so it’s worth looking into a digital payments tool for your company.

How does a digital wallet save my business money?

All the expenses that come from writing, mailing and tracking paper checks are eliminated when a company begins using a digital wallet. These expenses include postage fees, the cost of tracking lost checks, and perhaps most importantly, administrative time and attention. Over the course of months and years, these costs add up to significant and unnecessary financial disadvantages. A product like WEX’s Flume, a digital wallet built for small businesses, can simplify the way your company makes payments, and in doing so can strengthen your company’s stability and improve your bottom line.

Alleviate pressure on your AP or AR department with a digital wallet

An accounts payable (AP) or accounts receivable (AR) department within a small business may consist of just a few employees, or even in some cases just one employee. These folks work very hard to keep all your finances in order. They’re doing a lot of their work manually and are constantly on the lookout for solutions to a variety of their accounting needs. What’s great about a digital wallet for your small business is that it will help you alleviate some of the pressure on your accounting staff by allowing one-stop shopping for all your business’s AP and AR needs. Flume, for example, provides a singular solution to managing your finances. Many of the digital accounting technologies on the market are hodgepodge, separate AP and AR systems which are feature-bloated and effectively create problems by requiring a long and convoluted learning process. Flume offers one solution targeted to businesses just like yours.

If your business, like many, is still using paper checks, Flume could help you easily and seamlessly join the world of digital payments

Studies show that 80% of businesses still use paper checks for invoices. For the typical small-to-medium business (SMB) that issues 450 invoices per month at an estimated cost of $15 per invoice, it costs $80,000 a year just to manually process invoices. Flume alleviates these issues by offering a transparent, digital payments platform that eliminates the need for manual AP and AR processes.

What is special about Flume as a supplier payment platform version of the digital wallet?

Flume is a one-stop shop to manage the financial part of your business. Rather than having myriad ways to make payments with the digital wallets that have cropped up over the last decade, Flume provides businesses with a way to process all their payments – both AR and AP – on one platform. With Flume you can make any payment and you have a whole suite of options for putting through a transaction. Physical checks are still part of the equation, but only if you wish. You can start to move into digital payments using digital checks, ACH, and FlumePay.

Flume is the one of the only digital wallets on the market that offers this full suite of products including the physical check which makes it the most suited to a small business looking for a way to transition from paper check to digital payments at its own pace. Flume also allows businesses and their suppliers to see every transaction between them, allowing for more transparency and more control.

Why is it important that Flume offers physical checks as part of their digital payments platform?

If your suppliers are not yet ready to jump directly into digital payments, Flume allows you to still make payments by paper check. This works by way of a digital payment being emailed to your supplier in the form of a printable check. Your supplier receives this email payment from you, can print the email and bring that printable check to the bank to make their deposit. This way, information about every single payment your company makes is stored in one place electronically while also keeping your suppliers happy. Suppliers can also choose direct deposit and have those checks deposited automatically into their bank accounts which is another nice option. Through Flume, users can also choose to send a physical check by mail and suppliers will receive that check within 3-5 days.

How does using a Flume digital check benefit your business?

By sending a printable digital check you gain the benefits of swift insights into the status of that check. Instead of writing a physical check and putting it in the mail, with Flume you create that payment within the application, automatically generating a record of the payment, and creating the physical check in one fell swoop. Because this work is done in a digital payments tool, and within a single platform, all the data tied to that check is available to your business. You can see the status of that check as it is delivered, opened, and printed out. As opposed to the zero-visibility status once a physical check is sent via USPS, printable digital checks benefit both your small business and the vendor you’re paying.

How do I sign up for a Flume digital wallet? In four simple steps!

Signing up for a digital wallet is as easy as one, two, three, four! With Flume, for example, all you need to do is sign up, add an account, select a supplier and send a payment! Before you know it, you can be making payments and getting paid digitally.

How to sign up for a Flume digital wallet in four simple steps!

What if I don’t want to give my bank information when I sign up for a digital wallet?

When you join Flume, your company does not have to share its bank details. Instead, you will log into your bank within the Flume tool, bypassing unnecessary security risks. WEX uses a widely used and highly respected third-party platform called Plaid. Plaid provides the connection between Flume and your business’ bank account. As part of the onboarding process with Flume you’ll be asked how you want to pay and get paid – this loads a Plaid set of screens and from there you are able to log into your bank account. Plaid is FDIC approved, and their platform ensures the connection between WEX and your bank account is extremely secure, private, and safe.

You can also skip this step initially and take a look around the tool before deciding to join Flume. You will be able to start making and receiving payments as soon as you connect your bank account.

What is FlumePay?

FlumePay allows businesses to make and receive payments directly from account to account within Flume’s small business digital wallet program.

Why did WEX create Flume?

WEX cares most about simplifying your business processes. When we recognized that a lot of our small business customers weren’t finding a payments solution on the market specific to the size and complexity of their business we decided to do something about it. We went to our small business owners and spoke with them about what they needed and how we could help. Enter Flume, a payments platform specifically designed to cater to niche small business owners like you. Flume is your answer for how to simplify your payments processes with an easy-to-use, intuitive tool specifically for businesses who might not already be doing a lot digitally.

Learn more about Flume here.

To learn more about WEX, a growing and global organization, please visit wexinc.com .

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How to Write a Successful Digital Bank Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for digital bank businesses that want to improve their strategy or raise funding.

A well-crafted business plan outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the critical elements every digital bank business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Digital Bank Business Plan?

A digital bank business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a critical document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Digital Bank Business Plan?

A digital bank business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Digital Bank Business Plan

The following are the critical components of a successful digital bank business plan:

Executive Summary

The executive summary of a digital bank business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your digital bank company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your digital bank business. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company or been involved in an entrepreneurial venture before starting your digital bank firm, mention this.

You will also include information about your chosen digital bank business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a digital bank business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the digital bank industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a digital bank business’ customers may include:

• Small businesses that need online banking solutions
• Start-ups and tech companies that are looking for innovative ways to manage their finances
• Freelancers and consultants who need a simple way to get paid and track expenses

You can include information about how your customers decide to buy from you and what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or digital bank services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your digital bank business may have:

• 24/7 customer service
• Higher deposit limits
• More locations
• Better mobile app

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your digital bank business via a PR or influencer marketing campaign.

Operations Plan

This part of your digital bank business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a digital bank business include reaching $X in sales. Other examples include expanding to new markets, developing new products and services, and hiring new personnel.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific digital bank industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities, you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Digital Bank Firm

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Digital Bank Firm

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include ash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup digital bank business.

Sample Cash Flow Statement for a Startup Digital Bank Firm

Finally, you will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Create Your Digital Bank Business Plan

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your digital bank company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Now that you know how to write a business plan for your digital bank, you can get started on putting together your own.  

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

B500bn digital wallet handout plan needs 'independent monitors'

PUBLISHED : 28 Apr 2024 at 18:52

WRITER: Aekrach Sattaburuth and Onnucha Hutasingh

More petitions calling for intervention by independent organisations in the government's digital wallet handout scheme have been lodged, with critics saying the 500 billion baht scheme may jeopardise the country's fiscal security if it doesn't go well.

Pisit Leeahtam, a Democrat Party list-MP and former deputy minister of finance, petitioned the State Audit Office (SAO) on Friday to determine whether the scheme could breach the State Fiscal and Financial Discipline Act.

The SAO is also being urged to take action to ensure the scheme is legitimate, worth investing in and able to avoid unnecessary fiscal damage, he said.

Political activist Ruangkrai Leekitwattana said he petitioned the National Anti-Corruption Commission (NACC) to probe a cabinet decision made on Tuesday to approve the scheme.

