A Brief Guide to Mobile Wallet App Development or E Wallet App Development


Remember the times when we used to hide cash in those secret pockets of our bags? It was like hanging a sword over your head. One would always feel anxious worrying about whether their money is safe or not. Well, gone are those days now. The advent of Mobile or E-wallet apps has made it possible for individuals to roam without hard cash almost anywhere.

The IT giant Google introduced ‘Google Wallet’ in 2011. This changed the way we deal with payments. Eventually, as the world caught up with technology, Apple, Android, and Samsung E-wallets were released in 2014 and 2015. This was the beginning of disruption in the conventional online payment market. This blog aims to help one understand the working of Mobile or E-Wallets and what one needs to know in order to build one.

What is a Mobile Wallet or E-Wallet?

Mobile wallets or E-wallets are virtual wallets that store money, and information about your credit or debit cards. E-wallets are a convenient way for a user to make in-store payments to merchants that have listed themselves with the mobile wallet service provider.
Mobile wallets are classified into 3 basic types. Let’s find out what they are.

Types of Mobile Wallet Apps:

  • Closed Wallets : These are the type of wallets issued by established companies like Flipkart, BookMyShow, etc. Closed wallets are online accounts that a company uses while transacting with its customers. In the case of cancellation of a service or product from a customer, their refunds are managed through closed wallets.
  • Semi-Closed Wallets : These are the most prevalent wallets in the system. Google, Apple, and Android Wallets fall under this category. One can use them to transact online and offline while paying for services or goods, accessing financial services, and much more. However, it is necessary that the merchant adheres to the contract with the E-wallet service provider to support transactions through these payment instruments.
  • Open Wallets : This category of wallets permits a user to carry out all the transactions of the ‘Semi-Closed’ wallet and allows the user to withdraw money from ATMs and transfer funds. Though, they can only be issued by a bank or in a partnership with a bank. For example, i-Mobile by ICICI or M-Pesa by Vodafone.
If you are willing to invest in creating a mobile wallet app you must keep an eye on the stats that govern the current market and learn future predictions.
How Much Does it Cost to Develop an eWallet Mobile App_


Here are some interesting stats related to the mobile wallet industry.

  1. In 2020, the total transactional value of the digital payment segment is approximated to reach 4,406,431 million USD.
  2. The CAGR between the years 2020-24 is projected to be 17%. This would result in generating revenue worth 8,266,971 million USD by 2024.
  3. Up from 24% of merchants accepting e-wallet payments in 2015, the figure has increased to 29% in 2018.
  4. By the end of 2016, the revenue generated from mobile wallets on e-commerce platforms in the US was 22.7 billion USD.
The numbers are just too good to be true. Let’s understand which verticals are to benefit the most from the advent of mobile wallets.

How do Industries Benefit From Mobile Wallets?

Here is the list of industries and verticals that are making the most of e-wallet apps.

  • Retail & E-commerce Businesses :
    Retail & E-commerce businesses engage in a lot of transactions. Along with, the conventional ‘cash on delivery’ and ‘debit or credit card’ payment options mobile wallets act as a healthy addition to the mix. Especially, after the introduction of the Unified Payments Interface (UPI) that promotes real-time instant transferring of funds.
  • Telecommunication Companies :
    The telecommunication companies are on a roll. The mobile wallets support bill payments, recharges, and even transferring money to each other. Gone are the days when the customer had to seek a merchant or scratch a card to avail of a recharge.
  • On-Demand Services :
    Any on-demand services like food and grocery delivery can function much better by providing users with more options to make their payments. The expression ‘the more the merrier’ works best to explain this situation.
  • Financial Organizations :
    In this digital age, credit or debit cards are used globally to make payments. To add a little more convenience to the user’s life financial companies integrate mobile wallets that provide customers with direct access to make transactions.
  • Logistics & Transport Companies :
    One must have noticed the mobile wallet payment option while using OLA or Uber. OLA has created its e-wallet app that goes by the name ‘Ola Money’. This speaks volumes about how e-wallets are shaping the future of online transactions.

How to go about Building a Mobile Wallet App or E-Wallet App?

  1. Creating a mobile wallet is not a piece of cake. The foremost reason for that is, one would require a good legal team that has sound knowledge of how to seek appropriate permissions before one even initiates the development process. For example, you have to apply for a license with the Reserve Bank of India to launch a mobile wallet app in India.
  2. A mobile wallet company also studies the psychology of how its customers spend their money. This helps them primarily in adding or suggesting services and products based on the customer’s spending behavior.
  3. But, this isn’t enough. The supreme requirement for an e-wallet company would be the platform that would allow a user to make any of their transactions. To achieve this goal one would have to invest in a sturdy and adaptable tech that becomes an efficient reflection of the services the e-wallet company is trying to offer.
  4. You need to have an experienced IT team to build a highly functional mobile wallet app or a webpage. One that has had considerable experience with creating e-wallets. You can also opt for a professional IT service company that will assist you in mapping your e-wallet business model on appropriate platforms.
  5. Any app or web page development process is based on the Business Model of that particular business idea. Let’s catch a glimpse of the same.

