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How To Develop An App Like Esewa

By Rupesh Ghimire

Introduction to E- wallets

E-wallet is a form of electronic card that may be used to make online purchases using a computer or smartphone. It functions similarly to a credit or debit card. To make payments, an E-wallet must be linked to the user's bank account.Over the last few years, the cashless business has experienced tremendous expansion. Today  an eWallet is a digital alternative to credit/debit cards and virtual currencies. The convenience of transactions made possible by mobile devices has made eWallet development one of the most popular sectors today.Both consumers and companies have benefited from the use of eWallet apps. eWallet transactions have become increasingly prevalent in today's market, whether the business is tied to supermarket shopping or an online ecommerce platform. The trend of eWallet mobile app development is predicted to grow in the future because it provides a convenient payment alternative.

History of digital wallets

Digital wallet was covered under the first patent covering the notion of a "digital wallet," which was filed in the United States in 1994 and issued in 1996. This was much before the advent of smartphones. Over two dozen related innovations were patented as a result.Sam Pitroda, who devised the digital diary in the 1970s, was the innovator who patented the concept. Pitroda envisioned a digital wallet to replace the leather wallet, with a back-end platform of a service provider, a bank, and a telecom carrier, similar to how digital diaries replaced paper diaries (and later became Personal Digital Assistant). The wallet was designed to work both 'over-the-air,' that is, over the Internet, and through NFC, or near field communication, technologies. One of the components of such a digital wallet was to be mobile banking, which is now marketed as a digital wallet.

Scope and Benefit of E- wallet in Nepal

Most of the beneficial developments in Nepal have been brought about by technological advancements, and the introduction of an e-wallet for cashless payments has taken a step ahead in the creation of a Digital Nepal.A digital wallet is similar to a real wallet that you carry in your pocket with physical money, but it is a virtual wallet or electronic wallet, so you don't have to worry about storing physical money in it.Your money is on the web in the digital wallet, and it may be used to pay, transmit, and receive money with only one tap. Most digital wallets are available on all platforms, including Android, iOS, web, and others, so you may carry merely your phone instead of a traditional wallet.The notion of an e-wallet was first presented in Nepal in 2009 with the launch of eSewa. eSewa was the only e-commerce application available at the time, and it had a monopoly on the market. Today, however, we have options for our e-wallet companions, such as Khalti. The majority of banks now have an e-wallet application.

The Scope of Esewa and Khatli 

The Nepali e-wallet app market is dominated by eSewa and Khalti. eSewa and Khalti are noted for their simple user interfaces and extensive feature set, which includes the ability to pay power bills, internet bills, recharge top-ups, and conduct e-banking transactions.

  • Esewa(Scope)

eSewa is Nepal's first e-banking application. It was discovered in 2009, and it was developed by F1soft. For the first few years, however, the company's SMS banking services were limited. The company created a mobile-based web application in response to the growing popularity of e-banking. Nepal Rastra Bank Limited has granted eSewa a Payment Service Provider (PSP) licence. The application is only 11 MB in size and has a simple user interface. It accepts a variety of payments, including energy bills, cell top-ups, school tuition, flight reservations, and more. The customer service department is quick to respond. The app is compatible with both Android and iOS devices.

  • Khatli(Scope)

Sparrow Pay Pvt. Ltd. created and owns Khalti, an e-wallet application. It was first released in 2017 and has made remarkable growth since then. Nepal Rastra Bank has granted it a Payment Service Provider (PSP) licence.The application is 14 MB in size, with a simple user interface, and a lot of functions. The app is accessible on both Android and iOS platforms. The customer service department is quick to respond. The app has various flaws, and some features, such as biometric locks, don't always work, however the business is constantly addressing them and updating the software.

Most common Challenges faced by  e-wallet Apps 

  • Regulatory Adherence

Legal standards must be followed by all mobile payment providers. This includes both financial and consumer-related rules. For new players looking to enter a new market, this can be a concern.

