The barter system was replaced by cash; later cash was replaced by cards, and now people are switching to eWallets for transacting money. The pandemic played an important role in pushing society to accept digital wallets as a mode of payment.

People have gradually started enjoying using e-wallets as they get to transfer funds instantly and securely. Additionally, they also get rewarded with perks like vouchers, cashback, and coupons. In short, eWallet is the new mode of payment that is widely accepted; also smart business persons are looking forward to stepping into this industry and launching their own digital wallets. If you are one of them, partner with an eWallet app development company today. 

How does eWallet Application earn?

As we enjoy cashback and coupons upon using these electronic wallets, we must have wondered about the revenue model of these applications. Well, these mobile e-wallet applications earn through multiple sources. Their revenue depends upon multiple sources like – advertisements, partnerships, commissions, collaborations, etc.

That’s how these eWallet applications can reward their users and retain them for a longer time period. Also, the constant adoption of digital wallets will open up new ways to monetize e-wallet applications and generate massive profits.

Monetizing Strategies of eWallet Mobile Applications

Commissions – The first and foremost way ‌these businesses earn is by charging commissions to the users. Every time a user wants to make a transaction using the ewallet, they need to pay a specific amount for the same. This amount charged by the user is called a commission and is kept by the business for providing a platform to use digital payment services. The commission charges are not fixed; they might vary from application to application or the payment type.

Advertisement – Another main source of income for these eWallet mobile applications comes through advertisements. A user comes across multiple banners and popups while using the application. The eWallet firms charge huge amounts from the brands to advertise their products and services on their platform. Ewallet firms charge a handsome amount from the brands to flash their advertisement; the amount depends upon the advertisement type, the time span of the ad, etc.

Paid Collaborations - Ewallets also generate huge profits through paid brand collaborations. A user receives multiple discount coupons from brands as a reward upon completing a transaction. Well, the eWallet charges a brand to distribute its discount coupons among the users as a reward. This sort of tie-up is called paid collaboration, and digital wallet firms make massive profits from it along with rewarding their customers and retaining them.

Currency Exchange – A lot of digital wallets let their users store multiple currencies in a single wallet. However, if the user wants to swap a specific currency for another currency, then they have the option

 to do it. Anyhow, ‌users have to pay a specific amount to swap currencies. This money charged from the users is another source of income for such businesses.

Membership and Subscription – Lately, a lot of eWallets have introduced their membership and subscription plans for the user. All the users signed up for such subscriptions get VIP services and treatment from the application. It generally includes heavy discounts, early access, and other quality services for subscribed users. This monetization strategy is performing quite well, and applications are generating massive profits through it.

Final Words:

All the monetization strategies related to the eWallet application would be crystal clear by now. All the reputed and big eWallet applications are practicing it to get huge profits on the table. As this electronic wallet industry will be growing; new strategies to monetize will be introduced. Also, digital wallet firms are grinding hard to find new ways to make more money and stay ahead of their competition.

Frequently Asked Questions

1. How do I monetize my digital wallet?

There are certain ways to monetize a digital wallet. An application can choose the most-suited one according to its operations. However, advertisements and paid collaborations seem to be the most effective-effective ‌ way to monetize such platforms.

2. How does an eWallet firm make money?

The income of an e-wallet firm is diversified; they generate profits from multiple sources. The main source of income is commissions and paid collaborations.

3. How much does it cost to develop an eWallet mobile application?

The development cost of an e-wallet mobile application depends upon various factors like – the complexity of the application, the developer's origin, time period, etc. However, a rough estimate would be around $15,000 to $25,000.

4. How do I create a mobile payment application?

Developing a digital payment application is quite hectic and a complicated task. Thus, it’s better to get it done by professionals and experts in the industry. Prefer building a team of developers according to your budget and getting it done accordingly.