The cabinet’s resolution was reached despite concerns by several organisations over its legality, including the Budget Bureau, Council of State, National Economic and Social Development Council and Bank of Thailand, he said.

Prior to last week’s cabinet decision, these organisations submitted documents highlighting concerns about the plan . The activist wants the NACC to find out whether the government is truly ready to implement the scheme considering the available resources and its commitment to anti-corruption.

In terms of risk management, for instance, the Ministry of Finance and the Bank for Agriculture and Agricultural Cooperatives (BAAC) are required under the State Fiscal and Financial Discipline Act to put in place a contingency plan to deal with losses that might occur if the scheme fails, he said.

The government plans to use funds from the BAAC, worth 172 billion, as one of the three main sources of funding for the scheme.

Niwatchai Kasemmongkol, NACC secretary-general and spokesman, said the NACC may form a sub-committee to study the details before making any further suggestions to the government.

The NACC identifies obvious signs of corruption in government policy, without having to wait for a formal petition to be submitted, he said. He was referring to the cabinet’s April 23 resolution endorsing the scheme.

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10,000 baht digital money handout

Handout funding to diminish spending on other projects, the thorny issue of digital wallet funding, phumtham plays down central bank warning on handouts.

Thailand's $13.5 Billion Household Stimulus Plan Gets Cabinet Approval

Thailand's $13.5 Billion Household Stimulus Plan Gets Cabinet Approval

FILE PHOTO: A general view of Khlong Toei fresh market during busy hour in Bangkok, Thailand, September 8, 2019. REUTERS/Soe Zeya Tun/File Photo

BANGKOK (Reuters) -Thailand's 500 billion baht ($13.51 billion) "digital wallet" stimulus policy gained cabinet approval on Tuesday, Prime Minister Srettha Thavisin said, clearing another hurdle for the signature policy of the ruling Pheu Thai party.

The handout would give 10,000 baht ($270.20) to 50 million Thais to be spent in their local communities over a six-month period. It aims to spark growth in Southeast Asia's second-largest economy as it struggles with soaring household debt.

The scheme is expected to add 1.2 to 1.8 percentage points to economic growth in 2025, government spokesperson Chai Wacharonke told a media briefing.

Earlier this month, the government said the handout scheme would lift growth by 1.2 to 1.6 percentage points and help the economy expand by at least 5% next year.

The launch of the plan, Pheu Thai's key platform in the 2023 election, had been delayed to late 2024 due to a lack of funding and concerns about the impact on public debt.

The government said earlier this month it would finance the policy from the 2024 and 2025 budgets and use capital from the state-owned Bank for Agriculture and Agricultural Cooperatives.

It has rejected criticism from some economists and experts, including two former central bank governors, that the policy was fiscally irresponsible.

Academics and opponents have also questioned the legality of tapping into a state bank's coffers to finance the handout. 

Deputy Finance Minister Julapun Amornvivat reaffirmed a fourth-quarter launch date for the policy, and said experts had been consulted on the legality of the plan. 

"There will be stimulus in job creation, economic activity and investment," he added. 

Thailand's economy unexpectedly shrank 0.6% in the final quarter of 2023 from the third, prompting the state planning agency to cut its 2024 growth outlook to between 2.2% and 3.2% from an earlier projection of 2.7% to 3.7%.

Growth in 2023 was 1.9%, slower than expected and less than 2.5% growth in 2022.   

($1 = 37.0100 baht)

(Reporting by Chayut Setboonsarng and Panarat Thepgumpanat, Editing by John Mair and Martin Petty)

Copyright 2024 Thomson Reuters .

Tags: Thailand

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• Best identity theft protection
• Best overall
• Best for complete coverage
• Best for value
• Best for families
• Best for flexibility
• Best for basic coverage

How we review identity theft protection services

Do you need identity theft protection here are the best identity theft protection services worth considering in 2024..

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

The best identity theft protection is a service that meets your needs at the price you're willing to pay. While our system for rating these services is more nuanced than this, at the core of our rating system is the balance between the features provided and the cost of those features. 

How to choose an identity theft protection service

The best identity theft protection service is the one that meets your needs at a price you can afford. For example, if your identity has been stolen before, you're more likely to be targeted again. You may need to arm yourself more heavily than you would otherwise with features like dark web monitoring, public records monitoring, and identity theft recovery.

On the other hand, if you're concerned about your children, consider looking for identity protection that offers features for children. Most identity theft protection services in our guide provide features specifically for children, like Aura's hate speech monitoring or IdentityForce's Childwatch, which includes social media monitoring and Child Credit Activity Monitoring.

Even if you can't find a perfect plan that aligns with your needs, some protection is better than none. Most services also offer a free trial, so you can test them before buying. Look for a service with security tools you'll actually use. You may even choose a service for superficial reasons (like a layout or color scheme you prefer). If one service inspires you to be more proactive about protecting your information, that's a selling point.

Identity theft protection cost

The monthly cost of the identity protection services on this list ranges from $12 to $29.95 for their individual plans, though you can find services with prices outside this range on either end. Some of these services will offer family plans at a discounted rate.

Protecting your identity and other sensitive personal information is like protecting your home against fire. Most houses have fire prevention measures baked into their design, including fire-resistant materials, landscaping precautions, and fire hydrant access. You should have early detection and alert systems like smoke, heat, or flame detectors and suppression systems like fire extinguishers and sprinklers. Hopefully, you observe basic fire safety protocols like storing flammable materials properly and not leaving open flames unattended. Finally, you should have fire insurance to protect yourself financially.

None of those measures guarantees your house won't catch fire, but collectively, they mitigate the risk and extent of fire damage. Similarly, identity theft protection doesn't guarantee your personal information will remain secure, but it reduces the likelihood you'll experience the worst outcomes of having your identity stolen. 

Like fire protection, identity theft protection isn't a single measure but an array of complementary measures designed to safeguard your personal information.

Types of identity theft protection

Standard features offered by identity theft protection companies generally fit into one of the following three categories:

• Monitoring and alerts — Given how quickly identity thieves put stolen data to ill use, early detection and warning are critical to minimizing damage. Identity theft detection companies monitor your personal information for suspicious activity and notify you when something is amiss. What you get varies among companies and plans but usually includes monitoring of credit reports, social security numbers, property and court records, and more.
• Security tools — While security measures aren't foolproof, your data is less vulnerable with some of the features that identity theft protection services offer. This includes tools like antivirus and malware protection, a virtual private network (VPN) for safe browsing, and password management.
• Recovery — When your personal information has been compromised, identity theft protection can help you limit further damage by freezing your credit and exposed accounts. It can also help you recover your identity and cover related expenses, though it's unlikely to reimburse direct losses resulting from fraud. 

Identity theft protection and credit monitoring

One identity protection feature to prioritize is reporting from all three major credit bureaus ; many entry-level plans only monitor one bureau, leaving room for suspicious activity to slip through unnoticed. You should also look for a service that gets audited regularly by independent security experts and deletes your information when you cancel your subscription (rather than holding onto it indefinitely).

How to report identity theft

If you suspect your identity has been stolen, your first action should be to freeze your credit reports to prevent the thief from applying for credit in your name. It's free and won't damage your credit. You can always unfreeze your reports later when the dust settles. 

