Cash on Delivery (COD) and cash payments are outdated and people are moving toward cashless payments. Your consumers need convenience and ease, and a small add-on of In-app wallet integration can make the process easy for them. 

For example, an in-app wallet integration in your mobile application can facilitate payment. For modern-day businesses, standing out in the crowd has become necessary and In-app wallet integration is something that businesses can not miss.

This blog aims to provide insight into the introduction of in-app wallets and why you need to introduce this feature into your application.

Types of In-App Wallet

There are multiple types of in-app wallets, each with its benefits and purpose.

Closed Wallet:

It is restricted to transactions within a specific application or platform, such as purchasing services or products. For instance, the in-app wallet of closed wallet Uber, Careem, Amazon Pay, and Uber Eats.

Semi – Closed Wallet:

It allows transactions within a broader network of merchants and platforms that have agreements with the wallet provider. include Paytm, Apple Pay, Freecharge, and Mobikwik.

Open Wallet

It offers the most flexibility which allows users to make payments to transfer funds to bank accounts and for a variety of services. You can even withdraw money from the wallet, Google Pay, Payoneer, and PayPal are examples of open wallets.

Cryptocurrency Wallet: 

Stores and facilitates transactions using digital currencies like Bitcoin or Ethereum within an app. Example: Coinbase’s in-app wallet.

Features of In-App Wallet

These features are an important part of in-app wallet integration so make sure to integrate these features while developing your in-app mobile wallet.

Secure Payment

Secure payments are the most important thing that a user wants from the wallet. Nobody wants their payments to vanish while performing any transaction. Therefore, it is highly important to integrate authentication methods, encryption, and OTP (One-Time Pin) in your digital wallet.

Stored Payment Information

Ensure that your In-app wallet integration allows users to store their debit or credit card information in the wallet for quick transactions.

Transaction History

It allows users to see a detailed overview of what they have debited or credited in the wallet which makes the tracking of transactions easy and convenient.

Multi-Currency Support: 

Support for multiple currencies is an add-on thing that you can incorporate into your wallet but you can skip this if you want. However, keep this mind that adding this to your wallet will give you an edge over your competitors.

In-App Wallet Integration Process

• Choose a Wallet Provider: Decide whether to build a custom wallet solution or integrate with an existing third-party provider (e.g., PayPal, Stripe, Apple Pay).
• Set Up APIs: Connect the app to the wallet service via secure APIs for payment processing, transaction handling, and balance management.
• User Authentication: Implement strong authentication mechanisms, such as biometric verification, passwords, or OTPs, to ensure secure access to the wallet.
• Wallet Funding Options: Enable users to link payment methods like credit/debit cards, bank accounts, or cryptocurrency for adding funds to the wallet.
• Transaction Management: Set up systems to handle real-time payments, refunds, transaction history, and notifications for users and merchants.
• Compliance and Security: Ensure the wallet complies with local financial regulations (e.g., KYC, AML) and integrates robust security protocols like encryption and PCI-DSS certification.
• Testing: Perform extensive testing, including payment flows, security features, and error handling, to ensure smooth functionality in In-app wallet integration.
• User Interface: Design a user-friendly interface within the app for easy wallet management, fund transfer, and payment initiation.

Common Pitfalls In Integrating Digital Wallet APIs?

One of the most common pitfalls is the complexity of the API (Application Programming Interface) which fails to handle the errors and exceptions. Second, is a poor user interface design that confuses the user and forces them to be stuck in between. Lastly, avoid deep testing, especially in scenarios like network failures and slow internet connections in a live environment.

Conclusion

The overall idea of this blog was to aware of the importance of in-app wallet integration in your mobile application and the best strategy to follow. In today’s era, it is highly recommended to integrate new technologies within your business and invest in your online presence.