3 Ways To Pick The Best Digital Wallet For Your E-commerce App

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Until recently, only a minor chunk of the retail transactions were being conducted electronically, thanks to several factors such as underbanked consumer and merchant segments, underdeveloped digital-payments infrastructure and services, and a cultural bias toward cash. 

However, with the entry of new local, regional, and global payment providers, the situation has changed rapidly. Moreover, the COVID-19 pandemic has triggered an acceleration of digital adoption and a flight from cash, as it has in other regions.

In countries like India, the total volumes of digital payments have increased from around 1459.02 crore in 2017-18 to 4371.18 crore in 2020-21 due to enhanced efforts towards digitalization. 

Not only has this digital boom opened new avenues for business owners, but it has also become more and more challenging to choose from a variety of digital payment vendors out there. 

Especially if you are an eCommerce platform owner, you would necessarily want to offer your customers a safe, quick, and easy-to-use payment system. The chosen digital payment solution has to satisfy both the needs of your customers and your business.

So, it has to be protected from fraud, be convenient to use, and easily compatible with your platform.

So, let’s talk about some of the most important things that E-commerce companies must keep in mind while integrating the best digital wallet into their E-commerce mobile apps.

How to Choose The Best Digital Wallet To Integrate

One of the biggest challenges is choosing the best digital wallet for your E-commerce app. The market is dominated by names like PhonePe, GPay, Paytm and Paypal. However, there are several factors to consider while choosing which payment vendors you want to integrate to your mobile app. There are various ways in which you decide which wallet suits your requirement.

1. Consider Fees and Service Agreement Requirements

Payment processing is complex, as it includes several financial institutions or organizations. Like any service, a digital wallet’s payment gateway requires a fee for using third-party tools to process and authorize the transaction.

Every party that participates in payment verification/authorization or processing charges fees. Transactions commonly are billed according to the amount, location (across a certain country or international), and type of a product (physical or digital).

Good Read- 7 Essential Growth Hacks for E-commerce Apps

2. Easy Integration

The ideal solution is to select a digital payment vendor that doesn’t botch up your app’s UX with a slow payment process. Select a digital payment vendor that makes it easy and beneficial for your customers to make payments on your app where they can select a payment method of their choice.

3. Customer Support

Several digital payment vendors limit their support to tickets, or emails. In this situation, users need to follow manual instructions to fix a problem. If you feel more comfortable talking to a person instead of sending emails, check whether the provider offers live technical support, at least within standard working hours, so that you can quickly resolve any technical problems.

The Security Aspect of The Digital Wallet

Think about the data breaches that have shocked the world in the last few years. Even the biggest names in business are not immune to cybersecurity issues, let alone new and emerging businesses like yours.

That is why it becomes important that your business is proactive about security rather than waiting for an incident to happen before taking some action. So, let’s take a look at some of the key security aspects while considering a digital wallet for your e-commerce app:

1. Should Use SSL for Secure Connections

The digital payment provider you choose should force HTTPS for all its services, so make sure that they have an SSL certificate in place. They should also regularly check the details of the certificate authorities they use to provide the strongest possible security.


2. Should Use Tokenization

Choosing a digital wallet with tokenization can minimize the risk of payment fraud. This means that you don’t have to store your customers’ financial data on your servers. When choosing the right payment solution, the cardholders’ data don’t even touch your servers. More importantly, they’re encrypted before they are ever stored on database servers. 

3. Should be PCI DSS Certified

When payments are processed on your platform, being PCI certified is a must. The Payment Card Industry Data Security Standards (PCI DSS) provide guidelines for merchants that tell them what they need to do to secure sensitive data in payment processing.

4. Should Use Proper Sandboxing

In cyber security, a sandbox is a security mechanism for separating running programs. It is often used to execute untested code, or untrusted programs from unverified third parties, suppliers, untrusted users and untrusted websites.

A sandbox typically provides a tightly controlled set of resources for guest programs to run in, such as scratch space on disk and memory. Network access, the ability to inspect the host system or read from input devices are usually disallowed or heavily restricted. If your payment partner relies on it, then you are good to go.


As the payment sector expands, choosing a vendor that is fit for your purpose and meets all your needs will only become more challenging. Businesses must assess each vendor’s key functionalities carefully before making a decision. Be sure to assess how much the digital payments service will cost, what sort of features it provides, and whether it delivers the kind of support and security that your customers can trust.

Published on Jan 12, 2021
Harshit Agarwal
Written by Harshit Agarwal
Harshit Agarwal is the co-founder and CEO of Appknox, a mobile security suite that helps enterprises automate mobile security. Over the last decade, Harshit has worked with 500+ businesses ranging from top financial institutions to Fortune 100 companies, helping them enhance their security measures.
Beyond the tech world, Harshit loves adventure. When he's not busy making sure the digital realm is safe, he's out trekking and exploring new destinations.


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