How to Build an Efficient Mobile Wallet App Like PayPal in 2024

Mobile apps

We all are well aware of the most popular and one of the leading online payment processors, PayPal. According to Statista, there are 392 million active users in the first quarter of 2021. PayPal had generated around $227 billion in 2018. It represented 45% of annual growth.

Currently, many online payment services are available in the market, such as Amazon Pay, Google Pay, Apple Pay, etc. They are excellent payment gateways, but PayPal is always one step ahead of them. According to research, the total revenue of the eCommerce industry is expected to grow by $32.7 billion by a compounded growth of 12.9%. 


Due to the Coronavirus pandemic, the popularity of digital wallets has grown exponentially. As a result, many businesses across the globe are trying to build an app like PayPal. 

This article features a step-by-step guide on how to build a mobile wallet app like PayPal.

1 Project scoping

Project scoping refers to the term app development. You can choose any app development platform for your mobile wallet app. However, iOS and Android apps are ruling the development market. Thus, it is advisable to select your app development platform from them.

Also, identify your target audience. Observe which platform the majority of them are using and launch your app accordingly.

Your mobile wallet should have the essential features, such as core online payment features, ID verification, CRM features, and push notification. In addition, you are creating a mobile wallet app; therefore you must include the latest online payment features, such as an account for users, payment transaction records, easy returns, different login methods, etc.

Also, to avoid fraud, make it necessary to add a primary Identity card for both merchants and users. This way, you can prevent any mischief on your app and deliver a safe payment gateway for your users.

2 Select the right SDLC model  

SDLC-Software Development Life Cycle refers to the activities the software development team does to develop and maintain the software. Having the right SDLC strategy is essential for every software app development. Studies show that organizations were losing $97 million in a failed project for every $1 billion they invest.

SDLC phase consists of 5 phases.

  • Requirements
  • Designing
  • Development
  • Testing
  • Deployment
  • Maintenance

There are many SDLC models available in the market. SDLC models are designed to fit according to your project type or complexities.

Listed below are the various types of SDLC models you should know about.


In this model, the development cycle begins with the specification and implementation of just one part of the software to identify the additional requirements.


  • Developers can quickly develop a functional system with the essential project requirements and get the user’s feedback, reducing the risk.
  • You can quickly determine different sets of requirements. This way, developers can work on multiple projects at the same time.


  • Multiple requirement sets need more developers and testers. Thus, it can be expensive.
  • Non-core requirements have frequent changes and increase complexity.


Spiral is a combination of both waterfall and iterative SDLC models. It is one of the most essential SDLC models that supports risk handling. It has 4 phases- objective determination, identifying and solving the potential risks, developing the next version, and planning the next phase.


  • Customer feedback is available for each phase.
  • This model is flexible so that customers can easily make any necessary changes after each stage.
  • The team tests the project on each stage; thus, it is easier to identify the risks and eliminate them.


  • This is a complicated SDLC model; therefore, you’ll need a highly skilled development team. It may increase the budget.             

3 Formulate a Development Method

Every app development requires a development method. Therefore, your planning should consist of all the development arena and the correct tools. Also, if you want to expand your app globally, include that in your planning as well.

Use PaaS- a platform for web app development, and MBaaS- Mobile backend as a service for mobile app development. As we are developing a wallet app, you need to implement essential features, such as online payment, ID verification, and CRM using the Software Development kits (SDK), an Application Programming Interface (API).

4 Build a Scrum Team

Form your small team with project manager, business analyst, UI designer, Node.js expert developers, Android developers specializing in Kotlin, iOS developers with swift skills, and project tester. Your project manager should be well qualified to handle your team and run it seamlessly.

A scrum team works in a sprint cycle. A sprint cycle is a development process. Ideally, a spirit cycle should consume time according to the project complexity to get the best result from the team members.

A scrum team works on basic principles, such as empirical process control, self-organization, collaboration, prioritizing, time boxing, and iterative development.

