Contactless payments, mobile wallets and payment apps, it’s a cashless economy the world is moving towards. People today want transactions that are faster, smarter, secure, simple and instant, and a mobile app based payment system makes all of that possible. The options today are so diverse and unique that users are often conflicted between choices. Selecting the best mobile payment app or system could get daunting at times, and with new players entering the market, with its unique features and functionalities, this is a new battleground we are looking at.

According to Cole Reports, the global mobile payment market was valued at US$ 816.50 billion in 2018 and is projected at US$ 5528.23 by 2025. This seems very much possible if one simply looks around at the grand canvas of mobile payments.

Mobile apps such as Google Pay, PayPal, Venmo are mobile-based pocket accessories today. From small businesses to larger conglomerates, personal and professional transactions have moved to digital platforms. And with the new norms of social distancing, it’s safe to say that AI based mobile wallets and contactless payments will be the norm.

What is a Mobile Payment app or Mobile Wallet?

A mobile payment app or mWallet is an application that can be used to make digital transactions through a smartphone. Users can download the app, top up or link their debit/credit cards and make payments. These wallets usually require extensive profile verification (usually using a government issued ID) and other measures to ensure payments are secure, convenient and ethically carried out. When it comes to mobile payments in retail stores, it usually involves scanning via QR codes or NFC technology (near field communication).

5 Best Mobile Payment Apps (and Wallets) for 2020

Before we look at some of the top mobile money and online payment apps let’s have a look at some of the key things to keep in mind:

• Mobile payments/wallets are government regulated and country-specific
• Apps are unique and each provide distinct features and functionalities
• Common app features include: location service, cloud based technology, integration with other software, loyalty and rewards, bill payments (utilities), chatbots solutions, improved AI implementations (face/image recognition, voice enabled) etc.
• In our experience as a top mobile app development company, we recommend building native apps for iOS and Android platforms for maximum reach, instals, and engagement

1. PayPal

The pioneer in the world of online payments launched in1998,  it still is one of the most popular payment applications. While it is very popular for peer-to-peer transactions, it is used in almost all categories of transactions.  It is simple, easy-to-use, can be used by everyone (except by residents of Latin America), and has been widely used by brick-and-mortar stores to go online. The mobile wallet takes security seriously, and integrates the best technology in place to ensure security features.

  2.Venmo

It is not surprising for users to often deliberate over which online payment app is safe? The number of FinTech apps are at an all time high, and security is of utmost importance.

Venmo has reached verb status in the vernacular and is one of the most secure and simple apps to use for money transactions. No surprise — it’s the most popular app for sending money among millennials. Not only is it easy to use, but it’s got a social aspect to it. There’s a bit of cachet in demonstrating a bit of flair in the way you annotate your payments. Whatever description you use appears in the public feed, giving you and your creative emoji placements an audience.

You can send money from the app to mobile numbers, email addresses, or Facebook accounts. All of these features for – $0. That’s right, Venmo balance bank and debit card transfers are totally gratis. You’ll only incur a fee if using a credit card.

  3.Google Pay

Google Pay launched in 2018, has been the game changer in several economies. The application has found its use in a wide variety of operations. Google Pay has already outpaced most of its rivals in terms of security and simplicity. Google Pay works the same as Venmo, but you send people money to their emails or phone numbers. Recipients get notified by e-mail and then go through a process to verify their identity to accept the money. It has been earlier criticized that it is not a fast platform, however, now it seems to have overcome that criticism as people are preferring to use Google Pay because of speedy secure transactions.

The app monetization strategy of these payments wallets are another interesting subject. Most of them are offered for free download, with zero to minimal transaction fees charged. There are apps that provide a subscription plan for advanced transaction services, but in general, it’s intriguing as to how free apps make money.

  4.Apple Pay

Any discussion which involves Google must involve Apple. Even in terms of payment platforms. Apple Pay is a fast-growing NFC based mobile payments platform platform that is widely used for peer transactions, online purchases, and even in-person payments. Users can transfer money via messages or with the help of Siri. Apple Pay is widely accepted, especially in retail stores, such as Target, Walmart, 7-Eleven, among others. Users generally require to key in a PIN, Touch ID, or Face ID to authenticate the transaction.

Apple Pay is widely used across North America (US and Canada), several countries in Europe and APAC, and sparingly in the Middle East and Latin America/Caribbeans.

 5.PayTM

PayTM, a mobile wallet available only in India has been around since 2010. PayTM offers online use-cases like mobile recharges, utility bill payments, travel, and events bookings as well as in-store payments and even educational institutions with the PayTM QR code. Extending its facilities throughout India in 10 different regional languages in addition to English. The app currently uses Artificial Intelligence algorithms to assign credit limits for loans for its users for purchases of grocery and retail goods. ‘Elite’ users can avail credit limits of ₹1 lakh while others have varying limits according to their credit history.

Final Thoughts

Mobile payment applications have been with us since 1998 (PayPal was launched). However, every mobile payments application is continuously evolving and each is trying to outdo the other. In a post-COVID-world, the rivalry is set to explode. Consumers in advanced economies will switch completely to a cashless payment system, small businesses in developing economies will lean more towards online payments, and there will be greater reliance on developing new solutions in Blockchain, Robotic Process Automation, AI, Machine Learning and Chatbot development services for the growth of mobile payment platforms.

At Day One Technologies, we understand the challenges and pitfalls of developing a payments app. Secure transactions, speed, UI/UX challenges, ASO methods are barely the tip of the iceberg. Everything comes at a price. However, they need not necessarily be expensive.

While there are no dearth to the number of challenges that are present to developing and publishing an app, we are here to provide solutions. If you are seeking consultation on your AI project or have an idea for building the next billion-dollar app, let’s connect and discuss!