Remember the time when we used to carry cash with us to pay for any service or to buy something? But now that time has gone and traditional payment methods have been replaced by eWallet applications like PayPal, Google Pay, Amazon Pay, etc. These digital wallet apps have enabled users to have easy, convenient, and faster payment transactions without worrying about cash. Integration of advanced technologies into these wallets has made transactions more secure, and simpler. Not only one, but several industries are also adopting this trend and getting benefitted from modern technological advancements.
Now, when the world is moving towards a cashless epoch by obtaining mobile wallet app, sending, and receiving money instantly has become much easier. Because of the higher demand for these eWallet apps, businesses are stepping toward getting interested to create an eWallet app like PayPal by having mobile wallet app development services from reputed app development firms. For those who want to experience the industry, we have come up with the below guide about the necessary aspects accountable for the mobile payment app development process, related cost, market growth & statistics, number of features, monetization model, and different domains that are getting benefits through these solutions. Let’s dive into the details:
What is PayPal?
PayPal has been in the market since December 1998, it was launched by Elon Musk and some enthusiasts. Later in 2002, it was attained by eBay but in July 2015, it announced a separation publicly. Since then, the app has gained huge success including around 286 million active users worldwide and now, it has become the most widely accepted and used digital payment method. It is an easy-to-use, faster, and instant around-the-clock payment service provider that facilitates both shoppers and online vendors to have direct money transactions. PayPal has got everything you require, whether you want to transfer a big amount of money or a small amount like $25. Including this, it enables users to pay online and make direct transactions at a fast speed.
This is the reason why business vendors want to get the assistance of an experienced eWallet app development company to accomplish all their needs regarding creating a digital wallet app. All the information stored in payment apps is secured and encrypted that making the app reliable. PayPal is also beneficial for providing different services such as loans, credit cards, debit cards, shopping online, paying later, etc. rather than just payment transactions.
Working Process of PayPal Application
Having a look at the working procedure of the PayPal app will be useful before jumping into the process of how to create a digital wallet app. The app comprises a substantial system of different financial services adopted by numerous markets. The app has partnerships with other four famous brands involving Venmo, Braintree, Xoom, and Paydiant.
The app allows both individuals and enterprises to send and receive money but for this, users must create their profile including their banking details. There are provided two ways to create an account on PayPal- business or personal. Users can choose among them as per their requirements. After that, they can send or receive payments anywhere such as for online shopping, retail shopping, bill payments, from consumers, and so on. These transactions can be done via a registered mobile number on the app or by scanning vendors’ QR codes.
Read Also: E-wallet App Development Cost and Features
Have a Look at the Striking Statistics of PayPal in the eWallet App Market
In the eWallet app market worldwide, PayPal has marked some remarkable stats and market growth that show how successful it is. When you have decided to create a digital wallet app like PayPal, you must look at these figures to get an idea about its growth. As per the stats, PayPal has a consistent growth from the fourth quarter of 2021 that includes 13% growth year-by-year from the fourth quarter of 2020. Currently, in the first quarter of 2022, several total active users’ accounts on PayPal have marked around 429 billion.
Among all the industries, brick-and-mortar retailers and stores have also started to accept PayPal as a preferred mobile payment approach. Looking at the stats, PayPal has been accepted by a vast number of sectors due to its convenience which has been advantageous for them in numerous ways.
Similar Apps like PayPal Operating in the Market for Long!
Whether it is about paying the electricity bills or spending for shopping online, one needs payment apps everywhere. Though, there is a large number of business owners who are looking to have digital wallet app development so that they can have a PayPal-like app to gain several benefits. But the market is already flooded with many eWallet apps that seem to give tough competition to newbies.
