Today\u2019s relationship with money that people have is heavily reliant on digitalization and technology since they provide the convenience of receiving and transferring funds with a few smartphone taps. E-wallets are now a habitual part of a commonplace technology user, which is why the e-wallet app development and the competition between products like this calls for a profound understanding of the user and finding a shared need that the product covers.<\/p>\n
So, let\u2019s discuss how a product like an e-wallet, be it a desktop site or a mobile application, is built. In this article, we will share best practices that have worked for Django Stars and explain how they work through every stage of developing such a product, from the discovery phase to its MVP.<\/p>\n
The first question to answer for those who want to build an e-wallet app is what an e-wallet is. Essentially, it is a piece of software that allows users to make and receive payments without carrying around a physical bank card. From the development perspective, the focus is on when the real money becomes digital and then back to real, and how the software keeps track of all the transactions and statements without any functionality bumps for the end user.<\/p>\n
Practically, when a company makes a salary or wage payment to one of its employees, the funds are transferred from a conventional bank account to an electronic wallet, which means that the money is digitized along the way. Once the money is in the employee\u2019s account, they can perform further transactions with it: transfer to a similar account of their relatives, transfer it to a conventional bank account, or purchase goods\/services from vendors who partner with the digital payment system the said employee uses. Hence, it is important for a user to have the freedom to use their money at their discretion, which is why it is paramount for the software developer to work through the process of digitalization and de-digitalization of the funds. Below, is how a transactional engine in such an application works.
\n![\"How](\"https:\/\/djangostars.com\/blog\/wp-content\/uploads\/2023\/11\/How-the-E-Wallet-Works.png\")
\nThe user\u2019s account balance is maintained by the transactional engine, which keeps a record of all operations virtual and \u2018hard\u2019 money. Thus, it registers every instance of turning conventional money into digital money and the other way around.<\/i><\/p>\n
In addition to virtual banking cards, an e-wallet allows storing and conveniently using other things that would normally go in a wallet: gift cards, tickets, reservations, and even documents. But the most immaculate part of development in such products remains the transfer of money.<\/p>\n
Before starting the custom banking software development itself, stakeholders have to envision the final product or its MVP in as much detail as possible.<\/p>\n
The first thing to consider is whether it will be a closed system<\/b>. In a closed system, the transfer is possible only between the wallet and the bank account. Alternatively, a user will be able to use their virtual card as a Visa or Mastercard for any transaction or purchase from a system that accepts such payments. Based on the system built into the said e-wallet, one can design additional functionalities of the app and see clearly what compliance certification that company needs for the product.<\/p>\n
Another critical concern in e-wallet app development is the architecture for third-party integrations<\/b>. Integrating pre-existing software into your system is faster and easier in terms of development and compliance certification since the technology is already created and all the compliances come from the said integration creators. However, such a product may be eventually harder to make changes in if the API is the core of the application.<\/p>\n
Once the functionality and architecture of the application are envisioned, the stakeholders have to work out ways to maintain the product\u2019s compliance and the user\u2019s data security<\/b>. It is a challenge to develop a user journey within KYC and onboard them in the easiest way possible while staying compliant. When this concern is worked out, the stakeholders have to have a clear idea of what documents the user must provide and how they can do it (online or in person) to start using the app.<\/p>\n
Based on the country of operation, one also has to have a clear idea of how data in the app will be protected<\/b>. Commonly, these regulations depend on the country of operation. For example, to comply with state regulations and pass the necessary audit, a company has to have its servers right in the room.<\/p>\n
To consider all the points above thoroughly and figure out how to create an e-wallet app, here is a list of questions that work for the Django Stars team while planning and developing an e-wallet.<\/p>\n