Your next steps to reporting identity theft depend on the nature of the identity theft and any fraud that may have already occurred:

• File an identity theft report: IdentityTheft.gov is a Federal Trade Commission program that will help you create a recovery plan and generate an identity theft report that you can use later as documentation. You can file a report over the phone at 877-438-4338, though you won't receive that identity theft report.
• Report the fraud to involved companies: Notify any banks, credit card issuers, or other companies involved in your identity theft case. The sooner you do this, the better. If you don't report within a certain timeframe, you could be liable for any debts incurred.
• Notify the credit bureaus: Call at least one of the main credit bureaus to let them know your identity has been stolen. The Fair Credit Reporting Act requires credit bureaus to notify the others, and you'll receive a 90-day initial fraud alert , which means creditors have to take reasonable steps to verify the identity of anyone applying for credit under your name. Later, with an identity theft report, you can extend the fraud alert to seven years.
• Contact law enforcement: Depending on the situation, you may want to file a police report, especially if you know who stole your identity. Some creditors may also require you to file a report with law enforcement.

If your Social Security number has been compromised, and you continue to have issues with identity theft, you may be eligible to get a new Social Security number . However, the requirements for a new Social Security number are high. You need to have been repeatedly targeted by identity thieves or in situations of harassment, abuse, or life endangerment. You'll need to contact your local Social Security office and arrange an in-person appointment.

How to prevent identity theft

While an identity protection service will make it harder for hackers and identity thieves to use your identity, Eva Velasquez, founder and CEO of the Identity Theft Resource Center, says that "hiring a service does not mean you can or should abdicate all responsibility for good identity and cyber hygiene." She says that many financial organizations may refuse to reimburse victims if they determine the victims didn't take sufficient care of their credentials and accounts.

Because identity theft is often a crime of opportunity, taking steps to reduce the risk of identity theft can go a long way toward preventing it entirely. You can do a lot to protect your personal information by practicing good data hygiene and staying vigilant about how your information is used and distributed. Simple steps like using strong passwords and antivirus software, securing your mail, and regularly reviewing account statements for suspicious activity will help you prevent and detect identity theft.

You can also look into various products beyond identity theft protection to prevent identity theft. You ask the credit bureaus to  freeze your credit  or place a fraud alert on your  credit reports , preventing identity thieves from borrowing money using your credit. These are free services offered by credit bureaus.

Those practices, combined with well-rounded identity theft protection, will significantly reduce the risk of having your personal information compromised.

Compare the best identity theft protection services

Best overall: norton 360 with lifelock select.

Cost:  $17.99 monthly or $179.99 annually

LifeLock is an identity theft protection service operated by Norton, one of the leading brands in cybersecurity. Unfortunately, LifeLock falls short compared to the other products included in this guide. However, the service gains a lot of value when paired with Norton 360, Norton's cybersecurity protection plan. 

Norton 360 with LifeLock offers three plans: Standard, Advantage, and Ultimate Plus. The Standard plan offers the most value for its price and a sizable first-year discount. However, for more serious identity protection, it may be worth upgrading to one of the advanced plans. 

You can read our LifeLock review here. 

Best for complete coverage: IdentityForce UltraSecure+Credit

Cost:  $29.95 monthly or $299.50 annually

Ultra Secure+Credit is a product of TransUnion, but the +Credit plan also covers Experian and Equifax. It offers broad monitoring capability, including social media accounts, mobile device scanning, and dark web data analysis. It can also alert you of suspicious activity in your banking and investment accounts, in addition to credit-related fraud alerts.

On top of monitoring, Ultra Secure+Credit also offers cybersecurity features such as an online vault for storing sensitive digital documents and a VPN. Ultra Secure+Credit also offers an entry-level plan with most of the same features apart from credit monitoring, which is a good fit for anyone who already has that base covered.

While standard pricing is $29.95 a month, you can rummage around online for IdentityForce discounts. In the past, we've found lower prices by Googling "IdentityForce discount."

You can find our IdentityForce review here.

Best for value: IDShield 3 Bureau Individual Plan

Cost:  Starting at $14.95/month

IDShield offers comparable protection to Ultra Secure+Credit at a lower price if you're paying monthly. You'll get all the essentials like three-bureau credit monitoring, alerts, and various cybersecurity and device protection tools. The few features IDShield lacks (like junk mail removal) aren't essential, so going without them is a reasonable tradeoff if cost is a priority.

One negative of IDShield is that it tends to get lower marks for its interface; if that deters you from using the security features, then whatever you save in monthly fees is nullified. IDShield is a well-rounded plan, but you should test it out with the 30-day free trial.

You can find our IDShield review here.

Best for families: Aura – All-In-One ID Theft Protection

Cost:  $15 monthly or $144 annually

Aura provides fewer monitoring services than Ultra Secure+Credit and IDShield — it doesn't include social media, for example. It still offers well-rounded protection with monitoring of all three credit bureaus and the standard security tools, as well as email aliases to reduce spam and exposure to data breaches.

Aura All-In-One shines brightest with its couple and family plans, which provide the same protections for additional members (children or adults) at a heavily discounted cost per person. Aura's family plan also offers parental controls for mobile devices. 

You can find our Aura review here.

Best for flexibility: Identity Guard

Cost: $8.99 to $29.99 monthly for individuals, $14.99 to $39.99 monthly for families

Owned by Aura, Identity Guard has three core plans: Value, Total, and Ultra. With a family version for each of these tiers, Identity Guard has six plans overall. Even without the annual discounts applied, Identity Guard's Value plan is the cheapest service on this list. Its more expensive plans are still competitively priced compared to other services on this list, though you'll get a much better deal if you commit to an annual plan. 

One thing to note is that Identity Guard reserves its White Glove fraud resolution service for its Ultra plan, significantly reducing the utility of the Value and Total plans.

You can find our Identity Guard review here. 

Best for basic coverage: PrivacyGuard Identity Protection

Cost: $9.99 per month

PrivacyGuard has some gaps in its identity theft protection . Notably, its credit monitoring feature is a completely separate plan from its identity theft coverage unless you purchase the most expensive bundle. However, we're just recommending the identity protection service alone, as you can fill its credit monitoring gap using other tools that are available for free.

PrivacyGuard provides many services that are harder to replicate without paying, like dark web scanning and public records monitoring at lower prices than its competitors. You'll also get tools to secure your browser and keyboard. PrivacyGuard also provides bank account and credit card monitoring, which are surprisingly scarce features among identity protection services.

You can find our PrivacyGuard review here. 

We interviewed identity theft experts to inform our picks for the best identity protection services. These answers have been edited for concision. Here's what they had to say:

Is it worth it?

Eva Velasquez, CEO and president of the Identity Theft Resource Center:

Paid identity protection services can have value for individuals and families that have the financial means to pay for the services. These services can take some of the leg work out of monitoring your identity and the recovery process should an identity crime occur. I often use the analogy of hiring a pet groomer or grooming my dog myself. I can bathe and groom my dog for "free," but I do have to consider the cost of the shampoo, tools, water, and my time versus hiring someone to do it for me. Both are legitimate ways to meet the need but depend on my personal preference.

Before you purchase, make sure that you don't already have this benefit available to you. Some homeowners or renters insurance plans have riders that provide this coverage. Some employers offer these services as an employee benefit for free or at a discount. Some membership organizations you already belong to may also offer this as a benefit at a reduced cost.

Jeanne Kelly, credit coach and founder of The Kelly Group:

Absolutely. It is crucial to recognize that even if you are cautious about sharing your personal information, it is still stored in various databases, such as those of financial institutions, schools, and medical offices. Therefore, having identity theft protection ensures that you are promptly alerted in case of any issues and provides professional assistance in restoring your identity.

Paul Kim, associate editor of credit scores at Business Insider: 

Identity protection can be a nice thing to have for peace of mind. However, most people don't need to spring for the fanciest, most expensive plan out there. Some of the cheaper plans, plus a little vigilance on your part, will often do the trick. 

