Common Challenges & Solutions in Developing eWallet Apps

Are you planning to develop an eWallet app?

It is no secret that the market for digital wallets is growing at an amazing rate, generating billions in revenue. Success stories of apps like Google Pay, PayPal, & Venmo have inspired a lot of people.

Though creating an eWallet app is a lucrative business venture, there are some things that you must consider, most importantly, the challenges in developing an eWallet app

At the end of the day, digital wallets are fintech solutions, making them a subject of endless security compliance, regulations, and security concerns.

Before you develop your own, these are important points to understand.

Therefore, in this blog, we shall be discussing all you need to know about the development challenges in ewallet apps.

With that being said, let’s get right into it:

Why Build an eWallet App in 2024? A Dive into The Market

Before we dive into the challenges of digital wallet apps, let’s first look at the reason behind the popularity of this venture in the business world.

These are, as mentioned below:

• Growing Market: From $4 Trillion in 2023, Digital Payment Market to Hit $10 Trillion in 2026.
• High User Demand: There will be Over 4 Billion eWallet App Users by 2025.
• Greater Use of eWallets: Mobile Wallet Transactions are Forecast to Hit $16 Trillion by 2028.

These are some of the top reasons why businesses are considering eWallet app development services.

With this out of the way, we shall be moving to the next section where we shall be discussing the top development challenges in e-wallet apps.

Common Development Challenges in eWallet Apps & Their Solutions

If you are running a business or planning to establish one, you know the amount of challenges one faces when establishing a solution.

This is common in the case of the implementation and development of eWallet applications.

Speaking of which, to save you the trouble of walking straight into these eWallet app solution pitfalls, let’s look at some common challenges as well as their solutions.

So let’s get right into it:

1. User Adoption

Users are the main focus of any app-based business, including eWallet applications.

So, it’s natural that the first mobile wallet app challenge is associated with the same. We are talking about user adoption.

In layman’s terms, the first issue is making users adopt the app and utilize the technology being offered.

More often than not, it’s easier said than done. Even if you make a user-friendly eWallet app design, it doesn’t guarantee success among people.

One big reason behind this is a lack of trust in a new solution. When a brand first enters a market, it has a big issue with user adoption, as people aren’t willing to do business with a brand that they don’t trust.

Solution:

So, how do you solve it? Here are some top solutions.

• Create a User-Friendly eWallet App

A good solution to this eWallet app challenge is a user-friendly app.

The user-friendliness of a solution goes beyond just a good design, it is rooted in features, user experience, and the overall look & feel of the application.

An app that’s easy to use and lets users find what they are looking for quickly has a higher chance of driving greater user acceptance.

• Offer Appealing Deals To Users

No user doesn’t love a good deal. You can use it to your advantage.

Start by offering early adoption benefits to users in the form of amazing deals, cashback, or coupons. Or you can also offer them limited access to the premium version.

This will attract more people to your application and drive greater consumer retention.

• Start Educational Campaigns To Bring Awareness

Lastly, to educate the user about why your solution is best or why they should use it, you can run an educational campaign.

After all, there is nothing that drives user engagement like a good app marketing campaign.

• Partner With Big Names To Drive Trust

Though you can’t build trust in a short period, what a business can do is partner with other brands that are trusted in the market.

This, in turn, strengthens the brand image of your eWallet application, adding to user adoption and solving the issue.

• Consider App Localization

User adoption also depends on local factors like language.

Therefore, based on this, to make your app more likely to be used by the targeted user base, it’s a good idea to invest in app localization.

2. Fintech Infrastructure & Technological Fragmentation

eWallet apps are just the gateway to a sophisticated world of technology that makes monetary transactions possible.

And to make this happen, there are several parties involved in it.

This includes banks, government agencies, compliance committees, security providers, and the list goes on. As a whole, we can call it Fintech Infrastructure.

While there are countries like China, the USA, India, and most of Western Europe that have the amazing infrastructure to enable the transaction, the rest of the world is still coming towards it. In addition to this, one of the biggest development challenges in ewallet apps are a fragmented user base.

This is to say, only a small percentage of smartphone users are using the latest hardware and software.

A considerable user base is still running outdated phones, which makes it even more difficult.

Solution:

So, how do you solve it? Here are some top solutions.

• Responsive eWallet App Design

A good solution to the challenges of eWallet apps not being able to run on different devices is creating a responsive design.

This will help the app adapt to the different screen sizes, even to the ones that aren’t currently in the trend. This also adds to the overall user experience.