Thus, while developing one, entrepreneurs need to study the existing giants to know what they should do or what shouldn’t. Here are some of them:
Features to be Added in Creating PayPal Like Payment Application
While developing a payment app like PayPal, it must offer an array of impressive features to keep the users engaged. Though, it will surely affect the overall mobile app development cost but will be worth it. These integrated features can be updated as per time and users’ feedback. Here are some important features worth discussing to know how to create an eWallet app like PayPal. Check them out:
After installing the application, the first thing users have to do is to create their profile including all the basic information such as name, address, contact details, email, and others. Then, users can log into the app with the provided credentials or from other linked Gmail or phone numbers to skip the lengthy process.
User Digital Wallet
There must be integrated a digital wallet space that will help to gather the card data of the app users. Users can transfer money from their bank account to it.
No Limit for Transactions
There should be no limit for every day’s transactions. Users must be enabled to send or receive the amount they want. It will make users keep returning to your app.
While making any transaction via a P2P app or digital wallet app, the user needs to verify that transaction by confirming OTP or their unique ID. A fingerprint scanner is provided integrated into a device that will help to verify the transactions.
Option for Splitting the Bill
There can be many times when the user needs to split their bills among people, hence the app should provide an option for dividing the bill between them. Integration of this feature will make payment processing much easier.
This feature helps to track the users’ location while using the app and records the details about their purchasing as well. It also acts as an e-receipt including users’ deduction details.
Real-time notifications are helpful to alert users whenever their eWallet app account gets credited or debited. These work as a reminder for the due date to pay electricity bills or whenever users get some offer or bonus.
Multiple Currency Support & Auto Conversion
A payment app should provide support for multiple currencies to enable users to make payments in different regions. Combining a currency supporter into the app will be really helpful as the whole conversion rate is based on it.
History & Payment Tracking
App users can track their completed, pending, or incomplete transactions along with the date, time, and amount. To make more use of this feature, weekly or monthly transaction reports can be sent to users via email.
Instant Chat Support
While getting details on how to create a mobile payment app, you must know that users can face a lot of issues when using the app. They should provide something such as chat support that can solve users’ issues instantly.
Messaging feature will help users to add details along with the transactions so that receiver will get to know about the transaction’s information.
eWallet mobile app developers always prioritize security due to the high risk relevant to the data transmission and data storage. Obtaining Blockchain development services is a useful approach when it comes to taking the benefit of peer-to-peer networks.
Cloud technology integration into the payment application by expert mobile app developers assures secure and faster transactions. It facilitates users with a broad range of functionalities via a single application.
Invoicing & Billing
Users can scan all the bills and invoices via in-built cameras on their smartphones or tablets. These can be shared with other users as well. Alongside, there should be created an automatic invoice for any kind of transaction on an individual level.
eWallet users don’t need to enter their login details again and again to use the application, they can save the credentials and can use the app conveniently by using the one-touch feature. There can be used fraud and buyer protection features to keep the users’ details completely secure.
Every payment application must integrate a unique QR code able to share with other payment app users to receive the amount. Users just require clicking the ‘share’ tab and then, the sender can transfer the amount by scanning that QR code.
While knowing how to make an app like PayPal, business owners must add this feature to receive an amount from the customers. In this, a personalized link can be created via a payment application like PayPal.
Appealing & Interactive UI
Providing users with an appealing and interactive user interface is one of the USPs of the application. There must be easy app navigation so that users just need to click on receive or send for any transaction.
Making users able to avail of discounts, cashback, and exclusive offers will help the app to gain their loyalty. Users will return to the app again and again to use those provided benefits and deals.
This feature is added to provide ease to the app owner. Through the web admin panel, the owner can control overall app activities while managing the app, editing & removing the elements, and more.
Different Ways Applied by PayPal to Generate Revenue
Are you thinking about how does PayPal make money? Here we have come up to solve your concern about generating the app revenue. A major part of the revenue is earned via the fees charged for international and domestic transactions. Below are some more ways to make money via PayPal like payment application:
1. Transactions by Users
Every mobile app development company must consider this monetization strategy to help businesses earn huge revenue. For instance, whenever a PayPal account holder in the USA transfers money to other users in the same country, they pay a 2.9% fee of the total amount along with a fixed fee called funding fees. This fee is charged when the transaction takes place via credit card, debit card, or PayPal credit. This charged fee goes higher when the transaction happens between a US-based and a non-USA-based account holder.
