Monetizing Made Easy with eWallet App Monetization Strategies

Have you ever wondered “How To Make Money With eWallet App?”

With eWallet apps becoming a trend in the business world, there are a lot of people exploring app monetization strategies. After all, turning digital transactions into cold hard cash is as satisfying as finding money in the pocket of your old Levi’s.

Now you are wondering why monetization is such a big deal.

First of all, developing an e-wallet is not an easy feat, it takes months and many sleepless nights to develop the user-friendly app. But if you are unable to monetize it properly, all the hard work goes in vain.

If you have proper planning and the right strategies, you can become the next tech giant in e-wallets like Venmo, PayPal, and many more.

The mobile wallet market size was valued at $1,043 Bn in 2019 and is projected to reach $7,580 bn by 2027 according to Allied Market Research. The market is expected to grow at a CAGR of 28.2% from 2020 to 2027.

This report shows the future of the e-wallet app market is exceptional. There isn’t a one-size-fits-all approach to e-wallet app monetization.

Whether you are an entrepreneur or a start-up looking to enter the digital domain, it’s important to know about monetization channels to be successful. And that’s exactly what we shall be in our complete guide to e-wallet app monetization.

So let’s get right into it:

What is App Monetization?

eWallet apps are the technology pinnacle that comes to life with the amalgamation of several components. This includes the idea of going from the founder’s head to the table of the developer’s team and turning it into 1s and 0s to be given a digital life.

All of this trouble, for what? To make Millions or even more in profit. And that’s where App Monetization comes in.

Every business wants to make money and when they want to do it through eWallet apps like PayPal, monetization strategies are what make it possible.

In layman’s terms, these are channels that use the offerings of eWallet to generate revenue for the business. Let us tell you, there are quite a few different strategies. Each one of them has its unique benefit and fits different app types and business models.

For those who still don’t understand why eWallet app monetization is important, let’s move to the next section.

Why are eWallet App Monetization Strategies Important?

Picture this: You have created an incredible e-wallet app with a sleek design, seamless functionality, and a user experience that’s smoother than a buttered slide.

But how does this benefit the business? This is where the eWallet app monetization comes in. And it benefits the business in several important ways.

Some of these are, as mentioned below:

Reason 1: Revenue Generation

Who doesn’t want to generate billions in the market like top fintech apps?

These are eWallet App monetization strategies that enable businesses to generate income and ensure the financial sustainability of their operations.

By implementing various revenue models, e-wallet providers can generate revenue streams that support the ongoing development, maintenance, and improvement of their services.

Reason 2: Cost Recovery

Truth be told, the cost to build an eWallet app can be high!

Apart from development cost, there are others like security measures, user support, marketing, and compliance with regulations. And businesses want to recover them, because why not?

Well, this is done by making money, A LOT of money. What better way to enable this than through monetization channels? There you have it, why are these so important?

Reason 3: Constant Innovation

Do you want to create an eWallet app that delivers constant innovation to end-users? Running a fintech company isn’t cheap. You need funds to keep the platform up and running.

The money generated through app monetization lets e-wallet providers invest in research and development, innovation, and continuous improvement of their applications.

This will enable them to stay competitive, introduce new eWallet app features that enhance the user experience, and adapt to evolving market trends and customer expectations.

Reason 4: Service expansion

Effective monetization strategies provide the necessary financial resources for eWallet companies to expand their services and offerings.

This can be expanding partnerships with merchants, integrating with additional payment networks, or introducing new features and functionalities to cater to a broader range of user needs.

Reason 5: User experience enhancement

Implementing monetization strategies in a user-friendly and non-intrusive manner is essential to maintain a positive user experience.

By generating revenue, e-wallet providers can invest in user-centric improvements such as:

• Enhanced security measures
• Faster transaction processing
• Improved customer support
• Personalized features

Reason 6: Sustainability

A robust Android app monetization strategy ensures the long-term viability and sustainability of the e-wallet application.

By generating consistent revenue, e-wallet providers can continue to operate, innovate, and deliver value to users without relying solely on external funding resources.