• Partner with Local Financial Services Providers

We are in the 21^st century, and in today’s age and time, almost every country has either a top eWallet solution of its own or the market is already dominated by a popular eWallet platform.

Our challenge lies in the previous situation and to solve it, you can partner with the local wallet service provider and merchant service provider to deliver a better solution.

• Progressive eWallet Implementation

The biggest challenge in implementing the digital wallet solution is the user base not being able to access the advanced solution.

This can be solved with progressive implantation.

In simple words, start by introducing the basic functionality first. Then, as the local technological level grows, move to the more advanced functionality.

• Innovative Payment Technologies

Did you know that apart from NFC payment and P2P eWallet payment, there are other options as well? This can be the perfect solution for areas with inferior fintech infrastructure.

For instance, you can offer SMS-based transactions or USSD codes instead of QR codes.

3. Rising Cyber Frauds & Security Issues

eWallet security is one of the top concerns.

Each year, due to security issues and cyber fraud, fintech companies are losing billions. And as time goes on, the number is only growing.

This doesn’t only mean loss of revenue but also weakens brand reputation greatly.

Solution:

So, how do you solve it? Here are some top solutions.

• Regular Security Audits

The first way to tackle one of the biggest difficulties is through regular security checks.

You can work with fintech security experts or consult a security company that will help you secure your eWallet application. This is one of the basic measures to stop security breaches.

• Educate customers about Common Fraud

The best way to stop cyber fraud is to spread awareness to the user base. Most of the time, fraudsters use similar techniques and methods to cheat money out of users.

By educating the users on these methods, how to identify fraud, what are suspicious situations, and what not to share with unknown people – eWallet applications can save a lot.

• Consider Top Security Trends

Now, various advantages technologies are especially built around eWallet application security. They can be used to give your solution an edge over fraud and security threats.

These technologies are, as mentioned below:

– Tokenization

Tokenization is a blockchain-based technology that has become quite a trend in recent times, especially for creating eWallet apps.

Here’s how it works: important information like credit cards is fed to blocks in a digital ledger.

It removes the need to enter the same information again and again. And since we are talking about blockchain, the information cannot be messed with.

– Encryption

Encrypting is an age-old technology that has been used to protect important data.

In the case of eWallet apps, it is especially important to establish a secure connection with Open Banking APIs and other Fintech APIs.

– Biometric Authentication

Biometric authentication has become a mandatory feature for top fintech apps in the market. But what is it? Well, you might have already used it.

This technology enables users to log in to the app or authenticate using biometric features like a Fingerprint Scanner, Facial Scanner, and Iris or Retina Scanner.

– AI-powered Threat Detection

AI-powered threat detection has been taking fintech security to the next level ever since its introduction. It is a good example of AI for automation in mobile apps.

Speaking of which, AI learns with data and time. Therefore, a well-structured and trained model can easily identify security threats to the platform.

– Endpoint Security

With the increasing use of mobile devices for financial transactions, securing endpoints (smartphones, tablets) is vital. This includes implementing secure coding practices for eWallet applications and ensuring that devices are regularly updated with the latest security patches.

– Quantum-Safe Cryptography

As quantum computing advances, there is a growing need for quantum-resistant or quantum-safe cryptographic algorithms. Fintech companies should stay informed about developments in this area to ensure the long-term security of their system.

4. Payment System Integration

One of the major challenges of implementing a digital wallet is payment gateway integration.

The causes of this issue range in number, including system incompatibility, lack of standardization, and lack of communication.

Moreover, since there are a lot of factors considered in app development, including system standardization and communication compatibility, the problems only grow larger.

Solution:

So, how do you solve it? Here are some top solutions.

• Working With Existing Solutions

One of the ways to mitigate these digital wallet app challenges is by working with existing solutions. This will ensure integration is easier and also make your eWallet application a lot more compatible.

• Let Developers use APIs

The best possible way to solve integration and compatibility issues is by letting the developer use an API. API development can make integration a lot easier.

• Thorough App Testing

Before you send the eWallet application for deployment, it is good practice to conduct thorough mobile app testing.

Security-focused app testing helps the team make sure there are no underlying issues, errors, or bugs. If there are, they are dealt with.

5. Complexity in App Development

Well, one of the biggest development challenges in ewallet apps.

Rooted into one of the most complex and regulated industries across the world, there are 100s of things to keep in mind when creating a digital wallet application.

Here’s how you can solve it.

Solution:

So, how do you solve it? Here are some top solutions.

