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September 5, 2023

Emoney App Development: Potential & Key Considerations

September 5, 2023
Read 8 min

Technology innovations contribute to a steady shift away from cash. According to some estimates, today over two billion people across the world utilize digital payment options yearly, including emoney transactions. The growing interest in electronic money can be attributed to various factors:

  1. Convenience: emoney can be transferred almost instantly, making it a convenient and fast (digital transactions are completed in seconds) way to pay.
  2. Cost-efficiency: emoney is usually cheaper than traditional payment methods because it does not require physical banking infrastructure.
  3. Financial inclusion: emoney enables simple access to financial services for unbanked segments of the population.
  4. Globalization and cross-border transactions: emoney simplifies cross-border transactions, allowing people to send and receive money internationally without the delays and complexities of traditional methods like wire transfers.

Although there are significant benefits associated with emoney, it also has its drawbacks. Let’s take a closer look at them.

  1. Limited usability: emoney is not accepted everywhere, which may create difficulties in using it in certain situations or places.
  2. Security concerns: even with strong security measures, eMoney transactions can still be hacked or attacked by cyber threats.
  3. Technology dependence: emoney relies entirely on technology, which means that users may not be able to access their funds during outages or other disruptions.
  4. Risk of fraud: emoney transactions are hard to undo, which is why they are a target for fraudsters.
  5. Limited regulation: emoney is a relatively new concept, so there are few rules to protect users and make sure providers behave ethically.

Technology advancements and more accurate regulations can help address a large part of the challenges, it’s just a matter of time. Meanwhile, with the growing demand for emoney solutions, financial service providers are eager to take advantage of this opportunity. If you’re considering building your own emoney app, read on. In this article, we’ll provide you with an overview of the emoney app market and explore the potential of building your own solution. We also highlight the key considerations to keep in mind when planning emoney app development.

emoney software

What is emoney app?

In a nutshell, emoney apps allow users to make electronic transactions and payments using their mobile devices, such as smartphones or tablets. It is common to hear people use the terms “emoney app” and “e-wallet” interchangeably, but they actually have some differences. Let’s understand what distinguishes these two apps:

  • An emoney mobile app enables electronic transactions and payments via mobile devices or computers for P2P transfers, bill payments, and online shopping. These apps often offer extra features like payment reminders, transaction history tracking, and integration with other services. Popular examples of emoney software include PayPal, Venmo, and Cash Appю.
  • E-wallets are digital payment apps that store and manage digital value. They hold funds that can be used for transactions and are often used to store digital currencies (including emoney). E-wallets may also have features like loyalty card storage, ticket storage, and contactless payment integration. Examples of e-wallets are Apple Pay, Google Pay, and Samsung Pay.

Both emoney apps and e-wallets allow for digital transactions and payments. However, emoney mobile apps offer a wider range of payment-related features, while e-wallets mainly focus on storing and managing digital funds.

Emoney vs. cryptocurrency

Do not also confuse emoney with cryptocurrency. The latter is a type of digital or virtual currency that uses security measures called cryptography and operates independently of a central bank. Emoney, in turn, is electronic money that is issued and regulated by a central authority, such as a government or financial institution. Emoney and cryptocurrencies both refer to digital currencies, but they have distinct characteristics. Here’s a breakdown of the main differences:

Centralization & decentralization• controlled by a centralized entity• decentralized, not controlled by a single entity or government
Issuance• issued by a regulated financial institution or government• created through mining or other consensus mechanisms
Backing• backed by fiat currency stored in a bank account• not backed by physical assets
Volatility• stable in value because it is tied to a traditional currency• known for price volatility
Regulation• heavily regulated with strict oversight in most jurisdictions• operates in a less regulated environment, although the level of regulation varies
Use cases• primarily used for online and electronic transactions• broader range of use cases, including P2P payments, online transactions, and investments
Table: emoney vs. crypto

To sum it up, emoney is centralized and backed by traditional currency reserves. It’s the subject of regulation and primarily used for digital transactions. In contrast, cryptocurrencies are decentralized, not backed by physical assets, less regulated, and have a wider range of use.

How do emoney apps work?