  • Risk of Fraud

One of the main reasons why most consumers are hesitant to adopt mobile wallets is because of this. Contactless payment poses a significant unknown risk of fraud, such as data leakage, hacking, undetected malware, and e-wallet flaws. Making technology safe for all users would help to prevent any potential financial fraud.

  • Perception Issues

Consumers still believe that mobile wallets are ineffective. They are still unaware of the advantages of mobile wallets over cash and credit cards. As a result, the majority of them continue to utilise credit and debit cards for online purchases and large purchases.

  • Mobile wallets have a low level of trust.

Consumers believe that adopting mobile wallets is a nice idea, but that it is not feasible. They believe that when they use mobile wallets, they give up a lot of control. According to YouGov study, 43% of mobile users do not trust mobile wallets, and 38% are concerned that if their phones are lost, they will be unable to make any payments.

Benefits of e-wallet apps 

The following are some of the most important advantages:

  • They could aid in the reduction of fraud

 Your actual card account numbers are not transmitted while making a payment because the data stored in mobile wallets is encrypted. Mobile wallets use one-time-use payment codes and frequently rely on security features such as biometrics to authorise a transaction. Furthermore, your full card account number is not displayed anywhere in a mobile wallet, preventing prying eyes from capturing it for future use. Furthermore, your transactions are protected by the same security and privacy safeguards that apply to physical cards.

  • They can help you save time

You can pay quickly with a mobile wallet by holding your phone over the payment terminal and verifying the purchase. The majority of transactions can be completed in a matter of seconds.

  • You have the option of reducing the contents of your wallet

 In addition to credit and debit cards, some mobile wallets can also store loyalty and gift cards, allowing you to keep them on hand at all times without adding bulk to your wallet.

  • You can shop online while you're on the go

You can use your mobile wallet to pay for some items instead than typing in card numbers when shopping online from your phone. When you shop online, using a mobile wallet instead of a card on file reduces the number of sites where your card numbers are stored while maintaining a quick checkout.

  • You continue to be rewarded

If your card gives you cash back or other incentives, you'll still get them if you use it in a mobile wallet. It may even be easier to rack up points if you constantly have your virtual card on hand.

Current Trends in the E-Wallet industry

Digitization of payments  was a big step toward the goal of creating a simple, convenient, rapid, and secure payment mechanism. All of it, it may be argued, has been accomplished. In the last four to five years, digital payment systems have undergone significant changes, and we should expect much more in the future.

The Current Trends in the industry are as follows:

  • Authentication via biometrics

In the year 2021, biometric authentication will become increasingly popular. Biometric authentication is a means of verifying a person's biological and anatomical traits. Fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and vein mapping are examples of these verification technologies.Biometric authentication can become a dependable and safe solution for all digital payments as identity theft and fraud grow more prevalent. Biometric authentication is a distinct and essential payment technique because it combines accuracy, efficiency, and security into one convenient package. Because it utilises an individual's unique traits, biometric authentication is a very secure method. This component also contributes to the development of client loyalty and trust.

  • Gen Z (or Generation Z for short)  The  tech-savvy generation

Before we go any further, let's define generation Z. Individuals born between the years 1999 and 2012 are referred to as Generation Z or Gen Z. In simple terms, everyone aged 7 to 20 is referred to as Gen Z, which is also known as the digital generation.This generation will be more reliant on advanced, automated, faster, and more efficient technologies and services. As a result, in the following year, demand for digital payment methods will skyrocket.

  • From  cards to codes

Initially, bank accounts were simply identified by the presence of random combinations of unique digits on the card. However, EMV (Europay, Mastercard, Visa) technology has increasingly gained traction, providing customers with a more computerised and secure payment process.EMV technology is recognised for using transaction codes that change every time a transaction occurs. The use of temporary codes improves bank account security by leaps and bounds. This example demonstrates how codes might influence how we manage bank accounts.Furthermore, cutting-edge payment services that provide more easy and smooth means of money transmission and storage are destined to eclipse the future of plastic cards.

