How to Make a Digital Wallet App? Must-have Features and Stages of Wallet App Development

Digital wallets are gaining popularity as a choice for consumers. E-wallets are incredibly secure and can store all the payment information compactly. In this article, we gathered information about the rise and types of digital wallets and shared some tips on the security of your app.

Mobile wallets are no longer just a trend; they have become a need of time

Electronic wallets started to gain popularity at the beginning of the pandemic, being the most hygienic way to pay for goods and services. And now, they are not only the most hygienic but also the easiest to use. This tool allows consumers to access information and the history of their transactions in a few clicks.

​​A digital wallet is an application aimed at simplifying financial transactions and operations. In such apps, users can send and save money, buy anything in offline or online shops, and use their credit and debit cards, loyalty cards, and coupons. Those Thoselar to physical ones but are safer and have more features.

Such a system can store information about transactions in one place to make life easier by giving users quick access to their payment information from anywhere. The most commonly used forms of e-wallets are mobile apps, but they also exist in desktop versions or other forms.

According to Juniper Research, the value of digital wallets transactions will increase 60% by 2026:

uniper Research, the value of digital wallets transactions will increase 60% by 2026:
Digital wallets transaction value to grow by 2026

Why are digital wallets better than physical ones?

  1. They reduce fraud cases: the data stored in mobile wallets are highly protected and encrypted.
  2. They are easier to manage: no need to carry cash or credit cards. All the financial information about transactions is stored inside the app. Some e-wallets allow you to store coupons, gift cards, concert tickets, and insurance cards.
  3. They save time. Users don't have to type card numbers when shopping online. They have to remember only one password to the digital wallet instead of many. You can use such applications to make online and in-store purchases, pay bills, transfer money, and make deposits.

Industries that benefit from mobile wallet application development

Not only users can benefit from e-wallets. Such technologies can be helpful to many industries, especially:


In a customized medical digital wallet, patients can accommodate their medical records, all past, and present treatments, vaccination records, medicine intake, and much more.

Retail and Commerce

In this industry, especially ecommerce for small businesses wallet apps can help users to store important information about their sales and to gain benefits from payments with loyalty cards, rewards, coupons, etc.

BFSI (Banking Financial Services and Insurance)

Banks and financial institutions are now more accessible than ever. Adding an e-wallet feature can simplify many procedures in the BFSI. Offering a digital wallet could give banks access to personal information, making it easier to conduct customer checks and other regulatory actions.


As technology progresses, consumers expect all services to be more flexible. Now, telecoms have become more responsive to their users’ needs. Telecommunication companies are the major players in the financial segment, so the digital wallet has become a great solution to their customers’ changing needs.

Types of digital wallets

There are many types of e-wallets:

Closed wallets

When a company that sells goods or services creates its wallet for its users only, it’s called a closed wallet. This type of wallet enables customers to use the funds stored to perform transactions only with the issuer of the wallet. A great example of this technology is Amazon Pay.

Open wallets

Open wallets allow users to buy products or services, withdraw money from ATMs or banks, and transfer funds. It’s important to mention that only banks or institutes partnered with other banks can issue an open wallet. The most popular example of an open wallet is PayPal.

Semi-closed wallets

A semi-closed wallet enables users to make transactions with available listed sellers and locations offline and online. Nevertheless, merchants should sign an agreement with the issuers to accept payments from mobile wallets. Since non-financial institutions offer semi-closed wallets, the only limitation is that users withdraw cash directly.

However, the chart below shows that semi-closed wallets are and will be the most commonly used among the abovementioned types.

With these wallets, users can store and manage their cryptocurrencies.

IoT wallets

Mobile wallets are no longer limited to just mobile applications. The evolution of payments allows us to perform transactions from wearable devices and appliances.

Must-have digital wallet features to include in your app

Here are some basic and advanced features that will help your product stand out in the market:

  • User Registration
  • Card authorization
  • Transaction history
  • Bill payments
  • The option to add and check account balance
  • Push-notifications

Other good-to-have features of a digital wallet app

  • Loyalty cards
  • Bill splitting
  • Loyalty reward offers
  • Gift cards
  • Geo-targeting
  • Exclusive offers
  • Membership cards/discounts

Stages of a digital wallet app development

The development process of any app consists of a few stages. E-wallet apps are complex systems, so they should be made in 2 phases: the Discovery stage and the Wallet Development stage.