• Hire Expert eWallet App Developers

If you want to be the best, you should work with the best.

Therefore, to make the development process smooth, you should hire app developers who have the right experience and expertise.

You should sit down with the development team and interview them thoroughly before shaking their hand.

• Educate Yourself About Building an eWallet Apps

Another way to deal with the complexity of building eWallet applications is by educating yourself.

There are hundreds of resources based on eWallet applications, technologies, development processes, and more.

One of the easiest ways is to read a guide on “How to develop an eWallet app?” The more you know about the development process, the easier it is.

• Plan it out

The secret formula to smooth the app development process is a detailed plan.

Sit down with the development team and create a carefully curated plan covering everything from the app tech stack to the deployment process.

6. eWallet Regulations & Compliances

We have said this before and will do it again as Fintech is the most regulated and restricted industry.

The sheer reason behind it is that it deals with such a huge amount of information and finances that it can’t afford to make mistakes.

And this becomes one of the worst online wallet app challenges. So, how do you deal with it?

Solution:

So, how do you solve it? Here are some top solutions.

• Hire a Legal Expert

If you don’t want to get fined for non-compliance and maintain customer’s trust, go hire a legal expert.

There are companies based around fintech compliance that will help you integrate guidelines much better.

• Prioritize Customer Data Security

Most of the compliance is based on two major points:

1. Don’t commit fraud
2. Handle data the right way

So, a big solution to the Challenges of eWallet apps comes in the form of making sure that data is fully secure. Customer data to be specific.

• Follow strict internal policies

As a general rule of thumb, if you are running a fintech business, you should have very strict internal policies and procedures.

This will take you a long way in matters of app security and compliance.

• Collaborate with Regulators

Truth be told, one of the best things to do here is to collaborate with regulators to improve your platform.

Regulatory committees are very eager to help companies improve their compliance standards, as it makes the work easier for everyone. And who better to consult than the people creating guidelines themselves?

• RegTech Integration

RegTech refers to regulatory technology.

As the name suggests, these are software that helps fintech companies automate their processes via automation tools. In addition to this, they also come with analytical tools.

Moreover, RegTech integration can also greatly improve AML and KYC processes.

Top Compliances To Keep In Mind

Speaking of eWallet regulations and compliance, let’s see some of the top compliance that you should look after.

• AMLRS: Anti-Money Laundering Regulations
• PCI DSS Compliance
• GDPR (General Data Protection Regulation)

7. Ever-Changing User Needs

The market and user needs are always changing. And if you want to make an eWallet app that becomes successful among people, evolution is necessary.

In other words, you can look at this mobile wallet app challenge in the form of “delivering quality at a fast pace.”

Here’s how you can deal with it:

Solution:

So, how do you solve it? Here are some top solutions.

• Listen to the user

The list of user demands is, as simple as that.

In an ever-changing market, if you want to stay relevant, you should always deliver what users are asking for.

This theory will take you a long way.

• Take Agile Methodology

An issue greater than coming up with innovation is implementing it. This is where the Agile Approach comes in.

With collaboration, transparency, and a lot of room for improvement, while being fast-paced, agile lets companies introduce new features and functionalities in no time.

• Integrate Market Trends

And lastly, a good way to deal with this eWallet app challenge is to focus on market trends and integrate them into your app.

Here are some top eWallet trends:

• Biometric authentication
• Smart voice payments
• Peer-to-peer (P2P) payments
• In-app payments
• Contactless payments
• Expanded support for alternative currencies
• Expansion into new markets
• Regulatory compliance

How Nimble AppGenie Can Help You Solve Challenges in Developing an eWallet App?

More often than not, founders with unique ideas for eWallet apps and eWallet app companies looking to introduce innovation face a lot of challenges.

The development and implementation challenges at eWallet are numerous and hinder growth. If you are stuck with this issue, we have the perfect solution for you.

As a top fintech app development company, we have worked with some of the renowned names in the eWallet world, including the largest digital bank in Africa and the CUT digital wallet, the market leader in Myanmar and China.

Our team is experienced, expert, and dedicated to the cause. Thus, we can help you take your ideas into research, MVP, deployment, and maintenance.

We can help you overcome these challenges. Contact us today.

Conclusion

With the rise in popularity of building eWallet applications, there has also been a rise in innovation, regulations, and trends.

As we discussed in this blog, there are some development challenges for ewallet apps every step of the way. But at the end of the journey, the reward is huge. So, if you have the right idea, contact an experienced mobile app development company and go ahead with it.

FAQs

Niketan Sharma

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.