How do I determine the level of identity protection I need?

Ask yourself the following questions: How many people do I intend to cover? What are the ages of the individuals needing services? Do they have access to, and can they make effective use of digital platforms? How digitally engaged are they? Make sure you purchase coverage that meets your individual needs.

For example, if you purchase a family plan with features including cyberbullying monitoring, is that something you currently need? Are your children of an age that they are engaged online, and this feature is helpful? If you have plans available through an employee benefits program or insurance policy, ask your benefits administrator or insurance broker for assistance in determining the level of coverage that is most suitable for you.

Kelly: 

Conduct thorough research to understand the available options. It is not sufficient to rely solely on receiving alerts. It is essential to find an identity theft protection service that not only notifies you but also offers robust support in resolving identity theft issues. Think of it as having an alarm system that also sends help when triggered. Look for services that provide the expertise of private investigators to assist you throughout the identity restoration process.

When shopping for identity protection, you should think about how much of a risk identity theft poses. Obviously, everyone can be targeted, but some people are at higher risk. Certain states have higher rates of identity theft than others. Additionally, people who were victims of identity theft are more likely to be targeted than those who have never had their identities stolen.  

What are the most important identity theft protection features?

Transparency. This is an individual choice. The important features are going to vary based on the individual. However, a service that is transparent about what it covers and what it does not is key. Make sure you read all the information to understand what is covered, how the service is provided, and the limitations of the service, if any. Read the terms of any insurance plans carefully and ensure you understand what losses are actually covered and what your duty of care or other obligations are to seek reimbursement for losses.

One crucial feature is the ability to grant power of attorney or authorization for someone else to handle the intricate process of restoring your identity. Dealing with identity theft can be incredibly time-consuming, often requiring hundreds of hours. By having experts handle the work on your behalf, you can save valuable time and ensure that the restoration process is handled effectively. It is crucial to proactively obtain identity theft protection before any issues arise.

Two features I look out for are dark web monitoring and court records monitoring because it's difficult to replicate these yourself. If you're looking for basic identity protection that may not offer every type of monitoring, ensure that the service will at least monitor the dark web and court records. 

What makes an identity theft protection service good?

In addition to my response above, also read consumer reviews and look at third-party accreditation sites such as the Better Business Bureau. Reading reviews will allow you to determine if there is a pattern of behavior that demonstrates poor customer experience. While no company is going to be perfect, seeing how they resolve customer complaints and issues will be useful in making your determination to do business with them.

A good identity theft protection service should monitor multiple aspects of your identity, including your social security number, driver's license, passport ID, medical card, social media accounts, and address changes with the postal service. Remember, identity theft encompasses more than just credit-related fraud. For instance, if someone gains access to your medical ID or driver's license number, they can exploit it to receive medical services or cash checks under your identity. Therefore, ensure that the service you choose monitors these essential areas. Additionally, in the event of an identity theft incident, make sure the service provides comprehensive support for identity restoration.

The identity protection services I pay particular attention to will offer solutions for the before, during, and after of identity theft. So, it'll offer features that protect your identity before any theft occurs, like cybersecurity measures and VPNs. The identity protection service will also provide identity monitoring to alert you when identity theft occurs. Lastly, a good identity protection service will have restoration experts who will guide you through the process of recovering your identity. Ideally, they'll do most of the work for you.

How we rate identity theft protection services

We rate services on a scale from one to five stars, with five being the highest. We apply these ratings to the overall service and the individual plans it offers. 

Provided features (45%)

Most identity theft protection services will boast a long list of features that they provide. You will likely never notice some of these features running in the background, such as home title monitoring. Others, you'll be able to achieve for free elsewhere, such as credit freezes .

When we look at a service's features, we pay attention to particular features that make or break a protection service. We also look at any unique features that a service provides, making it stand out from other services.

Fraud resolution (20%)

Identity monitoring matters little if a service doesn't also provide tools to help you recover your identity . That's why it's so important that your identity theft protection service has some form of fraud resolution. Many services also offer lost wallet protection, which assists you in making all the necessary cancellations and replacements that come with losing your wallet or having it stolen.

Ideally, a service will provide a fraud resolution expert dedicated to your profile if dealing with a stolen identity. This person will help you navigate the process of recovering your identity and assets. They'll also help you contact the three major credit bureaus and any other involved parties to report identity theft .

It's also important to ensure that your identity theft protection service has some form of identity insurance that will help you cover any monetary losses due to fraud.

Dark web and court records monitoring (10%)

While some features that identity theft protection services perform can be done on your own or found in other services, dark web monitoring and court records monitoring are particularly hard to find elsewhere.

Dark web monitoring scans the dark web (which you likely do not know how to access) to see if anyone is selling your personal information. Court records monitoring scans public records for your information in case anyone has given your information in their criminal case. 

Credit monitoring capabilities (5%)

Credit monitoring is a cornerstone of all identity theft protection services, alerting you of any changes to your credit report. Any unexpected updates in your credit report, like a new line of credit , are likely signs of identity theft. 

While the presence of credit monitoring capabilities is important in securing your identity, we've deprioritized it in our ratings. This is because you can find free credit monitoring services that will provide you with the same monitoring and credit reports that you'd pay for with some of these services. You can also request a  free credit report weekly from each of the three credit bureaus. 

You can find our list of the best credit monitoring services here. 

Unique features (10%)

The truth of identity protection is that most services are very similar to each other in what they offer. What distinguishes certain services are standouts that catch our eye.

For example, PrivacyGuard identity theft protection service includes a credit score simulator, which will give you a rough estimate of how your credit score will change with certain actions, such as a new loan. More cybersecurity-focused services, will include a VPN, secured document storage, and anti-malware protection.

Some services that offer family plans will also have parental features, such as social media monitoring. Some services will also monitor your children's online activity for cyberbullying or hate speech. Other plans, such as Identity Guard , feature an optimized mobile experience, providing users with peace of mind while on the go.  

Price of service (45%)

Tiered plans (35%)

Ultimately, many identity theft protection services offer very similar features. Because so many services often perform very similar functions, the main distinguishing factor between these services is how much they cost. Many services will spread their array of features across different plans that get progressively more expensive the more protection it offers. 

For example, many services will include credit monitoring for one bureau in their basic tier and reserve three-bureau monitoring for their premium tier. Other services may give you dark web monitoring in the basic tier but withhold court records monitoring for higher tiers.

We prefer services that include their entire catalog of features in one overarching plan, like Aura identity theft protection. However, this doesn't necessarily mean that tiered services are bad. If you only need to reduce the risk of identity theft to a certain level, there's no need to pay a premium price when the basic plan will suffice. 

Group plans (10%)

Family plans and couples plans will give you and your loved ones the same level of protection for a discounted price. These services, such as those offered by IdentityIQ , also come with family-specific features tailored to monitoring your children's identity and online activity. 

Customer support (10%)

While price and features are the two most important factors we use to judge an identity theft protection service, we also recognize these services as businesses that need to be responsive to their customers. 

When we talk about customer support, we're looking aspects like cancellation policies, annual membership discounts, and free trials. We also look at a business's Better Business Bureau score to evaluate how they respond to customer complaints. 

We also look to see if there are any necessary qualifications to enroll in a service. Some credit cards have identity theft protection  that are only available to their cardholders, such as American Express CreditSecure. Another example is Complete ID, which is only available to Costco members.

What to know about identity theft protection service ratings

Our system for rating identity theft protection services balances the price of the service with the features that the service provides. It also acknowledges that these services are businesses that must be responsive to customers. 

