An e-wallet, also known as a digital wallet, is a secure application that stores your payment information, such as credit card numbers, debit card numbers, and passwords, in an encrypted format.

This allows you to make payments online or in-store without having to enter your card information every time (contactless payment).

E-wallets can also store other information, such as boarding passes, event tickets, and loyalty card numbers. 

When you make a payment using an e-wallet, the app generates a unique token that is used to represent your payment information.

This token is then transmitted to the merchant, and your actual card information is never exposed. This makes e-wallets a very secure way to make payments.

Here is a more detailed explanation of how an e-wallet works:

1. You create an account with an e-wallet provider.
2. You enter your payment information into the e-wallet app.
3. The app encrypts your payment information and stores it securely on your device or in the cloud.
4. When you make a payment, the app generates a unique token that represents your payment information.
5. The token is transmitted to the merchant.
6. The merchant processes the payment and sends the funds to your account.

We can classify digital wallets in a few ways.

Types of Digital Wallets Based on Issuer

Closed Wallet:

• Developed and maintained by a specific company or organization
• Typically used for making payments within a specific ecosystem, such as a retailer's loyalty program or a transportation network
• Examples: Amazon Pay, Apple Pay, Samsung Pay

Semi-closed Wallet:

• Can be used with a limited number of merchants or within a specific industry
• May offer more flexibility than closed wallets but still have restrictions
• Examples: PayPal, Google Pay, Venmo

Open Wallet:

• Not tied to any specific issuer or merchant
• Can be used for a wide range of transactions, both online and offline
• Often considered the most versatile type of digital wallet
• Examples: Visa Checkout, Mastercard PayPass, M-Pesa

Types of Digital Wallets Based on Functionality

• Bitcoin wallet: Stores and manages Bitcoin cryptocurrency.
• White label crypto wallet: A pre-built crypto wallet that can be customized and branded by companies.
• Multi-cryptocurrency wallet: Stores and manages multiple cryptocurrencies.
• Ethereum digital wallet: Stores and manages Ethereum cryptocurrency.
• Defi wallet: Decentralized finance (DeFi) wallets that enable trading, token exchange, buying, selling, or lending of tokens.
• Coin-specific wallet : Wallets for specific cryptocurrencies.
• Stored-value wallet: Stores and manages prepaid funds for online or offline payments.
• Telco wallet: A wallet integrated with a telecommunications provider for mobile payments.
• Transportation wallet: A wallet for making payments for transportation services.
• Cashback/rewards wallet: A wallet that offers cashback or rewards for using the wallet for transactions.
• IoT wallet: A wallet integrated with Internet of Things (IoT) devices for secure transactions.
• AI-powered wallet: A wallet that uses artificial intelligence (AI) to provide personalized features and enhanced security.
• Multi-currency wallet: Stores and manages multiple fiat currencies.
• NFT digital wallet: Stores and manages non-fungible tokens (NFTs).
• Biometric wallet: A wallet that uses biometric authentication, such as fingerprints or facial recognition, for security.
• Peer-to-peer transfer wallet: A wallet that enables direct transfers of funds between individuals.
• Centralized wallets: Centralized crypto wallets that a company manages.

• Convenience: A mobile wallet application allows users to make payments without having to carry around physical cash or cards.
• Security: Digital wallets are often more secure than physical wallets because they use advanced security features such as tokenization and encryption.
• Speed: E-wallets can help to speed up the checkout process because users can make payments with a few taps or clicks.

We prioritize security when developing our e-wallet app. Here are some of the key considerations we take:

• Encryption techniques: We encrypt all sensitive data, such as payment information and personal information, to safeguard it from unauthorized access.
• Secure connections (HTTPS): We ensure all communication between the digital wallet application and the server occurs over secure HTTPS connections to prevent data interception.
• Industry best practices: We adhere to industry best practices for security, such as the Payment Card Industry Data Security Standard (PCI DSS).
• User authentication: We require users to authenticate themselves before accessing sensitive information, such as payment information.
• Data encryption: We store all sensitive data in encrypted form, even when it's stored on the device.
• Tokenization: We replace sensitive data with unique tokens that can be used for transactions without exposing the actual data.
• Security standards and regulations: We comply with relevant security standards and regulations, such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS).

We've been building fintech products since 2014.

During the last few years, we have delivered many challenger and mobile banks, trading platforms, cryptocurrency exchanges, secondary shares trading platforms, and many more. 

Check out fintech case studies to learn more.

We carry out UX research and craft intuitive interfaces, ensuring a seamless customer experience for users of various fintech services, including digital wallets.

Check out a few examples of our research and designs below.

UX research:

• Introducing Green Token: A climate change blockchain solution

Designs:

• Snap Bank: New app that help you spend your money wisely

• Finvesta: Achieve your financial goals through smart real estate investing

The cost and time to develop an e-wallet depend on the specific requirements of the project. In general, building an MVP (minimum viable product) takes us on average 3 months and roughly $90k.

To learn more about our MVP-building process, read this guide:

How long and how much does it take to build an MVP?

Don't hesitate to contact us for tailored time and budget estimates for your mobile application development.

Our core technologies include React, JavaScript, Node.js, and AWS. We have both Android and iOS fintech app developers on board.

If we don't yet have the in-house expertise for a particular technology, we can always hire a specialized developer.

Our primary collaboration model is a dedicated development team, where we assemble a team of experienced developers just for you to work on your financial app development project. This model offers cost-effectiveness, faster development, higher quality, improved communication, and greater flexibility.

We are also open to exploring other collaboration models that may better suit your specific needs. Whether you prefer an outsourced approach or a hybrid solution, we are committed to working with you to find the best way to bring your financial app development project to life.

If you're not ready to develop your digital wallet application yet, you might want us to carry out a Product Discovery Workshop for you.

A Product Discovery Workshop is a collaborative session where we - together with you as our client, based on our experience building 80+ digital products - define what needs to be done to make your product successful.

If you want to learn more about the workshops (scope, cost, agenda & more), read this article:

Product Discovery Workshop: Everything you need to know

Yes, we offer a free consultation to discuss your needs and goals for your loan software solution - just contact us through the form below.