Future of Digital Finance with E-Wallet Innovations
With increased popularity among consumers in recent years due to its various expediencies, digital wallets in other words e-wallets, have replaced traditional payment methods like paper money and plastic cards and become an important part of digital transformation while allowing users to carry out financial transactions quickly, safely, and easily via digital platforms.
What is an e-wallet?
E-wallet serves as a prepaid account that allows users to make payments and transfer money, by digitally storing various payment methods within, such as debit and credit cards, bank accounts, and even cryptocurrencies. E-wallet providers in Türkiye are affiliated with the Central Bank of the Republic of Türkiye and are subject to the regulations it publishes.
How does it work?
First the user must register via either phone number or email. Next, the user is verified by personal information or through a KYC (Know Your Customer) process which often includes ID card verification with NFC scan and face recognition. Many wallet providers allow their users to use the application with some restrictions without any verification. The limitation on transaction amount and accessibility to the offered features may differ whether the user undergoes a verification process or not.
The user then connects their bank account to the digital wallet, either by linking it directly or by approving the creation of a new one by the wallet provider. Once connected, any funds added to the account will reflect in the wallet balance. Users may top up money from their bank account or use their credit or debit cards to do so. Users may also apply and receive loans from affiliated banks, depositing the amount into their e-wallets for future transactions. Either way, digital wallets ensure that card and bank account information, as well as personal data, are securely stored, typically transferring the related data encrypted.
The user is now able to purchase items, pay bills, transfer money to other accounts or pay for insurance while earning cashback in a fast, secure, and effortless way through their e-wallet. Services are often free or come with minimal transaction fees, providing an affordable option for users. The remaining balance can always be sent back to the bank account, it is up to the user’s preference.
E-wallet Solutions at Innovance
Examining the e-wallet solutions offered by Innovance allows us to identify the incentives that have contributed to the popularity of digital wallets in Türkiye.
Scalability: At Innovance, each e-wallet project, structured upon microservice architecture, yields unparalleled scalability and agility, reaching 1 million end-users and boasting an impressive daily active user count of 15,000. Our proficiency in technology equips us with extensive expertise, while our portfolio provides firsthand experience at the forefront. Here are some of our most well-known e-wallet projects, Vodafone Pay, Hayhay, Poca, Easycep and Başkent Kart. More projects are underway, reflecting our commitment to innovation and growth.
Fast Go to Market Time: Utilizing the modular feature set and responsive framework inherent in our white label solutions, along with tailor-made solutions, a new multilanguage e-wallet project can be customized and swiftly introduced to digital distribution platforms such as the App Store, Google Play Store and App Gallery in less than two months.
Safe and Secure: Since wallet providers rely on the trust of the users, we offer well-defined security measures. Our digital wallet solutions bring forth integrated two factor authentication to reduce fraud and tokenization to mitigate the risk of security breaches. Each wallet project within our portfolio undergoes penetration testing — a process where cybersecurity experts simulate real-world attacks to identify vulnerabilities. This meticulous approach ensures not only a profound understanding of our systems but also fortifies the security posture of our digital wallets.
Convenient and Fast: E-wallets offer contactless transactions via mobile devices, allowing users to withdraw money from ATMs, top up funds, make payments, and conduct seamless peer-to-peer (P2P) transfers by simply scanning a QR code or entering recipient details. Additionally, e-wallets provide access to personal loan services from partnered banks directly through the platform, enabling users to apply for and receive loans instantly like in Hayhay project. This feature allows users to conveniently access and spend loaned amounts directly from their e-wallets, enhancing platform utility.
Loyalty Cashback: E-wallets often integrate loyalty programs and cashback rewards to incentivize users to make purchases using the platform. Users may earn points or cashback for every transaction made with the e-wallet. For example, when users make fuel purchases using their e-wallets, like they do in Poca, they can earn points or cashback rewards. These rewards accumulate based on the amount spent on fuel, and users can then redeem them as cashback for future purchases, effectively saving money on their transactions.
Promotions and Discounts: E-wallet providers collaborate with merchants to offer exclusive promotions and discounts to users who opt to make payments through their platform. These incentives range from special discounts on products or services to bonus rewards and limited time offers. For instance, an e-wallet provider might define a campaign for Mother’s Day, offering cashback returns on every transaction made through the platform during the specified period like in the campaigns Poca offers.
Paying for Insurance or Invoices: Some e-wallets like Başkent Kart and Vodafone Pay, also allows users to pay for insurance premiums or invoices such as electricity or phone bills directly through the app. Users can securely store their payment information within the e-wallet and set up recurring payments for bills or subscriptions, streamlining the payment process and ensuring timely payments.
E-wallets offer various benefits, from enhanced security protocols to enticing rewards, ultimately redefining the management of transactions while enriching the user experience in a modern manner. Innovance’s innovative solutions have accelerated their adoption, offering scalability, fast deployment, robust security, and convenient modular features. As technology evolves, e-wallets will continue to shape the future of digital finance.
Writer: Melis Ergen
