A study by Mordor Intelligence revealed that in 2020, the mobile payment market was valued at $1449.56 billion. The study also predicted that the market would grow with a CAGR of 24.5% over the forecast period to reach $5399.6 billion by 2026. Brick and mortar stores across the world are continuing to adopt and integrate mobile payment solutions, with some of the most popular choices Samsung Pay, AliPay, PayPal, and WeChat Pay, to accept digital payments. With the pandemic, there has been lifestyle changes, and changes with the way commercial activities take place. The digital payment trend will continue to grow for several years or maybe over the decade.
With more and more people leveraging instant payment capabilities via their mobile devices, many retailers have started focusing on enabling contactless payments and offering loyalty cards, discounts, and gift cards to encourage consumers to pay via online means of payment.
Now we know that there is a global demand for payment apps, let’s get straight into how to build a digital wallet that meets the customer expectations in 2021:
First, Understand the Industry Regulations
Being compliant to FinTech regulations isn’t very straightforward, as there are several regulations. FinTech companies have to follow. Mobile wallet compliances differ country by country, and you will have to be 100% updated with the requirements in your market. I would recommend you to read my previously published guide on FinTech Regulations – Fintech Business Compliances – An Overview
In addition to the country-specific compliances, you’ll also have to comply with PCI (Payment Card Industry) security standards that apply in the market that you want to opt for.
Which Mobile Wallet Software Development Kit Should You Pick?
Here I’m mentioning several Software Development Kits (SDKs) to help you build your e-wallet app. Don’t misunderstand SDK with an off-the-shelf platform. E-Wallet developmentis a full-fledged development process. The SDKs will only make your job a bit easier. We’ll talk about the e-wallet mobile app development process after the SDK options.
Mastercard Mobile Payment SDK
This SDK is provided by the financial services giant Mastercard. The Mastercard SDK includes a library of tools that help developers in building a mobile wallet app. Moreover, this SDK has a simple app and a testing simulator to ease out the process of mobile wallet development.
Here is the link to access the Mastercard wallet SDK – Mastercard SDK. To be noted that the Mastercard SDK only supports solutions related to Mastercard Cloud-Based Payment specifications only. As Mastercard provides this SDK, it supports transactions for both in-store payments as well as online mobile payment transactions. You can develop mobile wallets for both Android and iOS using this SDK.
PayPal Mobile SDKs
These SDKs come from the pioneer of mobile payments, PayPal. PayPal’s Braintree direct SDKs allow developers to build mobile payment wallets for both iOS and Android. The GitHub Android documentation for this SDK is available here, whereas for iOS visiting here.
Remember that FinTech regulations different from nation to nation. Braintree is ok to be used in some countries, while for some countries, PayPal provides an alternative method – PayPal Native Checkout SDK. This is a mobile version of the PayPal web checkout. You can get the complete documentation for this SDK here.