Reason 7: Support and regulatory compliance

The fintech industry is filled with regulatory compliance like GDPR Compliance and PCI compliance.

Monetization strategies can help e-wallet providers comply with regulatory requirements by ensuring they have the necessary financial resources to implement and maintain robust compliance measures.

This includes investing in secure infrastructure, implementing anti-money laundering and know-your-customer procedures, and adhering to privacy and data protection regulations.

Reason 8: Partner and investor confidence

When you have a solid monetization strategy you can attract potential partners, investors, and financial institutions.

A clear revenue model and sustainable monetization approach showcase the viability and growth potential of the e-wallet apps instilling confidence and attracting potential collaborations and investments.

With all that out of the way, it’s time to look at how to monetize an eWallet app.

Best eWallet Application Monetization Strategies

Most start-ups fail in the early stages of e-wallet apps because they don’t ask the important questions.

“How to monetize the eWallet app?”

In this section of the blog, we shall be discussing the top ways to generate revenue through eWallet apps. So, let’s get right into it, starting with:

1. Advertising

Advertising is one of the oldest tricks in the book to monetize mobile wallets.

You can look at mobile apps as the billboards of the new age. Companies and people are willing to spend millions to advertise themselves, their services, or their products to the smartphone’s user base.

The monetization model is an opportunity to turn that demand into revenue.

Generating revenue through advertisements placed within or alongside the product or service. This can include display ads, video ads, sponsored content, or native advertising. Typically revenue is earned based on the number of impressions, clicks, or conversions.

Speaking of which, the revenue generated through these advertisements can reach millions in no time. That’s what makes it a popular model.

2. Subscription Model

Subscription-based monetization.

This is a popular business model that is followed by Netflix, and so on. These are also known as Subscription-based apps. We are all quite familiar with it.

Charging users a recurring fee to access the eWallet application and its different services. This can be a monthly, quarterly, or annual subscription. This model often provides additional features, content, or benefits to subscribers.

This is one of the top ways to monetize a digital wallet, so definitely consider this one.

3. Freemium (Free + Premium)

Whether you create a money transfer app or a good online app like PayPal, this is a strategy that won’t fail you.

We are talking about FreeMium Model.

Much like the terminology that consists of two words, FREE and PREMIUM, the model divides the app into two parts. While the basic version of the product or service is free, businesses charge a fee for premium features, functionality, or advanced content.

This model allows users to experience the product before deciding to upgrade to the paid version.

But this doesn’t end here, within the free version, you can integrate other strategies like advertisement and paid promotion to get extra out of the model.

4. In-app Purchases

If you want to innovate and take it from 0 to 100, you can start selling digital content and assets.

The money generated from direct sales can become a good revenue stream as some of them sell for upwards of millions. This strategy is what we call in-app purchases.

While it is not something that we often see in eWallet app monetization guides, it is a viable option, considering how digital wallets are turning into super apps.

5. Transaction Fees

eWallet apps are focused on one purpose i.e. making transactions possible.

This is a commodity that is rarely found in other areas of digital solutions. And even if they are, they aren’t as fast or secure as digital wallets. Based on this advantage, business create a renowned Ewallet Application Monetization Strategy, transaction free.

This becomes even better because eWallet integrates well and is often used with food delivery apps like DoorDash and other on-demand apps.

Businesses as a platform can charge a fee or a percentage of the transaction value for each financial transaction conducted through the platform or service.

6. Licensing or White labeling

It is no secret that a lot of businesses want to create an eWallet app. You can monetize this demand.

One of the unique ways to make money with an eWallet app is to white-label it.

You see, to hire mobile app developer to build a custom app is expensive. We can offer white-label mobile app development at half the price and no cost to your business.

In other words, you are allowing other businesses or individuals to license the product or service and use it under their branding. Licensing fees are charged based on usage or revenue generated by the license.

7. Data Monetization

Yeah, yeah, data monetization is quite a controversial topic.

But it doesn’t always have to be the unethical sort. Some of the largest platforms including (especially) apps like Instagram and YouTube, use big data to earn billions.

eWallet app with a lot of users can help your business aggregate and analyze user data to derive insights, and trends, or target and sell to third parties for marketing research or business intelligence purposes.