While we can analyze these services on a tangible, quantifiable level, the best identity theft protection service is one that you'll actually use. A service may not have the most features, but if that service inspires you to be more proactive about protecting your information, that's a selling point. The next step is finding out how to get identity theft protection  that works for you.

Included in our guide on the best identity theft protection services is our expert panel, consisting of experts in identity theft protection and credit. Eva Velasquez, CEO of the Identity Theft Resource Center and one of the members of our expert panel, recommends considering several questions about your specific situation. You should consider how many people you're covering, their ages, and how digitally engaged they are. "Make sure you purchase coverage that meets your individual needs," Velasquez says.

Identity theft protection services can protect you from fraud that can cost you thousands of dollars.  If your identity is stolen, you can lose money and time and may find it really difficult to obtain loans, credit cards, and other financial products. 

Identity theft services can help with the financial costs associated with identity theft incidents. It can also help you report the crime and may even catch it earlier to reduce the amount of damage that identity theft can inflict. 

Child identity theft can damage your child's financial future. Aura has a comprehensive family plan that allow parents to protect their children's identity and monitor their online activity. Aura's family plan covers five adults and unlimited children.

All the identity protection services above will apply to all demographics. That said, it might be worth your time to look into LifeLock, which offers a sizable discount to AARP members for their first year. 

The best identity theft protection service depends on what you're looking for in identity protection. That said, Norton 360 with LifeLock is the best overall identity theft protection service for its cybersecurity functions and identity protection. It's also on the more expensive side of this list, so consider other options if you want a cheaper service.

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Reinsdorf offers to open wallet for new sox stadium.

Greg Hinz is a columnist for Crain’s Chicago Business. He joined Crain’s in 1996 and was previously political editor of Chicago magazine and political editor and columnist for the Lerner Newspapers chain.

With the Chicago Bears ramping up their campaign for a new lakefront stadium, White Sox owner Jerry Reinsdorf is upping his ante for a second proposed new stadium in the South Loop that he wants a state agency to build and lease to the Sox.

A source close to Reinsdorf said that, despite earlier media reports indicating that Reinsdorf wants the Illinois Sports Facilities Authority to front the entire $1.25 billion said to be needed for the new ballpark, “We never said there would not be White Sox investment in the potential development.”

“To the contrary,” the source continued. “We have been looking at several scenarios which would, under the right conditions, involve significant private investment. But as everyone knows, this is an evolving situation. And once we have a clear, definitive path, we will have a clear, definitive commitment.  

The source added, “We are aware of the importance of the overall package, beginning with the incredible benefits a new stadium at The 78 would bring to the city.”

The source did not define “significant.” But people close to negotiations say Reinsdorf has mentioned a figure of $200 million or more.  

The 78 property at Roosevelt Road and Clark Street is owned by Related Midwest, which would develop the stadium and promised residential and commercial space in a move it says would give a jolt of energy to an underdeveloped area skirting the South Branch of the Chicago River. Reinsdorf previously has said he intends to invest in the residential and commercial portion of the project, but has not discussed injecting his own funds in the ballpark itself.  

Under his proposal, the ISFA would build and own the stadium. The team would pay rent, but construction costs would be financed by an existing tax on Chicago hotel stays and by growth in sales-tax receipts in the stadium area.

The Bears also are believed to be seeking to tap the hotel tax, but have offered to put up $2 billion toward the estimated $4.2 billion cost of the stadium on a parking lots just south of Soldier Field and related infrastructure. Sources close to the deal say the Bears would get that money not from the pockets of the team-owning McCaskey family but mostly from fans in the form of seat-purchase licenses, from the sale of naming rights to the new facility and from a stadium-construction fund operated by the National Football League.

Major League Baseball has no similar fund, and Reinsdorf’s team plays at least 81 home games a year compared to a minimum of 10 regular and preseason games for the Bears. But the NFL team lately has been quicker on the public relations draw, announcing today that it will disclose details of its proposal at a high-level VIP event at Soldier Field on April 24.

Reinsdorf’s offer to open his wallet also comes after a recent statement from Mayor Brandon Johnson that the billionaire needs to “put some skin in the game” to advance his stadium plan. At the same time, Johnson has had a series of what are described as cordial talks with Bears owners and officials about their plans.

It’s not clear whether the financing frameworks being advanced by either team will be sufficient to satisfy Gov. J.B. Pritzker, who harbors national political ambitions and has said he’s leery about giving taxpayer subsidies to wealth sporting team owners.

The Bears have hoped to pass a needed authorization measure in the spring session of the General Assembly. But that increasingly appears to be a long shot, with lawmakers girding for fall elections and preparing to adjourn for the summer around Memorial Day.

The Bears at one point seemed set on moving to Arlington Heights and purchased the site of the former Arlington International Racecourse. But the team appears to have soured on that in favor of a Chicago lakefront location.

Reinsdorf earlier told Crain’s the team’s current home at Guaranteed Rate Field in Bridgeport has not worked out and it needs to move to be successful. Reinsdorf, 88, said he has no plans to sell the team but indicated that his son might well do so after he dies, unless the team has a long-term lease that would keep it in Chicago.

More in Sports

Bears draft standout USC quarterback Caleb Williams with No. 1 pick

It marks the first time the Bears have taken a quarterback at No. 1. It was just the third top pick in the team's history.

Arlington Heights mayor on the Bears: 'We're happy to be Plan B'

Arlington Heights hasn't given up hope that the Chicago Bears will eventually see the former Arlington International Racecourse as the best option to fulfill the team's wish for a state-of-the-art stadium.

Chicago Sky not ruling out games at United Center, Soldier Field: 'Anything is possible'

A Sky-Fever game at Soldier Field would not be the first time a Chicago women's basketball team has played against Caitlin Clark in an outdoor football stadium.

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DFCAPP Exchange contract trading 2024 development plan: pioneering innovation and leading the future

DFCAPP, a leading cryptocurrency exchange in the digital world, brings a cutting-edge platform, empowering individuals to trade cryptocurrencies with local support.

London, UK - April 26, 2024 —

With the rapid growth of the digital asset market, contract trading, as a key component of digital asset trading, is becoming the first choice for investors and traders. 

As one of the leaders in the field of digital asset trading, the contract trading department of DFCAPP exchange is committed to promoting the development of digital asset contract trading and providing users with a full range of contract trading services. The following are the core contents of the 2024 development plan for DFCAPP exchange contract trading:

Product innovation and diversification:

• Launch more diversified and innovative contract products covering different digital assets and trading strategies.
• Continuously optimize the characteristics of contract products to meet users' needs for flexibility, leverage ratio, trading cycle, etc.

Technology upgrade and platform optimization:

• Carry out continuous technical upgrades to improve the performance and stability of the contract trading system and ensure the smooth operation of the trading platform.
• Optimize the trading interface and user experience to improve the convenience and usability of trading operations.

Liquidity improvement and deep mining:

• Strengthen cooperation with liquidity providers to improve the liquidity of the contract trading market and reduce transaction costs.
• Explore the depth of the contract trading market, enrich the depth of market transactions, and improve the stability and activity of the market.

Global market expansion and international layout:

• Strengthen cooperation with international partners and expand the global contract trading market.
• Improve international service levels, meet the contract transaction needs of global users, and expand market share.

Risk management and compliance construction:

• Establish a sound risk management system to strengthen risk control and regulatory compliance of contract transactions.
• Continuously optimize the compliance process to ensure that contract trading business complies with laws, regulations and industry standards.