2. Commission for Selling the Goods
In the case of an online retailer selling goods or services while receiving the amount via a PayPal account, they must pay 2.9% of the total transactional amount including a fixed fee. It is also applicable to the funds approaching from the USA. There is 4.4% fee is charged for the funds coming out of the USA. If there is any offline transaction, there will be charged a 2.7% fee from the seller if the amount is coming from a US-based account holder. If the account is from outside of the USA, a 4.2% amount will be charged.
3. PayPal Pro
This monetization approach consists virtual terminal feature to get payments over an email or phone. We can call it an upgraded version for businesses to get online transaction services. Here businesses pay $30 as a monthly fee to use PayPal Pro. When it is about Virtual Terminal, there are charged 3.1% including $0.30 for every domestic transaction. There is extra $1.5 fee will be applied for cross-border transactions.
4. Interest on Money Deposited
Many users keep the money in their wallet as a PayPal balance that is used by the firm in the form of a deposit in liquid investment to get the interest. Businesses can use it as another way of generating revenue for payment applications.
5. Additional Services
The app can charge $10 monthly for a regular billing service. If users want to get advanced fraud protection services, they must have to pay an additional $0.05 per transaction.
Technology Stack to Integrate for eWallet App Development
Enterprises that are looking for essentials on how to create an app like PayPal must know about the integrated technology stack into a Payment application. An advanced app will be capable of competing in the market full of digital wallet apps. Have a look below:
- Front-end: CSS, HTML5, React.js, Vue.js, Bootstrap
- Back-end: Swift, Kotlin, Java
- Database: Apache Cassandra, MongoDB, MySQL, HBase, Postgres, etc.
- QR Code Scanning: ZBar Code Reader, ByteScout BarCode
- Payment Services: PayPal, Braintree, Stripe, PayUMoney
- Cloud Services: Azure, Google Cloud, SWA, Salesforce
- Push Notifications: Firebase Cloud Messaging, Amazon SNS, Twilio, Push.IO
- Real-time Analytics: Spark, Hadoop, Apache, Big Data, Flink
- Geolocation: Google Maps API
- Application & Data: Python
- Utilities: BitBar
- Business Tools: FogBugz, Jira, ProductPlan
Different Industries Getting Benefits From Mobile Wallet Applications
Nowadays, almost every sector is using eWallet apps to have a convenient, faster, and secure payment approach. Whether we discuss eCommerce, Finance, retail, healthcare, food, etc., in every domain, we can see the huge impact of digital payment solutions. Below we have defined a number of industries where eWallet apps are being used effectively, have a look:
1. Financial Companies
Financial firms are moving towards cardless processes by using mobile wallet applications. These digital wallets are helpful for them as they save debit or credit card information automatically for the users to log in next time with just one touch. They are not required to put all the details repeatedly and can make payments instantly.
2. Retail & eCommerce Business
eCommerce and retail industry are using mobile payment apps for a long time. It collects users’ purchasing habits and behavioral data. After buying, users can make payments via loyalty cards, coupons, and more. If you are thinking to enter a retail business and looking for how to make a digital wallet, then you need to understand all the trends and technologies required to integrate while developing different payment gateways.
3. Transportation & Logistics
We can see several successful taxi booking apps like Uber, Ola, etc. that are using varied digital wallet apps to enable users to pay conveniently. Even some taxi companies also use their customized mobile payment apps as well such as Ola Money, Uber Integrated Paytm, and so on.
4. Telecommunication Industry
The telecommunication sector facilitates its customers with mobile wallet apps to perform bill payments, send/receive money to other users, redeem, and many more.