8. Sponsorship and Partnerships

Sponsorship and partnership are ways to monetize an eWallet app, as seen in Zelle’s business model.

Zelle as a platform is free to use for their user base. On the flip side, they are partnered with 1000s of digital banking apps and generate their money through them. Although this isn’t the highest earning platform, they have generated Millions in platform.

After all, collaborating with other businesses or brands to sponsor or partner is a good idea. Apart from revenue, it can also greatly increase digital footfall.

So, these are some of the best tips to monetize an eWallet app. Moving on, it’s time to learn from the best.

Top E-Wallet Apps & Their Monetization Approaches

Today, several tech giants have emerged with their unique monetization approaches.

Most digital wallet start-up fails when they don’t apply the right e-wallet monetization strategy.

That’s why we learn from the best eWallet apps that have implemented the right eWallet application monetization strategies to generate millions.

They are, as mentioned below:

1) PayPal

The OG in eWallet app world, PayPal has generated more than 25 Billion USD as of writing this blog. Let’s see how they do it.

• Transaction fees

PayPal charges transaction fees for receiving and sending money. The fee structure varies based on factors such as the transaction amount, currency conversion, and the type of transactions, like business or personal.

• Cross-border transactions

PayPal monetizes cross-border transactions by charging additional fees for currency conversion and international transfers like cross-border transaction apps.

• Merchant services

It also offers merchant services, including payment processing for businesses. It earns revenue through transaction fees and value-added services for merchants.

2) AliPay

A popular eWallet from China that has made 54.2 Billion USD uses the following monetization strategies for monetization.

• Merchant services

AliPay generates revenue by offering various services to merchants such as payment processing, customer analytics and marketing tools. Merchants pay fees for using these services.

• Financial services

It provides financial services like loans, wealth management, and insurance. Plus, it earns revenue through interest charges, fees, and commissions from these services.

• International remittances

AliPay charges fees for international remittances and currency conversions, generating revenue from cross-border transactions.

3) WeChat Pay

A super app in the digital wallet industry, here are the tricks used by WeChat to make 48.6 Billion USD:

• In-app advertising

WeChat incorporates advertising within the WeChat app, allowing businesses to promote their products and services to WeChat users. Revenue is generated through ad placements and sponsored content.

• Payment processing

It charges merchants transaction fees for accepting payments through its platform. The fees vary depending on the transaction volume and value.

• Financial services

It offers financial services such as wealth management and microloans. The revenue is generated through interest charges, fees, and commissions from these services.

4) Google Pay

Google Pay is one of the leading money transfer apps in the world. With the following strategies, this app has generated more than 11.8 Billion USD:

• In-app advertising

Google Pay integrates targeted advertising within its app, allowing businesses to reach users with relevant offers. Revenue is generated through ad impressions, clicks, and conversions.

• Peer-to-Peer Payments

It charges a fee for certain P2P transactions such as transferring money using a credit card. The fee structure may vary based on transaction type and amount.

• Partnerships

It forms partnerships with banks, financial institutions, and merchants. Plus, revenue is generated through referral fees, commissions, and revenue-sharing agreements.

5) Samsung Pay

Lastly, let’s look at how Samsung’s home-grown digital payment solution added another 2.9 Billion USD to the company’s treasury:

• Transaction fees

Like all others, it earns revenue by charging transaction fees for payments made through its platform. Fees can vary based on factors such as transaction volume and value.

• Partnerships and Co-Branding

Samsung Pay collaborates with banks, card issuers, and merchants for partnerships and co-branded promotions.

• Value-Added Services

It offers value-added services such as loyalty programs and discounts. It generates revenue by charging fees to merchants or earning a percentage of the transaction value.

Conclusion

eWallet mobile app is the new trending wave at the current time. Indeed, start-ups fail due to improper e-wallet app monetization strategies.

But don’t worry if you are planning to develop an e-wallet app, our team at Nimble AppGenie is an experienced e-wallet app development company that can help you with the app development process.

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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.