Wallet Service Provider -15 Things to Consider when Choosing a provider

December 15th, 2021 by Felix Cheruiyot

Wallet as a Service Fund

A wallet service provider is a company that provides a digital or virtual wallet for holding, receiving, and transferring virtual money or cryptocurrency. When you think of a virtual wallet, think of it as a real-life wallet that holds and receives real-life money. But the virtual wallet receives digital or virtual money instead of real-life money. 

Speaking of real-life wallets, you do not buy any random wallet, do you? You buy something solid and secure that can hold your money, ATM cards, ID cards, and other valuables safe and secure. The same also applies to digital wallets. 

Virtual wallets have several advantages over regular, real-life wallets. Building a wallet of your own takes time, and it is difficult to scale up even after building it. When you opt for a wallet from a wallet service provider, you get a secure, scalable tool that you can easily build on and implement.     

There are various e-wallet service providers, so you need to take your time when selecting one. This article will tell you all you need to know about wallet service providers and selecting the right one. The advantages and use case scenarios of e-wallets will also be highlighted.  

What can virtual wallet services be used for?

Payment solution for mobile apps, websites, and software 

Virtual wallets from a wallet as a service provider can be used to pay and receive money through any software, mobile app, or website that you build. Developers can implement the virtual wallet to their app, website, or software via a simple API that is easy to integrate. You can also use an SDK for the integration.    

Fast, convenient online payment for businesses 

Businesses in the telecommunication, banking, transportation, and commerce sectors use virtual wallets to receive money from customers and facilitate transactions. These wallets facilitate mobile banking, airtime top-up, micro-lending, insurance, savings, remittances, bill payments, and other use cases. Transactions facilitated by these wallets are fast and secure. USSD banking initiated through virtual wallets help companies to reach the masses that don’t have access to regular financial services.    

B2B payments

E-wallets can be used for fast business-to-business payments. No more delays caused by checks or the need for physical meetings. Virtual wallets help businesses conduct transactions fast and securely. Businesses can pay suppliers and other companies conveniently locally and internationally without restrictions or FOREX boundaries.       

P2P payments

A wallet service provider provides wallets that can be used for peer-to-peer payments between one person and another. These transactions can be completed within seconds, with no hitch and with minimal transaction fees.    

Crowdfunding 

Virtual wallets provided by an e-wallet service provider can be used for crowdfunding on various projects. The wallets can allow anyone to donate using any funding source of their choice. If possible, there can be a transparent ledger with a single wallet, through which everyone can see how much has been collected and what remains to be collected (if there is a maximum target amount). Open ledger wallets can also show how the money is being disbursed. Single wallets also allow for quick report generation, transparent accounting, and fast reconciliation.     

E-commerce 

E-commerce vendors can use virtual wallets to receive payments from customers. The prompt notification they get after payment has been made will help them start processing orders for shipping immediately and satisfy customers better. Virtual wallets also help resolve payment chargebacks, credit card frauds, and others.     

Wallet payment solution for e-sports and gaming/betting platforms 

Gaming, betting, and e-sports platforms are charged with doing more than providing a platform for their users and subscribers to play games, bet on sporting activities and entertain users. They need to provide a reliable payment solution that allows users to deposit money whenever they want and process it within seconds.    

E-wallet Kenya solves payment issues for all betting and gaming platforms. These wallets can accept payment from customers regardless of how they choose to pay and whenever they choose to pay. So, a customer can choose to pay via mobile money solutions like M-Pesa, debit cards, debit cards, credit cards, cryptocurrency, bank transfers, etc. 

Players enjoy gaming platforms using virtual wallets because payments fees are minimal, multiple currencies are allowed, and they can feel assured of the security that wallet as a service solution provides. Online gaming and betting platforms can set up these wallets quickly and use them for their web and mobile platforms. The multiple-currency solution also allows gaming platforms to reach as many customers as possible in diverse countries worldwide.    

What are the things to consider before choosing a wallet service provider?

You need to take your time before choosing a wallet service provider. These are the most important things to consider before selecting a wallet provider.   

1. Ease of usage and customization 

A good wallet service provider should be easy to use as designed or through plug-in APIs. It should also be easy to customize for your unique needs. 

2. Scalability 

The wallet provided should be easily scalable to accept more transactions than used previously. When the wallet as a service provider deploys the right system architecture, companies can quickly adapt and scale the mobile wallet technology to accommodate increased usage and growing users without changing the wallet’s architecture. It doesn’t matter whether you are dealing with a few customers or millions of them. The technology should be able to handle them all without glitches.  Easy scalability means that there is no need for a customer to hire a large team of developers to implement or make changes.     

3. Technical support 

The wallet provider should offer technical support as needed so there won’t be issues. An e-wallet service provider might charge a monthly fee for technical support and hosting, while some offer this for free. The most important thing is reliable technical support whenever you need it.   

4. Easy integration 

Wallets from an e-wallet Kenya provider should be easily integrated with all kinds of client systems. The wallet service provider should also be readily available to test integrations and train customers to use the wallet fully for their needs.  