5. Food, Grocery, and Event-organizer Industries
The food & restaurant industry is the most growing sector among all and hence, it needs to be updated according to the latest trends and technologies. Whenever a user orders food, they can pay via several options such as credit or debit cards, UPI, Paytm, etc. If they are out for dining, these options are still available for them.
Read Also: Top Fintech App Ideas to Start Your Business
Considerable Steps for PayPal like App Development
We are here to answer the question ‘how to create your own digital wallet’. To develop a successful online mobile wallet application, there is required a well-followed procedure considers all the necessary steps. We have come up with all the intricate details that you must take into knowledge while creating a digital wallet app.
Understand the digital wallet app development process through these below-mentioned simpler steps. Let’s begin-
Step 1: Project Scoping & Market Analysis
Before starting digital Wallet app development, the chosen mobile app development company needs to focus on the project scope comprising the app platform, basic payment app features, market statistics, competitors’ analysis, and many more. It is significant to pen down all the research and think carefully about what you should include and what should not. It needs a lot of brainstorming and deep examination to know how building an eWallet app like PayPal will be beneficial for your business.
Step 2: Interactive UI/UX
After examining the market scope and choosing an appropriate eWallet app development team, it is time to innovate something new and unique. There are chances you might iterate the app design repetitively to make it perfect. The app design must be easy and simple enough for users to navigate. For this, you can go for click-through prototype development including wireframing. You need to ensure that the design is interactive and responsive enough to get good reviews from the stakeholders and steal the attention of audiences.
Step 3: Apply SDLC Model & Robust Development Approach
The development phase is the most important step when it comes to how to build a digital wallet. eWallet app development companies must come up with a proper and strategic approach. They can take the help of SDKs and APIs to integrate the advanced features along with writing the code. Here, your selected mobile app development team must take advantage of IDEs and frameworks to increase the project’s speed. To make the solution more worthy, businesses can go for Cloud service platforms to get features like already built infrastructure, server, networking, middleware, storage, operating system, and current environment. Though it can surely increase the cost to create an app like PayPal.
Step 4: Get on with App Testing
Before the release of your created digital wallet application, it is needed to examine it on different parameters such as speed, performance, etc., and multiple devices & browsers. Properly testing the app ensures that the solution is free of all errors and runs swiftly in without any complexity. If there is found an error in the solution, it should be removed fast, and then, the app will be re-tested until it becomes error-free.
Step 5:App Deployment & Maintenance
After getting sure about the app’s performance, the digital wallet app can be deployed on the selected platform. Whatever platform you have chosen, there will be needed to follow the rules and regulations accordingly. Launching the app as per the guidelines will make the process faster.
Cost Assessment to Build an eWallet App like PayPal
While discussing payment mobile app development cost, there are various factors to consider including geographical location of the chosen development team or firm, number of basic and advanced features, app complexity, the price charged by the assigned eWallet app development company, modern market trends, time taken in the development process, and many more.
Adding to these, there are many more factors as well. Evaluating all these factors, the overall cost to develop an app like PayPal will range between $25,000 to $50,000, if you are integrating advanced features and functionality, this estimated cost can increase more.
After reading the above blog, do you have any unique ideas in your mind to develop an eWallet application? If yes, then give it the right direction to make it big in the payment mobile app industry. The industry is getting a lot of responses from different domains; hence one must try their hands to experience its potential and gain huge advantages. We can also say that it is the right time to invest in this sector looking at the high demand for eWallet solutions.
Though there is present an extensive range of digital payment apps in the market and new ones are coming every day as well. But by observing the market properly and analyzing the competitors’ capabilities, one can make it for sure. To get any type of assistance or guidance, SemiDot Infotech is always here for you! We have been in the industry for more than a decade and thus, we have enough experience to provide you with a profitable mobile payment app. You can contact us with any query or concern.