Market Segmentation and buyer personas

The digital payments market encompasses all digital media transactions, as well as the products and services that go with them. Digital payments are a type of payment that employs a digital medium to send and receive money, such as the internet, cell phones, and automated equipment. It is necessary for both the payer and the payee to utilise digital means to send and receive money; however, in some cases, the payee does not have to use a digital medium to receive money.The digital payments market is divided into point of sale and online sale segments. Retail, banking, and financial services are the three end-user industries that make up the digital payments sector, telecommunication, government, transportation, and others.

The digital payments market is projected to be driven by quick onboarding and convenience of use. Individuals require onboarding that is flexible, clear, and frictionless. They are more attracted to techniques that are frictionless, and as a result, software innovators like Square and PayPal are employing automation to reduce onboarding time to a few minutes.In the digital payments business, contactless payments are on the rise. Contactless payments technology, such as mobile wallets, contactless cards, and others, are becoming more popular as they are more secure and easier to use. Radio frequency identification (RFID) or near field communication (NFC) is used in contactless payment technology to send money between users.

Business model of e-wallet apps

The e-wallet business model is a one-stop shop for all services that is likely to be around for a long time. To succeed in the digital world, one must experiment, invent, and develop a distinct e-wallet business model.

How can you create an eWallet that millions of people will love?

Mobile transactions continue to raise the stakes in the battle for supremacy. Smart devices are becoming increasingly important to customers.Smartphones, which are currently leading the smart device competition, have found a perfect place in people's lives.To create an e-wallet that is popular with your users, you must first comprehend their needs.There are numerous types of mobile wallets, and you must determine one will best serve your needs.

All you have to do is think about the following:

  • Online Payment

To make online payments, your user requires an alternative for debit and credit cards. With the help of a payment gateway, you must give them with a digital payment mechanism to pay merchants for their acquired goods.

  • Payments of sale (PoS)

A point-of-sale system is defined as a set of components that includes hardware, software, analytics, inventory management, employee management, and reporting.A computer with POS software, a barcode scanner, credit card reader, receipt printer, and an on-site server make up the system.

  • NFC (Near Field Communication) tags

These tags are non-interactive. This means they don't require any power to operate. To top it off, it only turns on when it comes into contact with a working device. The nicest thing about these tags is that they are incapable of self-processing. They are only used to send data to a device that is in use.

  • Scanning & Reading

The NFC tags can be used to transmit data. Simply place the NFC card or tag on the back of your smartphone, and all of the information will be gathered and displayed on your device.

  • Peer-to-peer money transfer(P2P) 

Digital money is transferred from one person to another in P2P payments. This is done through a P2P payment programme, which acts as a middleman. This method of payment necessitates the use of internet-connected devices. It's also a simple substitute for standard payment methods.

  • QR codes 

A QR code is a two-dimensional square-shaped barcode that contains data that has been encoded and saved. This information is essentially connected to a website. By integrating brick and mortar, QR codes are utilised to make payments easier and safer.A secure QR code is included in our white-label solution for e-wallet development.

Types of business models for e-wallet apps

  • Closed Wallet: Many well-known e-commerce companies, such as Makemytrip, Flipkart, and Bookmyshow, offer closed wallets to their customers. The customer gains the ability to use the money they've saved in their closed wallets to deal with other businesses that also provide closed wallets. Closed wallets are online accounts into which money is credited if a refund is issued as a result of a service or product cancellation or return. In addition, the businesses get interest on the money they put in the locked wallet. A closed wallet is an effective tool for gaining client trust by offering cashback rewards.