Through the above development plan, the contract trading department of DFCAPP exchange will actively respond to market demand, continue to innovate and progress, and provide users with more high-quality, safe and convenient contract trading services. We believe that in the competition in the global digital asset trading market, DFCAPP Exchange will continue to play a leading role, lead the development trend of the contract trading market, and create more value and opportunities for users.

About the Company

DFCAPP was established in 2021. The DFCAPP exchange was officially registered and updated in the UK on August 13, 2023 as DFC Cryptocurrency Exchange LTD. It is a global digital asset financial service platform. DFC APP Exchange develops data processing and investment trust services through a professional and mature team. securities. and contract trading signals. DFCAPP’s mission is to make the cryptocurrency and blockchain world more stable, secure, and transparent.

Moreover, the platform prioritizes individual privacy and signifies security measures. DFCAPP’s servers are hosted in world-class data centers with enterprise-grade firewalls to keep their transactions safe from risks. Furthermore, with unwavering dedication and commitment, the platform’s DFCAPP brings massive digital transformation to the individual's life. The mobile app provides global users an edge as they build wealth in a competitive market. Additionally, the platform strives to bring more value to the crypto community by educating the public and providing exceptional services to users.

Welcome to join hands with DFCAPP exchange to create a bright future of digital asset contract trading!

For more details, please visit https://www.dfcapp.net/ or contact :

UK Headquarters: +44(0)7960-9999-39

German branch: +49(0)1573-9776-206

Email: 

Support: [email protected]

Office: [email protected]

Contact Info: Name: Media relation Email: Send Email Organization: DFC Cryptocurrency Exchange Ltd Website: https://www.dfcapp.net

Release ID: 89127795

If there are any errors, inconsistencies, or queries arising from the content contained within this press release that require attention or if you need assistance with a press release takedown, we kindly request that you inform us immediately by contacting [email protected]. Our reliable team will be available to promptly respond within 8 hours, taking proactive measures to rectify any identified issues or providing guidance on the removal process. Ensuring accurate and dependable information is our top priority.

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You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Best Medicare Supplement Plan G Companies in 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Medigap Plan G is the most comprehensive Medicare Supplement Insurance plan that all Medicare members can buy. It’s also the most popular of these plan types [0] AHIP . The State of Medicare Supplement Coverage . Accessed Feb 9, 2024. View all sources .

Plan G covers nearly all of the out-of-pocket expenses associated with Medicare Part A and Part B, such as copays, coinsurance and deductibles. (Medigap plans sold to people who became eligible for Medicare after 2019 can’t cover the Medicare Part B deductible — $240 in 2024 — so Plan G doesn’t cover that cost [0] Centers for Medicare & Medicaid Services . Compare Medigap Plan Benefits . Accessed Feb 9, 2024. View all sources .)

Since it can be difficult or impossible to change Medigap plans after the end of your Medigap open enrollment period , it’s a good idea to choose your Medigap Plan G company carefully.

Here are NerdWallet’s picks for the best Medicare Supplement Plan G companies in 2024.

Best Medicare Supplement Plan G companies

NerdWallet compares Medicare Supplement Insurance companies based on plan availability, member satisfaction, pricing, extra perks, state footprint and more.

Best overall: AARP/UnitedHealthcare

AARP/UnitedHealthcare

AARP Medicare Supplement Insurance plans from UnitedHealthcare have low complaint rates when compared with most competitors. Some plans have several variations with different prices, wellness extras and/or network restrictions, which could make choosing a plan confusing.

M-F 9am-9pm ET, Sa 10am-9pm ET

Speak to a licensed insurance agent on askchapter.org

from askchapter.org

Plan types offered Medigap plan types the company generally offers (availability may vary by location). Options include Plans A, B, C, D, F, G, K, L, M and N

A, B, C, F, G, K, L and N.

NAIC complaint rate How often the company’s members file complaints about their policies as compared to the industry average, according to data from the National Association of Insurance Commissioners (NAIC). NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.

Far fewer than expected

Premium discounts available Based on the number and size of a company’s available discounts on monthly premiums, in comparison to other insurance companies.

Above average

• Offers as many as eight out of 10 plan types.
• Available in every state.
• Few customer complaints and strong third-party customer satisfaction ratings.
• Plans with health and wellness discounts may cost extra, while some competitors offer them for free.
• Plan variations and extras can get confusing.
• Network requirements for lower-cost Medicare Select plans.

Service area: 50 states and Washington, D.C. [0] UnitedHealthcare . AARP Medicare Supplement Insurance Plans for Retirees . Accessed Feb 9, 2024. View all sources .

Why we like it: AARP and UnitedHealthcare make Medigap Plan G policies widely available with low prices and few member complaints. Unless you’re looking for specific side benefits or a high-deductible Plan G option, AARP/UnitedHealthcare Plan G can be hard to beat.

» MORE: Read our review of AARP/UnitedHealthcare Medicare Supplement Insurance

Best for additional coverage options: Anthem

Anthem stands out from most other Medigap companies by offering options to add dental and vision coverage to Medigap plans. It offers only a few Medigap plan types, though, and serves fewer states than most competitors.

A, F, G and N.

Close to expected

• Mix and match dental and vision add-ons.
• Several discounts based on household and payment methods.
• Extra perks for fitness, health and wellness products and services.
• Lower-coverage plans are sometimes more expensive.
• Few Medigap plan types available.
• Available in only about one-third of states.

Service area: 14 states [0] Anthem . Medicare Supplement Plans (Medigap) from Anthem . Accessed Feb 9, 2024. View all sources .

Why we like it: If you want to roll dental, hearing and vision coverage into your Medigap Plan G purchase, Anthem is a strong option. The company’s Anthem Extras packages offer multiple tiers of dental, hearing and/or vision coverage that you can mix and match with most Anthem Medigap policies to fit your needs [0] Anthem . Anthem Extras Packages . Accessed Feb 9, 2024. View all sources .

» MORE: Read our review of Anthem Medicare Supplement Insurance

Best for high-deductible Medigap Plan G: Mutual of Omaha

Mutual of Omaha

Mutual of Omaha's household discount of up to 12% is larger than most competitors' discounts, and members file few complaints about their policies.

• Complaint rates are well below the market average.
• Available in every state but Massachusetts.
• Up to a 12% discount for living with another adult.
• Few choices for plan type.

Service area : Every state except Massachusetts, plus Washington, D.C. [0] Mutual of Omaha Corporate Communications . Email Confirmation . Accessed Feb 9, 2024. View all sources .

Why we like it: Mutual of Omaha makes high-deductible Medigap Plan G widely available, whereas many competitors offer it in fewer states. Mutual of Omaha plans get far fewer complaints than average and have reasonably competitive pricing. The pricing gets even better for applicants who qualify for a household discount of up to 12% (terms and discount levels can vary by location) [0] Mutual of Omaha . Medicare Solutions Product Portfolio . Accessed Feb 9, 2024. View all sources .

» MORE: Read our review of Mutual of Omaha Medicare Supplement Insurance

Honorable mention: Blue Cross Blue Shield

Blue Cross Blue Shield

Blue Cross Blue Shield is a collective of 33 companies. BCBS plans are available throughout the country, but plan types, prices and performance vary.

A, B, C, D, F, G, K, L, M and N.

• "Blue to Blue" program could mean easier changes to coverage in the future.
• Available in all 50 states and Washington, D.C.
• Offerings and experiences vary depending on BCBS company.
• Higher prices for Plan N.
• Cheaper Medicare Select plans have network requirements.

Service area: 50 states and Washington, D.C. [0] Blue Cross Blue Shield . BCBS Companies and Licensees . Accessed Feb 9, 2024. View all sources .

