Internet of Things payments are a lucrative new field for FinTechs, banks, and OEMs \u2014 the same crowd attacking the mobile payment space. Though the IoT sphere is still not that crowded, it\u2019s surging in profitability. Matt Good, senior vice president and general manager of\u202fElan Advisory Services<\/a>, says in an interview with PYMNTS that the volume of wearables payments may soon top $500 billion. That said, IoT painfully lacks viable electronic wallet solutions to facilitate growth.<\/p>\n Supporting technology companies in launching their products is what drives us forward. We know how to build a digital wallet from scratch<\/a>, and in this article we share useful tips on how to make the most of your digital wallet app development journey.<\/p>\n Digital wallets, or eWallets, securely store a customer\u2019s details for various payment methods and enable IoT payments, allowing users to make purchases easily and quickly. Integrating QR code payments in digital wallets enables swift and safe transactions through smart devices by connecting a user\u2019s bank account to the eWallet payment platform. Transactions are made with a one-time scan, ensuring personal or sensitive data stays private and secure.<\/p>\n Among companies in the payment space, it has become mainstream to develop eWallet apps that seamlessly integrate with banking solutions, vending machines, cash registers, and loyalty reward programs. Below are just a few numbers to illustrate the digital wallet market dynamics.<\/p>\n Mobile wallets make up almost half of all<\/a> eCommerce payments globally. And this figure is only set to grow, projected to exceed 54% by 2026.<\/p>\n Source: Statista<\/a><\/em><\/p>\n The increasing adoption of smartphones, the proliferation of various connected devices, and the growing popularity of contactless payments have spurred demand for smart payments solutions. This has given rise to a host of innovative digital wallets that are quickly becoming the preferred payment option for consumers.<\/p>\n As the smart wearables market is booming and digital payments are on the rise, there\u2019s an open door of opportunity for new entrants to the payments space. Creating a digital wallet offers numerous advantages to businesses and can take the customer payment experience to a whole new level.<\/p>\n Implementing an electronic wallet system can bring significant cost savings for both businesses and users. Businesses can cut operational expenses by streamlining payment process flows and minimizing dependence on physical infrastructure. Besides, digital wallets allow companies to simplify financial reporting and accounting processes, bringing down administrative costs. On the other hand, users can benefit from lower transaction fees and budget-friendly offers provided by digital wallets.<\/p>\n Thanks to a well-thought-out digital wallet system design, users can easily and conveniently manage their finances, complete cash-free transactions, and access loyalty programs. Digital wallets eliminate the need for time-consuming steps like entering payment details and confirming identities. Instead, they accelerate transactions by storing card information securely and providing fast verification techniques, such as facial recognition and fingerprinting. This results in an instant checkout process and a seamless payment experience.<\/p>\n In addition, digital wallet technology can integrate different payment options by bringing multiple cards and accounts into a single unified platform. This allows users to view and manage all their financial operations in one consolidated place.<\/p>\n A well-crafted digital wallet can attract, engage, and retain customers by suggesting personalized offers, bonuses, and promotions based on users\u2019 spending habits and preferences. To attract more customers, some digital wallets also provide value-added features including cryptocurrency, virtual IDs, coupons, insurance cards, and tickets. Through this approach, electronic wallets nurture a stronger bond with their users, fostering a sense of loyalty and encouraging customers to return.<\/p>\n Digital wallets are gold mines of transaction data, providing valuable insights into customers\u2019 behavior, spending patterns, and preferences. Using advanced analytics, businesses can better understand their customers, personalize their offerings, and build informed growth strategies.<\/p>\n Digital wallet system design emphasizes user security through advanced encryption and authentication techniques, ensuring that personal data will never leave the user\u2019s device. Tokenization, biometric verification, and secure data storage protect sensitive data from potential breaches and fraud. As a result, users can rest assured knowing their personal financial information is reliably secured.<\/p>\nWhat is a digital wallet?<\/h2>\n
Key stats behind the digital wallet trend<\/h2>\n
![\"Prediction](\"https:\/\/d17ocfn2f5o4rl.cloudfront.net\/wp-content\/uploads\/2020\/04\/Digital-Wallets-for-IoT-Payments-update-1.png\")
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![\"Stats](\"https:\/\/d17ocfn2f5o4rl.cloudfront.net\/wp-content\/uploads\/2020\/04\/Digital-Wallets-for-IoT-Payments-update-2.png\")
<\/p>\nBenefits of building a digital wallet for your business<\/h2>\n
Cost efficiency<\/h3>\n
Frictionless payment experience<\/h3>\n
Customer engagement and loyalty<\/h3>\n
Data-driven decision-making<\/h3>\n
Hack-proof security<\/h3>\n
Why digital wallets are the key to capitalizing on IoT commerce<\/h2>\n
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