Now that you understand the details, let’s find out how emoney apps generally work:

  1. Account creation and setup. Users download and install the app and create accounts by providing personal information, linking bank accounts or cards, and verifying their identities.
  2. Funding the app. Users can add money to their apps by linking their bank accounts or credit/debit cards, or by transferring funds from another user of the same app. The app securely stores the user’s payment information and encrypts it to ensure the safety of financial data.
  3. Making transactions. To send money through an app, users choose the recipient – typically another app user – and enter the amount. Some apps let users scan a QR code from the recipient to begin the payment process.
  4. Transaction processing. The app verifies payments with backend servers and securely sends encrypted payment details to the processor to ensure sufficient funds.
  5. Payment processor. The payment processor confirms payment information, checks for fraud, and verifies funds. Upon verification it sends a notification confirming the successful transaction to both the sender and recipient, acting as a mediator between them (usually in-app and/or via email/SMS). The transaction is displayed in the transaction history.

It’s possible to enable cross-border transactions in your emoney custom app, allowing users to send money internationally.

Any questions? Drop us a line.


Emoney software market overview

In the European Union, an increasing number of people are choosing emoney as their preferred payment method. According to Statista, the number of emoney transactions amounted to approximately 4.6 billion in 2019. By 2021, this number had risen to around 7.5 billion transactions.

In its report on electronic payments, the World Bank Group counted that global ownership of digital payments (which includes emoney transfers) has increased by 50% from 51% of adults in 2011 to 76% in 2021. However, the same source claims that approximately 1.4 billion adults worldwide remain unbanked.

Considering the statistics and the growing interest in digital payments, the segment of emoney payments is a promising market.

Emoney app potential

Traditional financial institutions, fintechs, entertainment companies, telecommunications providers, and other organizations can capitalize on numerous opportunities for accessing untapped markets with emoney software.

Cashless payment services are the lifeblood of e-commerce and online banking success. Although multinational payment giants dominate the market, innovative emoney products can still emerge. Two areas with potential growth are emoney solutions for developing countries, where affordable financial services are in high demand, and for the rapidly growing IoT market.

Emoney can also bring significant value to the retail industry. It is growing steadily worldwide, but with greater demand comes greater competition. By supporting emoney, retailers can give customers more payment options and attract a larger, more loyal customer base.

Emoney custom app development: key considerations

Along with opportunities, building a custom emoney solution from scratch can bring several challenges. These are important factors to consider in order to reduce risks and make the launch easier:

Careful planning

Building a successful emoney app from scratch requires a competent team of coders, the right technology infrastructure, and resources. However, more importantly, it requires a detailed, carefully outlined, and well-worked-out plan. An experienced and reliable finance software development company can assist with both planning and implementation.


When starting an emoney business, it’s important to consider regulations and compliance with local and international laws. To operate on a global scale, companies must manage limits, fees, and regulatory processes across multiple jurisdictions. This requires staying up-to-date with regulation changes and complying with all relevant laws in each market. Strategies such as hiring local legal experts and collaborating with other financial institutions can help reduce compliance burdens, positioning emoney businesses for long-term success and growth in the global marketplace.

Security & KYC

Trust is crucial for the success of financial institutions. Clients expect secure data processing and storage, and financial companies need to implement Anti-Money Laundering (AML) and Know Your Customer (KYC) solutions to determine which clients to trust. Make sure to integrate an efficient AML & KYC service provider and keep your customers’ data safe with industry-leading security solutions.


Emoney provides convenient and cost-efficient payment options that drive financial inclusion. Along with technological innovation, these factors increase demand for more emoney payment solutions. Billions of emoney transactions are made yearly – and the numbers continue to grow.

Electronic payment is a promising market for multiple players, including fintechs, traditional financial institutions, and non-financial organizations. However, building a successful emoney custom app requires a significant investment of resources. More importantly, it requires finding a reliable and experienced tech partner.

At Itexus, we have been helping clients from the financial services industry worldwide turn their boldest ideas into high-quality software solutions. Our team of talented professionals is proficient in various technologies and well-versed in the ins and outs of the fintech domain. We would be happy to contribute our expertise and skills to your project. Contact us to discuss the details and find out how we can assist you.

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