Why we like it: Blue Cross Blue Shield licensees offer Medigap policies everywhere in the country. Broadly speaking, BCBS companies offer competitive prices and have roughly average complaint rates — but because different BCBS companies serve different locations, pricing, perks and member experience can vary. It’s worth looking at the Blue Cross Blue Shield options in your area to see how their Plan G offerings compare to other top companies.

» MORE: Read our review of Blue Cross Blue Shield Medicare Supplement Insurance

Find the right Medicare Supplement Insurance plan

Because Medigap plans are standardized, you can get precisely the same Medicare benefits from any company offering the plan. So when you shop, keep these considerations in mind to find the best policy to fit your needs:

Is your preferred plan available? Health insurance companies don’t always sell every plan, so check who sells the plan you want to buy in your area.

What are the premiums? Prices for the same plan can vary between companies, so check to find the most competitive rates.

Will your premiums change over time? Most policies cost more as you age, but some companies offer policies that let you lock in a price when you sign up.

Are there extras? Medigap plans’ core benefits are standardized, but in certain cases, some companies include such perks as discount programs or gym memberships.

Here’s an overview of our top picks for Medigap Plan G:

Best overall: AARP/UnitedHealthcare Medicare Supplement Insurance

Best for additional coverage options: Anthem Medicare Supplement Insurance

Best for high-deductible Medigap Plan G: Mutual of Omaha Medicare Supplement Insurance

Honorable mention: Blue Cross Blue Shield Medicare Supplement Insurance

Note regarding NAIC complaint data: NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.

Medicare Supplement Insurance ratings methodology

NerdWallet’s Medicare Supplement Insurance (Medigap) ratings are based on pricing, discounts, plan types offered, complaint data from the National Association of Insurance Commissioners, consumer experience, additional perks and benefits, and more. To calculate each health insurance company's rating, we adjusted the scores to a curved 5-point scale, rounded to the nearest half star.

NerdWallet reviewed 13 Medicare Supplement Insurance companies based on highest enrollment and greatest online search volume. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best coverage and rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines and full ratings methodology for Medicare Supplement Insurance.

Insurer complaints methodology

We examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, we calculated a similar index for each insurance company, weighted by market shares of each subsidiary. We score companies based on this index of how many complaints the company receives relative to its market share. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.

Digital Wallets Core 7 KPI Metrics to Track and How to Calculate

By alex ryzhkov, resources on digital wallets.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Customer acquisition rate

Transaction volume

• Average transaction value

Customer retention rate

Merchant adoption rate, average number of transactions per customer.

• Growth rate of payment platform integrations

Welcome to our blog post on 7 industry-specific Key Performance Indicators (KPIs) for Digital Wallets. Understanding these KPIs is essential for businesses looking to optimize their performance in the digital wallet space. By tracking metrics such as customer acquisition rate, transaction volume, average transaction value, customer retention rate, merchant adoption rate, average number of transactions per customer, and growth rate of payment platform integrations, companies can gain valuable insights into the success and effectiveness of their digital wallet strategies. In this post, we will delve into each of these KPIs, highlighting their significance and providing actionable tips for improvement.

Customer Acquisition Rate

The customer acquisition rate is a key performance indicator (KPI) that measures the number of new customers acquired by a digital wallet within a specific period of time. It provides insights into the effectiveness of the wallet's marketing and sales strategies in attracting new users.

Advantages of Tracking

Tracking the customer acquisition rate allows digital wallet providers to evaluate the success of their efforts in expanding their user base. By monitoring this KPI, companies can identify trends, patterns, and potential issues, enabling them to make data-driven decisions to improve their acquisition strategies.

Industry Benchmarks

Industry benchmarks for the customer acquisition rate in the digital wallet sector can vary depending on several factors such as the specific market, target audience, and competition. However, a healthy acquisition rate typically falls within the range of 5-10% quarterly.

How To Calculate

The formula to calculate the customer acquisition rate is:

(Number of new customers acquired / Total number of customers) x 100

Example of Calculation

Let's say a digital wallet had 500 new customers in a quarter, and its total number of customers at the beginning of the quarter was 5,000.

(500 / 5,000) x 100 = 10%

Therefore, the customer acquisition rate for this digital wallet in that particular quarter is 10%.

Tips and Tricks of the KPI

• Track the customer acquisition rate regularly to identify trends and patterns.
• Segment the data by different demographics and sources to gain deeper insights.
• Compare the acquisition rates of different marketing channels or campaigns to optimize your marketing efforts.
• Experiment with different acquisition strategies and analyze the impact on the rate.

Transaction volume is a key performance indicator (KPI) that measures the total number of transactions processed by a digital wallet within a specific period of time. It provides valuable insights into the popularity and usage of the digital wallet among users, as well as the overall growth of the digital wallet industry.

Tracking transaction volume offers several advantages for digital wallet providers. Firstly, it helps them understand the demand for their services and identify trends in user behavior. This information can then be used to make data-driven decisions, such as improving user experience, optimizing marketing strategies, and enhancing product offerings. Additionally, tracking transaction volume allows digital wallet providers to monitor their performance in comparison to competitors in the industry. By staying updated on the transaction volume benchmarks, they can set realistic targets and continuously strive for growth.

Industry benchmarks for transaction volume in the digital wallet sector vary based on factors such as the size of the provider, target market, and the overall maturity of the industry. However, it is generally observed that successful digital wallets experience high transaction volumes, sometimes reaching millions or even billions of transactions per month. Comparing the transaction volume with industry benchmarks helps digital wallet providers assess their market share and gauge their standing within the industry.

The formula to calculate transaction volume is as follows:

Transaction Volume = Total number of transactions processed within a given time period

Let's say a digital wallet processed 50,000 transactions in a month. The transaction volume for that period would be 50,000.

• Monitor transaction volume regularly to track the growth of the digital wallet and identify any sudden changes in user behavior.
• Compare your transaction volume with industry benchmarks to gain insights into your market position and identify areas for improvement.
• Analyze transaction volume trends over time to identify peak periods and plan resource allocation accordingly.
• Consider the transaction volume in conjunction with other KPIs, such as revenue and user growth, to gain a holistic understanding of the digital wallet's performance.
• Implement strategies to increase transaction volume, such as offering incentives, expanding partnerships, and improving user experience.

Average Transaction Value

Definition:

The Average Transaction Value (ATV) is a key performance indicator that measures the average value of each transaction made through a digital wallet. It provides insights into the spending habits of customers and helps businesses understand the monetary value of each transaction.

Advantages of Tracking:

Tracking the Average Transaction Value helps digital wallet providers and businesses in several ways:

• Identifying customer purchasing patterns.
• Segmenting customers based on their spending habits and potential value.
• Optimizing product offerings and pricing strategies.
• Measuring the success of marketing campaigns and promotions.

Industry Benchmarks:

The Average Transaction Value can vary across industries. For example, the average transaction value for retail could be higher than that of a food delivery service. It is essential for businesses to compare their ATV to industry benchmarks to evaluate their performance.

How To Calculate:

To calculate the Average Transaction Value (ATV), use the following formula:

ATV = Total Revenue / Number of Transactions

Example of Calculation:

Let's say a digital wallet provider generates a total revenue of $10,000 from 500 transactions in a month. The Average Transaction Value would be:

ATV = $10,000 / 500 = $20

Tips and Tricks of the KPI:

To leverage the Average Transaction Value effectively, consider the following tips and tricks:

• Offer incentives to encourage customers to increase their transaction value.
• Analyze customer segments and tailor marketing strategies accordingly.
• Monitor changes in the Average Transaction Value over time to identify trends and areas for improvement.