E-Wallet App Business Model

The mobile wallet apps function quite similar to a bank but without paying interest to their users.

A mobile wallet app follows a similar principle to a bank.

All customers won’t withdraw or use the money from the wallet at the same time.

All customers won’t withdraw all the money from their wallets at the same time.

This allows them to generate revenue in the following ways:

Commission based revenue :
Nowadays everyone is prone to use e-commerce websites like Amazon or Flipkart. The mobile wallet companies charge commissions to these e-commerce channels when users pay using their platform.
You also get charged if you transfer funds back to your respective bank account from the e-wallets.

Interest-based revenue :
Unlike a bank, mobile wallets don’t pay you interest in keeping money in your wallet. But a mobile wallet company does deposit its clients’ money in a bank’s Escrow account. The bank would in return pay interest to the respective mobile wallet company. While the users whose money is deposited don’t earn any interest.

Ads based revenue :
You might’ve noticed plenty of ads while using a mobile wallet. The company promoting itself also pays the respective e-wallet company to use its platform for promotion.

Revenue from other businesses :
Paytm (an Indian mobile wallet company), has transformed an e-wallet app into a joint e-commerce app. There is a wide scope for introducing new businesses with a mobile wallet app. Hence, they can also earn revenue by adding different services or products to their platform.

Mobile wallet companies surely hold myriad ways to earn money. Learning how these business strategies would be transformed into an app is an art in itself. Let’s now focus our attention on how technology will transform this idea into reality.

React vs Flutter vs Ionic CTA2

Product Roadmap

A product roadmap is one of the first things that a developer or IT service provider plans while beginning with any app development process. A path that would plan how they would reach their desired goal.

We at Technource follow the Agile-Scrum Framework that acts as a guide for our app development process. Agile becomes a base for values and principles that guide the development process while Scrum acts as a framework that deploys tangible software solutions.

Scrum offers a transparent and iterative process. This allows the development team to avoid recurring problems they face with Waterfall Models. A detailed explanation of our core development process can be learned here.

Scrum offers a transparent and iterative process. This allows the development team to avoid recurring problems they face with Waterfall Models. A detailed explanation of our core development process can be learned here.

Mobile Wallet or E Wallet App Features:

A mobile wallet app would have three sides to its mobile or web application. They would be the customer, merchant, and the admin app respectively. Let’s have a look at the features that would be required to help this app function.

Customer App Features:

  • Easy sign-in/ sign up
  • User profile
  • App Security (Fingerprint or eye scanner, pattern or pin locks)
  • Wallet top-up/ Passbook
  • Integrating bank accounts/ Account management
  • Secure Payment Gateway
  • Dashboard
  • Scan to pay
  • Push notifications

Merchant App Features:

  • Sign in / sign up
  • User management
  • Profile Management
  • Add or remove products
  • Bank account management
  • Loyalty Points
  • Intuitive dashboard

Admin App Features:

  • Sign in
  • User management
  • Revenue management
  • Merchant management
  • Data analytics
  • Security management
  • Offer management

Why work with Technource?

If you’re someone who has a business sense but doesn’t understand the technical jargon associated with software solutions, you’re in the right place. We are fully equipped to understand your business ecosystem, brainstorm new ideas, and deploy software solutions that help shape your dream into reality.

Our experience in working with technology is a decade old. We through our Agile development process break down big complex projects into bite-sized pieces. The software requirements, goals, and situations can surely change but Scrum embraces changes by building software in a series of iterations. This helps our teams to ship high-quality work frequently while giving them the time to adapt and change.

We have developed numerous web pages using PHP and .Net technologies. PHP allows us to build budget-friendly responsive websites in a short period while familiar windows server environment and vast language support are some of the perks of working with ASP.NET

Our conventional native apps are managed using Java and Swift. We understand that creating apps using native technologies can be a bit costly and so we also recommend developing apps using hybrid technologies such as Flutter or React Native. Creating an MVP using native or hybrid technologies is also an option one can exercise.

If you think your e-wallet business idea could disrupt the existing market then we are ready to embark on this new journey with you. Let’s create history together.



Mr. Sanjay Singh Rajpurohit, An early-aged entrepreneur who always leads his team from the front and achieved success. As the founder & CEO of Technource, a top mobile app & Web development company, he made a global presence in a short time by offering custom software development, premium mobile apps, and website development services to global clients. In his free time, he loves writing. He is featured on Hackernoon, Dzone, Enlear Academy, Articlesfactory, and much more websites.

[contact-form-7 id="13581" title="Contact Form Footer"]