We are surrounded by numerous devices that have enhanced our way of living through advanced digitization. The generation has been introduced to an ease of living from which there is no going back. The most vital enabler of digitization is the smartphone. According to Statista, the number of operational mobile devices worldwide is expected to reach 17.72 billion by 2024, which is an increase of 3.7 billion devices as compared to 2020.
Digitization through smartphones has replaced our regular wallets with e-wallet platforms. Digital wallets can contain digital versions of user’s credit and debit cards. They enable the user to make quick transactions with just a few clicks on their smartphone.
Digital wallet solutions have garnered immense adoption in the online payment market as it allows fuss-free transactions and eliminates the waiting time of bill payments and money transfers. According to the Global Forecast Report by Market Research Future, it is estimated that the mobile wallet market will rise at a CAGR of 15% and is expected to reach nearly USD 2100 billion by 2023.
7 Crucial Features Required in the New-age Mobile Wallets
To build e-wallets, banks, financial institutions, and other financial enterprises are testing and employing every available application framework to deliver the best experience to their end customers. Fuelled by the COVID-19 pandemic, the utilization of mobile wallets has increased manifolds. Let us look at 7 features that must be included in the mobile wallets of 2021.
Seamless Transaction with User-friendly Interface
Convenience is the key to any service today. Completing a payment via an e-wallet should be quick and smooth as it is one of the primary reasons for its increased adaption. For merchants as well as individual users, an e-wallet app must have a user-friendly interface and dashboard. It should allow them to manage and track all the transactions held through the wallet or other features. Moreover, they should be able to check their balance, add money to the wallet, and access other in-app features.
Exceptional Privacy and Security
Despite the surging adoption, there are many individuals and merchants who have reservations regarding mobile wallets. Users fear the potential security threats as an e-wallet stores sensitive financial data and their money. An e-wallet must win the trust of its potential customers and users by providing exceptional security. A digital wallet must provide security features like biometric, OTP, QR code, and multi-factor authentication for proper validation along with a secure, fast, and efficient payment transfer.
Enabled with Navigation and GPS Tracking
Through mobile wallets, any individual or business can accept and receive mobile payments no matter where they are. GPS tracking & navigation is one of the essential in-built features of the e-wallet app as users can locate people on their devices and make the payment with just a tap on the specific username. This helps save time as no account information is necessary, and the transaction can be done efficiently.
A chatbot is one of the most user-friendly features that digital wallet applications must integrate. Chatbots help merchants as well as consumers to ask queries and get support round the clock. Chatbots are generally developed in applications through artificial intelligence. A chatbot support can help merchants and other businesses to stay connected with their customers 24/7 without having to incur additional expenses on customer services staff.
Near Field Communication for Contactless Payments
Near Field Communication (NFC) technology has powered contactless payments in the fintech industry which currently is the need of the hour. It is extensively used by top digital wallet players. According to a research, in 2015, the global NFC market size which was valued at USD 4.80 billion will increase 10 times by the year 2024 with an estimated valuation of USD 47.43 billion.
e-KYC compliance is crucial while developing an e-wallet solution as it serves financial institutions and banks to verify customer identity and avoid fraud. The compliance also plays an important part in securing regulatory approval for the e-wallet provider. To further add security to the KYC process, e-wallets are providing e-KYC with biometric solutions.
Apart from being a more convenient substitute for cash, e-wallets must enable their users with cross-border transactions. International remittance through mobile wallets is generally cheaper as they often have more competitive exchange rates and lower fees. Further on, sending money from one e-wallet to another is quick as the only information the sender requires is the recipient’s email address.
Developing a Customer-centric Mobile Wallet
Extensively used for electronic invoices, account security, hassle-free transactions, and contactless payments, mobile wallets are increasingly adopted by businesses and customers across the globe. With the MobiFin Mobile Wallet solution by Panamax, MNOs, MVNOs, Banks and Financial institutions can provide e-wallets linked to their core systems to their users. It has a simplified e-KYC process for wallet activation and enables users to easily send and receive money through simple clicks.