The customer retention rate is a key performance indicator (KPI) that measures the percentage of customers who continue to use a digital wallet over a specific period of time. It indicates how effective a digital wallet is at retaining its user base.

Tracking the customer retention rate for digital wallets provides valuable insights into the level of customer loyalty and satisfaction. By monitoring this KPI, businesses can measure the effectiveness of their customer retention strategies and identify areas for improvement.

Industry benchmarks for the customer retention rate in digital wallets vary depending on the specific market and competition. However, a higher retention rate generally indicates better customer engagement and loyalty.

To calculate the customer retention rate, you need to know the total number of customers at the beginning of a specified period (C_start), the number of customers at the end of the period who are still active users (C_end), and the number of new customers acquired during the period (N). The formula for calculating the customer retention rate is as follows:

( (C_end - N) / C_start ) * 100

Let's say a digital wallet had 10,000 customers at the beginning of a month. During that month, they acquired 2,500 new customers. At the end of the month, they had 8,800 active users. Calculating the customer retention rate:

( (8,800 - 2,500) / 10,000 ) * 100 = 63%

• Regularly analyze customer feedback and ratings to identify areas that may impact customer retention.
• Offer personalized incentives and rewards to loyal customers to encourage continued usage of the digital wallet.
• Provide seamless and secure user experiences to minimize customer churn.
• Monitor and address any potential issues or difficulties that users may face with the digital wallet.
• Continuously innovate and add new features to enhance the value proposition of the digital wallet.

The merchant adoption rate is a key performance indicator (KPI) that measures the percentage of merchants within a specific industry that have adopted digital wallets as a payment method.

Tracking the merchant adoption rate is crucial for digital wallet providers as it helps them gauge the acceptance and popularity of their service among merchants. By monitoring this KPI, providers can identify trends, make informed decisions, and refine their marketing and sales strategies to drive higher adoption rates.

The industry benchmarks for merchant adoption rates vary depending on the specific digital wallet provider and the industry as a whole. However, a higher adoption rate is generally seen as a positive sign and can be an indication of a successful digital wallet solution.

To calculate the merchant adoption rate, you need to divide the number of merchants accepting digital wallets by the total number of merchants in the industry, and then multiply the result by 100 to express it as a percentage.

Merchant adoption rate = (Merchants accepting digital wallets / Total number of merchants) x 100

Let's say there are 500 merchants in a specific industry, and out of those, 200 have started accepting digital wallets. To calculate the merchant adoption rate, we would use the formula:

Merchant adoption rate = (200 / 500) x 100 = 40%

• Regularly update the data on merchant acceptance to ensure accurate tracking of the merchant adoption rate.
• Keep an eye on industry trends and competitor adoption rates to benchmark your performance.
• Offer incentives to merchants to encourage adoption of your digital wallet solution.
• Continuously improve the user experience and functionality of your digital wallet to attract more merchants.

The Average number of transactions per customer is a Key Performance Indicator (KPI) that measures the average number of transactions made by each individual customer using a digital wallet within a given time period. It provides insights into the transaction behavior of customers and the usage of digital wallets.

Tracking the Average number of transactions per customer is essential for digital wallet providers as it helps them understand customer engagement and loyalty towards their platform. By monitoring this KPI, companies can identify trends, measure the success of marketing campaigns, and make informed decisions to optimize business strategies.

Industry benchmarks for the Average number of transactions per customer can vary depending on the specific digital wallet industry and its target market. However, a higher average number of transactions per customer generally indicates higher customer satisfaction and usage rates, which in turn lead to increased revenue and growth opportunities.

To calculate the Average number of transactions per customer, you need to divide the total number of transactions made within a specific time period by the number of active customers in the same period. The formula for this calculation is:

Average number of transactions per customer = Total number of transactions / Number of active customers

Suppose a digital wallet provider recorded 15,000 transactions in the past month, and had a total of 3,000 active customers during the same period. To calculate the Average number of transactions per customer, you would use the formula:

Average number of transactions per customer = 15,000 transactions / 3,000 customers

Therefore, the average number of transactions per customer would be 5 transactions.

• Segment your customer base to analyze transaction behavior among different customer groups (e.g., new customers, frequent users, high-value customers).
• Monitor the Average number of transactions per customer over time to identify any significant changes or trends.
• Compare your digital wallet's Average number of transactions per customer against industry benchmarks to assess your platform's performance and identify areas for improvement.
• Implement strategies to increase customer engagement and satisfaction, such as personalized offers, referral programs, or loyalty rewards.
• Regularly evaluate and update your marketing campaigns based on the insights gained from tracking this KPI.

Growth Rate of Payment Platform Integrations

A digital wallet is a virtual platform that allows users to make electronic transactions, such as online purchases or transferring money to other individuals or businesses. Key Performance Indicators (KPIs) are metrics used to evaluate the performance of digital wallets. Industry-specific KPIs measure the success and efficiency of various aspects of a digital wallet's operations within a specific industry.

Tracking industry-specific KPIs for digital wallets provides valuable insights into the performance and efficiency of the payment platform integrations. It allows businesses to identify areas for improvement, optimize the user experience, and enhance customer satisfaction. By monitoring and analyzing KPIs, companies can make data-driven decisions to increase revenue, improve operational processes, and gain a competitive edge.

Industry benchmarks are guidelines or standards that represent the average or optimal performance levels of specific KPIs within an industry. They serve as reference points for digital wallet providers to gauge their performance against their competitors and determine areas where they excel or need improvement. By comparing their KPIs to industry benchmarks, companies can discover opportunities for growth and identify areas where they may be lagging behind.

To calculate industry-specific KPIs for digital wallets, you need to gather relevant data and apply the appropriate formulas. Each KPI may have its own specific calculation method. Here is an example of how to calculate one of the KPIs:

• Ensure accurate data collection and analysis to obtain reliable KPI results.
• Regularly update industry benchmarks to stay informed about the latest performance standards.
• Integrate KPI tracking into your digital wallet platform to monitor performance in real-time.
• Continuously optimize payment platform integrations based on KPI insights to enhance user experience.
• Benchmark your digital wallet's KPIs against both industry standards and your own historical data to measure progress over time.

In conclusion, identifying and tracking industry-specific Key Performance Indicators (KPIs) for a Digital Wallets business is crucial for measuring success and achieving growth in this highly competitive market. By focusing on metrics that directly align with the nature of the industry, such as transaction volume, customer acquisition costs, and user engagement, digital wallet providers can gain valuable insights into their business performance and take targeted actions to optimize their operations.

When it comes to formulating the right set of KPIs, it is essential to consider the unique attributes and dynamics of the industry in which the digital wallet operates. A comprehensive list of seven industry-specific KPIs can consist of:

• Transaction Volume: measuring the number and value of transactions processed through the digital wallet platform.
• Customer Acquisition Costs: tracking the expenses associated with acquiring new customers for the digital wallet, including marketing and promotional costs.
• User Engagement: gauging the level of user activity and interaction with the digital wallet platform, including frequency and duration of usage.
• User Retention: monitoring the rate at which users continue to use the digital wallet over a specific timeframe.
• Security Compliance: evaluating the adherence of the digital wallet to industry best practices and regulations related to security and data privacy.
• Merchant Adoption: measuring the number of merchants accepting digital wallet payments and tracking the growth in acceptance across different industries.
• Customer Satisfaction: assessing the level of customer satisfaction and loyalty through feedback surveys and ratings.

By regularly analyzing these industry-specific KPIs, digital wallet businesses can gain a comprehensive understanding of their performance and make data-driven decisions to enhance their services, attract more users, and differentiate themselves in the competitive digital landscape.

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