5. Fast payment and processing of funds 

Wallets should process funds fast. Fast processing of funds allows for more transactions per second, and ultimately more revenue. Good virtual wallets should be able to process thousands of transactions per second if necessary.

6. Mobile compatibility 

Wallets should be so configured that customers can make transactions easily via their mobile devices. There shouldn’t be a significant difference in ease of usage between the web and mobile versions.  

7. Security 

A wallet as a service provider should guarantee the security of your wallets and money. Their wallets should be PCI-DSS compliance and PSD2 security protocols that guarantee your funds’ safety. PCI-DSS compliance stands for the Payment Card Security Data Security Standard. It is a security standard for companies that accept debit and credit cards. PSD2 security protocol grants access to only users granted access under strict security rules. 

Furthermore, there should be password protection, pin protection, and biometrics. There should also be other security features like a transaction threshold, monetary limits per period, etc. Your wallet service provider should offer 24/7 monitoring for all wallets under their care.   

8. Multiple funding methods

The best wallet providers allow you to fund your wallets through multiple funding options, including mobile money, cryptocurrency, bank transfer, debit cards, etc.  

9. Multi-currency support 

A good e-wallet service provider should offer multi-currency support that allows its users to facilitate local and international transactions. It also allows users to easily venture into international markets and onboard new customers without rebuilding their platform from scratch. You can gain more customers without investing in costly physical infrastructure.   

With multi-currency support, a single platform can be used to manage everything related to your wallet. There is no need to open various wallets across multiple providers, thus giving users difficulty managing the platforms. A virtual wallet reduces customer acquisition, transaction, and management costs. It also removes the financial payment barriers hindering businesses from expanding fast.        

10. Customer support 

A good e-wallet service provider should offer good 24/7 customer support with readily available customer representatives. The customer representatives should also be knowledgeable enough to attend to your needs and find a solution to any problem or inquiry you have. 

11. Minimal charges 

The charges incurred for depositing, transferring, withdrawing, and using the wallet in any form should be minimal. Some e-wallet providers have too many exorbitant charges that discourage customers from using them.   

12. Developers Sandbox testing 

The best e-wallet provider should have sandbox environmentfor testing the wallet functions and compatibility with apps, software, and websites before going live. This function allows users to test the wallet thoroughly and ensure that it is fit for usage. This is done to detect and prevent any issues that might arise during total usage.     

13. Charges tracking and reconciliation 

A good e-wallet service provider should provide wallets that allow for charge tracking and reconciliation solutions. Transactions can be compared across various platforms to ensure accounts accuracy. Records can be easily highlighted, and issues can be detected fast. Records can also be classified easily. This saves companies a lot of time, as opposed to what had been used traditionally.    

Payment reconciliation and charges tracking can also be automated to save time and effort. This gives customers more time to spend on what matters.  

14. Customization

Some wallets can be customized to suit your unique taste and add features that you need. Some customers require wallets with special needs, and wallet providers should accommodate these needs. 

15. Intra-wallet transfer 

The intra-wallet transfer allows users to send money from one wallet to another wallet on the platform. This service lets businesses transfer funds within the organization and centralizes all payments within one platform. A good wallet as a service provider should allow intra-wallet transfers to occur. And best of all, some wallet providers make their intra-wallet transfer free for everyone, no matter how many transactions occur.    

16. Bonus - Separation of user funds 

As a business owner, you need a wallet service provider that allows you to have separate funds for each user. This allows for easy management of user balance, easy reconciliation of funds, etc. 

How much does it cost to use a wallet service provider?

Wallet service providers use various pricing models for their services. Some wallet service providers like IntaSend are free to use when receiving and sending money. You only pay for internal transfers.  

What do you need to start using a wallet service?

The first thing you need to do to start using a wallet service is to contact the wallet service provider. Following that, the e-wallet Kenya service provider will get back to you and request a KYC (Know Your Customer) session. Here the wallet service provider will request details about your organization, what you do and why you need a virtual wallet service. 

You will also be asked to provide information on the number of customers you have and the expected volume of transactions that will be made through your wallet. They aren’t trying to be nosy at all. They need the information to serve you better and comply with government/corporate financial compliance protocols. You will also be asked to choose between a developer, individual or corporate account.     

Once the KYC session is done, you will be issued the virtual wallets that you desire as well as the necessary API keys. Now you can start using the virtual wallet. You can also use SDK tools like PHP SDK and Python SDK to integrate the payment solution for your platform. If you are using a popular e-commerce or website framework like WooCommerce, WordPress, or Flutter, you get framework-based tools for easy integration. API keys and SDK tools are fast and seamless to implement and integrate, unlike building your own system from scratch. Building from scratch won’t give you access to several features that an e-wallet Kenya will give you.     

There might also be a brief onboarding session or process where the whole thing is set up, and you learn how to use it properly. You could also ask for a sandbox to test the full implementation before deciding to go live.   


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