Why Mobile Wallet App Startups Fail?Posted by Johny on August 28th, 2019 Digitization has taken money transactions to another level, wherein mobile wallets have taken away the need to carry cash or credit/debit cards. It’s better, really. Just scan the QR code and pay. This has led to businesses coming up with newer and better ideas to create mobile wallet apps to make life easier for their users. However, most new mobile wallet startups end up failing. Why? Let’s find out. First of all, we need to understand the difference between a mobile payment app and a mobile wallet app. Payment App vs Mobile App Wallet App A mobile payment app offers online payment services within itself and has a single task of paying via app to app whereas a mobile wallet is all your wallet stored inside an app, be it cash, cards, or even documents. So why would one choose a wallet app over a direct payment app? The answer is simple:
Now despite these benefits, why are so many startups failing? Why are most mobile wallet startups not able to keep pace with the existing ones? End-user dependencyIt depends upon the end-user, what their behavior is like and how they want their payments to be done. Would the user prefer to shop on these portals instead of going to the showrooms of the top brands out there? Humans don’t embrace change easy. It’ll be some time before we started trusting the web with our shopping needs so much. Different methods of payment Risk of investment Availability of options Security issues Another major reason is the security threat and the lack of trust people have in relatively newer apps. Most people aren’t very comfortable sharing card details with a new e-wallet. Thus, these apps have to work towards better encryption and safety methods like 6-digit pin locks, fingerprint unlocking, etc. There have been multiple incidences of bank frauds and money deductions from customer wallets and the money being stuck in various processes. Final Thoughts Source Url- https://www.appmystery.com/startups/why-mobile-wallet-app-startups-fail Like it? Share it!More by this author |