  • Semi-Closed Wallet: The best approach to send virtual funds to another wallet network member is to use a semi-closed wallet. Users can also transfer a specific amount of wallet balance to their bank account using a semi-closed wallet. In India, such wallets are quite popular because they have made online buying more easier while also providing a high level of payment security. Another reason for the popularity of semi-closed wallets is the ability to make quick transactions and receive prompt returns. If you wish to launch a semi-closed wallet business, you must first obtain RBI approval. Semi-closed wallets aid in online and offline transactions such as the following:

Key resources  required to develop  E-wallet app

  1. Designing an App

An online payment app's user experience is critical for attracting and retaining clients. Using upcoming technology that comes at a cost to create an intuitive, easy-to-navigate software that operates perfectly on all platforms is part of the process.

  1. Features That Work Together

The cost of developing a highly functional app would almost certainly be affected by the quantity and type of features. The cost of the most basic features will be lower than the cost of more particular or advanced features.

  1. Platform

The cost of your app is also determined by whether it is designed for a single platform or multiple platforms. The cost of an iOS payment app is less than that of an Android payment app. A mobile communication device, on the other hand,e-commerce platform is typically developed for both Android & iOS.

  1. Stack of Technology

It also differs based on the technology stack used to create the mobile app. Every platform and technology has advantages and disadvantages. When it comes to establishing a solid architecture, it's better to seek advice from a seasoned mobile app development business.

  1. The Development Agency's experience and skill set

Pricing also varies greatly depending on the skill set, credentials, exposure, and industry experience of the developing agency's resources.

Common Features of e-wallet applications

  • User Profile/Login

This login function requires the user to first download the e-Wallet software, after which they must register by providing basic information such as their name, address, and pictures. You may also allow users to log in using GMAIL or Facebook. This way, the user's log-in process will be shortened, and access will be quick and simple.

  • Sync Multiple Bank Accounts

When you're developing an e-Wallet app, this is the first question you'll ask the user. However, be certain that your eWallet app is absolutely secure and safe before proceeding. When creating an e-Wallet app for the user's convenience, the privacy of the user's data is critical. Here are a few things to follow to ensure that you always produce safe and secure software.When a user uploads his or her bank details to the app, they can now enter multiple bank account data. Allowing customers to add multiple bank accounts improves the usability of your app. People currently have many accounts with different banks.

  • There is no minimum transaction amount.

There are only a handful e-Wallet apps that have a transaction limit. Let's look at an example: if a user wants to make a payment through an eWallet app, he must pay the minimum amount established by the service's proprietors. If the minimum transaction amount is $50, consumers can only complete the transaction if they have $50 to pay. You won't be able to make any transactions if the amount is less than $50. This causes a lot of problems while making a payment, and it frustrates the user. To avoid this problem, remember to include the feature of "No minimum transaction limit" on your e-Wallet software for your business.

  • Option to Split Bills

This feature is available in many eWallet apps. Users can effortlessly split the bill among themselves with this option. Consider the case of three buddies who went out to lunch and one of them paid the bill afterward. Rather than accepting the money, you should now. The bill can be set through the e-Wallet app, and it may be easily split among three people. All of the other two can send the money to the person who is truly paying for the lunch. This functionality simplifies the payment process once more. This is another crucial function to include in your e-Wallet app development.

  • e-Receipts 

The message or detail that users receive after conducting a transaction through the eWallet app is known as an e-Receipt. If the user makes a $10 purchase, the deduction will be promptly communicated to the user via an alert message or as an e-Receipt from the app or a bank that has been added to the app. This simplifies, secures, and simplifies the digital payment mechanism.

  • Tracking via GPS

Users will be able to track their location where they utilised the app if this functionality is included in an eWallet app. It will assist you in keeping track of all of your purchases, including where and when you spent your money. In the event of any uncertainty or ambiguity, users can go to the details of their most recent transaction to determine where the app was used to make the payment. This operates similarly to e-Receipts in that users receive the deduction details as well as the name of the place or area where the app was used.