5 Sign up for Cloud Management Services

Usually, the majority of online IT infrastructures try to avoid unnecessary investments. Therefore, they use cloud management services to speed up the development process. Using PaaS providers in app development has numerous benefits.

  • It makes the developer’s work easy by managing the cloud infrastructure, networking, server, storage, middleware, operating system, and run time.
  • The integration of 3rd party APIs and internal databases is easier.

6 Get an Online Payment Solution

Well, we are building an online payment application like PayPal. Therefore, it is essential to invest in the best online payment solution. You can use SDK/API solutions for online payment features.

Braintree Direct is the perfect online payment solution with numerous advantages, such as,

  • It can receive and process all types of online payments and accepts all cards payments.
  • It is compatible with all the platforms, such as Web, Android, and iOS.
  • It provides fraud prevention tools, such as encryption solutions.
  • Braintree direct makes it easy for recurring bills, updating the account, and robust reporting, due to the availability of numerous integration operations.

7 Produce an ID Verification Solution

With the increase in globalization, the risk of data theft is also increasing. Research shows that in 2018, a data breach exposed more than 5 billion data records.

Therefore, having an ID verification solution is essential to ensure safety and meet the financial servicing institute’s regulations. In addition, every online payment app requires its users to submit ID proof. Therefore, your verification solution should verify every ID proof and implement KYC- know your customer and AML- anti-money laundering process.

ID verification solutions can help to enhance the authenticity, security, confidentiality, and efficiency of identifying the customers while providing the services. Therefore, it benefits the financial and professional servicing firms.

Many ID verification solutions are available in the market, such as IDnowVIX verifyAcuantSocureJumio, and Onfido. All of these solutions offer numerous benefits, such as

  • Minimizing human weaknesses and errors.
  • Improve customer services.
  • Cost-effective
  • Transaction monitoring
  • Financial inclusion

8 Buy a Bulk SMS Plan

In today’s era, SMS services have become one of the essential marketing strategies. It helps businesses to reach new customers and keep them engaged in their business. Bulk SMS solution makes it easier for businesses to send a large number of text messages to their customers.

Usually, SMS has higher open rates compared to emails. That’s it is advisable to invest in Bulk SMS plans. The market has many SMS providers, such as TXTImpact, Shape software, UltraSMSScript, Simple texting, etc.

Investing in a bulk SMS plan has many benefits, such as,

  • Instant delivery
  • High readability
  • Reliable
  • Provides an efficient platform
  • Higher conversion and engagement rates
  • Offers more privacy
  • Cost-effective
  • Easy to implement

9 Develop your Web App

Now we know all the fundamental steps to build an effective mobile wallet app, it’s time to start the final app development steps. You need to find a custom mobile app development company that can ease your work and deliver your mobile wallet app.

You can either hire an outsourcing team or an in-house team for your custom app development project. Both teams have their advantages and disadvantages. However, you can choose one according to your preferences and the requirement of your project.

Custom app development has the same development process as any mobile app development. Mobile app development includes the steps below.

  • Planning
  • Finalizing the sufficient strategies
  • UX/UI design
  • App development
  • Testing
  • Application launch
  • Post-production support

Testing your app is one of the essential things in any app development. You need to test your mobile wallet app to ensure safety and functionality of your app. Ideally, you should test your app at each development stage to avoid the burden in the end and save additional costs.          


The Covid-19 pandemic made digitization essential for everybody. The majority of our routine work gets done via technology. From grocery shopping to health care monitoring, we are dependent on mobile apps. With everything turning digital, payment methods have also evolved.

Nowadays, the majority of people are using digital apps to fulfill their payments. So naturally, this spiked the interest of many people, and they started developing their own mobile payment applications.

Using the right technology and skills for custom mobile app development in this digitized era is essential. 

Still, with the correct strategy and custom app Development Company, you can create your app like PayPal and stand out in the market.

If you are looking for a custom app development company, you are at the right place.

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