Discovery stage and Prototype

During the Discovery phase, you will need to clarify the project goals, and the ElifTech team will help you to identify the risks and get to know the users. Our team will consist of:

  • a business analyst who will analyze the business domain;
  • a system architect who will create and define the software architecture, and
  • a UX/UI designer who will make the user-centered design to make your app user-friendly and, therefore, competitive on the market.

At ElifTech, we believe that professional UX/UI design is the key to success. Designers will help you achieve the perfect user experience for your application and create an easy-to-use interface to make interaction with the app as smooth as possible. For a good user experience, it’s crucially important to understand and predict some usability issues at this stage to avoid and fix them before the development phase. To achieve this and meet consumers’ needs, our professionals define a product, do research and competitors’ analysis, then make a prototype and design your application.

Wallet Development and Quality Assurance

During this stage, our mobile developers will write code to bring a design from a previous step into an app. This process consists of building parts of the app that are visible to users and those that are not visible but still important. In this phase, our specialists will ensure the security of your app. Security should be a priority for digital wallets to prevent data leaks and breaches.

In order to minimize and prevent defects in your app, our Quality Assurance engineers will seek and fix the issues. QA and testing encompass all activities that help ensure a product meets quality standards and requirements.

App Launch and Promotion

When the previous steps are completed, you can show and promote your app to the world. During the promotion, you can set up paid and targeted ads and use App Store optimization tips, influencers, or celebrity endorsements to reach your consumers. Keep in mind that the quality of users you attract to your app is more important than the quantity. Ensure that you know your target audience and make your advertisements accordingly.


Developing and launching an app isn't the end. Technologies make progress every day, so your app needs maintenance to fit into the modern world's standards. Users always want the latest and flashiest app features. Apps require a lot of maintenance to uphold their quality standard.

Therefore, maintenance becomes one of the most essential phases of the digital wallet app development lifecycle.

Things you need to consider while creating a digital wallet


Your digital wallet app can be successful only when the customers can rely on the security structure. The e-wallets require storing sensitive data like biometric and card information. Ensuring security is a top priority for our company, so we use advanced technology methods to comply with standards and requirements.

Important aspects of e-wallet security:

  • Tokenization the process of exchanging sensitive data for nonsensitive data called "tokens" that can be used in a database or internal system without bringing it into scope.
  • Two-factor authentication – one more layer of protection used to ensure the security of accounts beyond entering just a username and password. This type of protection works by the following principle: it uses two unrelated authentication methods to secure an account.
  • P2PE (Point to Point Encryption) – is the standard for all cardholder information required by the PCI SSC (Payment Card Industry Security Standards Council). The standard aims at immediate encryption of cardholder information after it is read.
  • PCI DSS (The Payment Card Industry Data Security Standard) - is a set of security standards created by Visa, MasterCard, American Express, JCB, and  Discover payment systems. Those standards are designed to ensure that all companies that process, store or transmit credit card information maintain a secure environment.
  • SSL (Secure Sockets Layer) – a protocol for encrypting data transferred between two computers in a secure manner.

Location-based service

A location-based service (LBS) collects and processes the geodata of the devices. LBS is commonly used for mobile notifications, information filters, personalized suggestions, and fraud prevention.

There is a variety of digital wallet apps. Here we pointed out some of the most popular in the world:

  • Google Pay
  • Apple Wallet
  • PayPal One Touch
  • AliPay
  • Amazon Pay
  • Samsung Pay
  • Fitbit Pay
  • Garmin Pay
  • Venmo

Our experience in building digital wallet apps

If you are interested in building your own digital wallet app, our dedicated team of specialists will help you to bring your idea to life. Here you can read our case study about an e-wallet solution that cuts expenses and makes it much easier and more convenient for education organizations to manage their cash flow. The platform has quickly gained popularity and is in demand among its users, with a customer renewal rate of 98,9%.
ElifTech is a trusted and experienced app development company that complies with the standards in the FinTech industry. Working with a team of professionals who want to bring changes to the world with high-quality products, we provide our services with an individual approach to every company.

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