  • Points for Reward

Allow users to earn cashback while using the app. This will encourage more people to download the app. This is one of the marketing methods that many app owners employ in order to attract more users. Users make the most of the app in order to obtain more rewards and discounts.

  • Security and Privacy

This function protects and secures the user's bank account information and transactions. Everyone is extremely aware and vigilant when it comes to money. They desire complete privacy and security when using the apps. Money is directly engaged in e-Wallet apps, and users add their bank account information to the app. As a result, the app's software should be extremely advanced, and the most cutting-edge technology should be employed to safeguard it against hackers and fraudsters. You can do this by including or excluding a fingerprint scanning option in the app. That means that whenever the user wants to use the app, they can only do so by using their fingerprint. Optional one-time passwords (OTPs) can also be provided.When a user uses the digital payment app to make a transaction, he or she will receive an OTP, which must be entered before the transaction can be completed.

Why Bitsbeat

Before building an ewallet app, you need to take care of a lot of measures  like security,procedure and panels to build, test run of the procedures, evaluation and feedback after successful app prototype creation and launching the beta version.You should not be concerned about the complexities and tricks, experienced designers and developers at Bitsbeat will help you in building cost-effective and user friendly E-wallet Applications. You can expect modest UI/UX without duplicate features, visual enrichment, and data integration that perfectly blends your company values with the resultant product.


The rise of e-wallets contributes to the growth of e-commerce and improves retail payment systems by allowing for quick, easy, and safe transactions. It is in favour of the global shift away from cash-based economies.If you're planning to design an e-Wallet app, I hope you found this article useful. We've discussed the features, breadth, and industries where this eWallet app can be valuable.

Why should you invest in e-wallet application development? 

The popularity of digital payment applications that allow for touchless transactions has skyrocketed in the industry. Digital wallets are expected to grow from $1.04 billion in 2019 to $7.58 billion by 2027, according to estimates. It will grow at a staggering 28.2 percent compound annual growth rate.Here are the top 5 advantages of eWallet App Development for your organisation and why you should consider investing in it , in addition to its ease, scalability, and security:

  • Higher Conversion Rate: Are customers queuing to pay their bills? With a mobile payment app, you can give consumers the ease of purchasing things on the go and speed up their checkout experience. This will have a direct impact on their purchasing habits and increase your revenue.

  • Low Transaction Fees: Mobile commerce systems offer substantially lower transaction fees than credit cards, which feature hefty interest rates. Merchants can create their own payment card. It can function similarly to a gift card, removing the bank from the transaction and significantly lowering transaction fees.

  • Simple Refunds: Order cancellations and returns are unavoidable in the retail industry. However, with the help of a digital payment system, you may transform them into a fun consumer experience. It enables customers to receive refunds quickly and easily. This also implies that your customers now have cash on hand in their app, allowing them to purchase even more. In only a few clicks, business owners may retarget these clients with product adverts, encouraging them to make additional purchases.

  • Increased Revenue: Merchants can send personalised offers with discount codes to keep customers coming back by staying in touch with them. This can be done on a regular basis to enhance sales opportunities over time.

  • Increased Customer Base: Banks and financial institutions may swiftly reach out to new clients via mobile payment applications. Contactless payment systems that are well-designed and have modern technology.The bank's credibility is enhanced by qualities that allow business owners to see it as dependable and trustworthy. A touchless wallet is preferred by people all over the world. They'll rapidly move to you because of your strong security features, leaving your competition in the dust.

To conclude E-wallets have unquestionably changed the market. While internet and mobile banking have been available for a long time, digital payment apps have made transacting both online and offline considerably easier and faster. As a result, wallet service providers will remain in the market for a long time. They must continue to innovate and change their business strategy.BitsBeat is in the forefront of turning your eWallet solution into a money-making enterprise in order to win the competition. But, if you're still not sure and have a lot of questions, don't be afraid to ask.