How to Fund a Mobile Wallet

1

As an app developer, you may be tempted to create your own. Before you get too excited at the prospect, you should figure out how you'd fund your mobile wallet. By taking care of this point first, you can avoid a lot of frustration and wasted time later.

How to Fund a Mobile Wallet

Mobile wallet apps are more popular than ever.

}

©copyright 2014 Merchant Warehouse | Privileged & Confidential, do not copy without written consent

2

While each possess their own benefits, there are also drawbacks that you should consider before selecting the best option for your new

application.


Four ways to fund a mobile wallet

Virtual Currency

Pre-funding

Credit ACH

3

A pre-funded mobile wallet works like a gift card.

• Easy for developers to implement

• Lower Security Requirements

PROS

CONS

• Requires customers to continually add funds or risk the application not working

Funds are added, usually through a bank account, and are then available to spend.

Option 1: Pre-Funding

+ –


4

Option 2: Direct Bank Transfer/ACH Funding

• Ease of Use for Consumers

• Difficult to design and implement

• Lack of standardized system

• No authorization or dispute resolution standards in place

The only way to make this happen is through direct bank transfers, or ACH transfers.

A mobile wallet app is essentially linked to a user's bank account.

PROS

CONS+ –


5

Option 3: Credit Card Funding

• Ease of use for consumers

• Fees

This is a fairly straightforward option.

Users link their mobile wallets to their credit cards. Transactions are run on the card through the application.

PROS

CONS+ –


6

Option 4: Virtual Currency Funding

• Early adopters tend to gravitate towards “cool”

• Lack of acceptance

• Variable rates of currencies and exchanges

• Lack of trust from consumers/merchants

Can you imagine?

A day when virtual currencies like Bitcoin are accepted by most online retailers. Scoff all you want, but it's technically possible.

PROS

CONS+ –


7

Conclusion

Your focus should remain on ease of use, not only for your development team but even more importantly for the consumers using the application and the merchants that will ultimately accept it.

It is important to base your final decision on the preferences of your target audience, but keep things like risk tolerance and the relationships you have with financial institutions in mind too.


How to Fund a Mobile Wallet

Technology

Transcript of How to Fund a Mobile Wallet