Ewallets Trends and Their Challenges in 2023

This article discusses the latest ewallet trends and the challenges faced by these digital payment systems. It explores how e-wallets are changing the way people make transactions, and the potential benefits and drawbacks of using them.

In 2023, the popularity of E-wallet app development is rising as e-wallets are surpassing the market. 80% of Americans are using some form of digital payment.

Wondering why they are popular? The first thing that comes to our mind is the convenience it provides to the users. With convenience it also enables users to store their credit and debit card details and easily make payments via them. The best thing about the eWallet app is that users can make payments by scanning a QR code and securely transfer money to the registered eWallet.

According to the reports, the global market eWallet size was valued at USD 6.2 billion in 2021 and is expected to expand at a compound annual growth rate of 27.4% CAGR from 2022 to 2030.

This data is encouraging enough for you to start the eWallet app development. However, developing an eWallet is a complex task so make sure that you hire expert developers that have proven industry experience so they can convert your idea into reality.

In this blog, we shall be covering topics such as:

• What is a digital wallet?
• Latest Trends of eWallet
• Issues & Challenges while developing eWallet in 2023

So without wasting further time, let’s begin!

What is a digital wallet?

Ewallet is also known as a digital wallet, they enable the user to make payment with the help of a digital wallet. Users can store their credit or debit card details and use them while making payments.

Moreover, Ewallet stores user transaction history by which they can easily manage their spending limit. With the help of a digital wallet, one can book tickets, public transportation passes, and gift cards.

Some digital wallets can help you with trading and helps remove the headache of carrying cash. It simplifies cashless transactions and the popularity of the e-wallet trend in Malaysia is that 96% of Malaysians are using eWallet apps on daily basis.

Let's look at the latest technological trends of eWallet in the next section.

Latest Technological Trends of eWallet

When you start your e-wallet you have to know about the latest trend in eWallet so that you can easily pitch your idea to an e-wallet app development company.  Moreover, electronic wallets have been around for a while now and have become an increasingly popular way to make payments and store money digitally.

Here are some of the latest technological trends in eWallet are mentioned below:

 

1. Biometric Authentication

When designers develop the eWallet app by keeping E-Wallet Design Guide in mind they integrate biometric authentication to ensure the security of transactions. This includes face recognition, fingerprint, or iris scanning technology to authorize transactions.

2. Blockchain technology

The integration of blockchain technology in eWallets provides transparency and secure transactions. Moreover, blockchain technology can prevent fraud and data breaches, and unauthorized transactions by providing a decentralized and immutable ledger for all transactions.

3. Voice-activated payments

The finance industry is adopting voice-activated payment technology to support voice payments. Several apps integrate with mobile phones' AI or create their version.

4. NFC ( Near Field Communication ) based Payment

NFC technology is mostly used in eWallets they are more convenient than traditional eWallet. Users can make contactless payments by tapping on their smartphones or other NFC-enabled devices on the payment terminal. Additionally, some of the NFC-enabled eWallet include Apple Pay, Google Pay, and Samsung Pay.

 

5. AI and machine learning

AI and machine learning are always the top priority when businesses create eWallet apps. Most banking application use AI and machine learning for their digital payments. Moreover, for fraud prevention, AI and ML-based apps will be used frequently. 

6. Loyalty programs

Ewallet is also integrating loyalty programs, that help user to earn rewards or cash back for using their eWallet transactions.

Now you are wondering how to create e-wallet app in android studio, it is recommended to contact an eWallet app development company. But before you hire one, read about the issues and challenges while developing eWallet in 2023.

 

Issues & Challenges while developing eWallet in 2023

EWallet app development is a complex task when you don’t have the right team of developers by your side. There are so many e-wallet issues and challenges that one faces while developing the eWallet app in 2023.

Here are some of the major issues and challenges that users might face in the eWallet app development.

Security and Privacy concerns	This is a major concern while developing the eWallet app. As more and more people are adopting eWallet apps for transactions, they are more vulnerable to data breaches and security threats. Moreover, the developer will need to ensure that the eWallet is secure and comply with privacy regulations.
User Adoption	The benefits and convenience it provides to its users but still, some users prefer traditional payment methods such as credit cards and cash. In addition, developers have to develop an app by taking care of the e-wallet system design this will eventually make eWallet user-friendly.
Technological hurdles	This is the most common challenge developers face while developing the eWallet app includes proper integration with payment systems and compatibility with different devices. Moreover, the developer has to overcome these hurdles to make a product secure and user-friendly.
Customer Mindset	Most customers still use cars and cash to pay, changing their mindset toward using eWallet is crucial.
Fraud detection and Mitigation	This is the main reason people avoid using eWallet. If your e-wallet is secure with advanced technology it will easily win the trust of users across the world.
Less awareness	Many people still prefer cash for payment because they find it hard to understand eWallet. However, these challenges have to be quickly addressed if you want your eWallet to be successful.
Lack of trust	User has trust issues related to privacy and confidentiality that’s why user don’t prefer using eWallet for keeping their money in it.
Integration with existing systems	Many eWallets require integration with existing payment systems, such as point-of-sale terminals and bank accounts. This can be a complex process that requires collaboration between eWallet developers, financial institutions, and merchants. eWallets must integrate with various payment systems, such as credit cards, bank accounts, and digital wallets, to provide users with seamless transactions. Developers must ensure that the app can interface with these systems and handle the various data formats.

 

These are the major challenges and issues faced by the developers while developing eWallet apps. After knowing the issues you can easily overcome them in your eWallet app development. However, some of the best beneficial Ewallet apps are Apple Pay, Google Pay, and Samsung Pay.

Conclusion

eWallets app development are becoming increasingly popular as people seek more convenient and secure ways to make payments. In 2023, we can expect to see continued growth in the use of eWallets, along with new trends and challenges in this space.

One of the key trends in eWallets is the integration of new payment methods and technologies. For example, we can expect to see eWallets supporting crypto currency payments, as well as the use of biometric authentication methods like facial recognition and fingerprint scanning.

However, there are also several challenges that eWallet developers will need to overcome in 2023. These challenges include security concerns, user adoption, integration with existing systems, interoperability, regulatory compliance, and infrastructure and connectivity issues. We hope that with this blog you can easily overcome the challenges while developing an eWallet app.