Last Updated: January 12, 2024
How Much Will It Cost You To Create An App Like Paytm
Published On: October 11, 2021

The mobile wallet application Paytm is an online payment system created in India. Owned and managed by ONE97 Communication, it’s an app perfectly worth recreating if you expect your app-based business venture to be profitable.

Paytm has quite a profound brand presence on the internet and on the smartphones of hundreds and thousands of people as a digital wallet. Created, owned, and managed by ONE97 Communication, a digital wallet organization based in Noida, India, Paytm has been expanding constantly. Currently, it’s standing on the frontlines in the battle to go cashless in India.

It facilitates open accounts and money-transferring features from one account to another. Folks all over the world, including India, are gradually leaning more and more towards cashless transactions. It has become more of a necessity, especially after the pandemic. Of course, the fame earned by this application couldn’t prevent competitors from stepping in.

If you think you have a fantastic business idea that needs an app like Paytm, you shouldn’t hesitate to work with a top-rated mobile app development company. Just because business giants like Amazon and Flipkart have locked horns with Paytm doesn’t mean you can slip in and join the fight.

How does it work?

Before you attempt to create a clone of Paytm, you should understand what you need to build. Naturally, you must take a closer look at Paytm, what it does, and how it does so. It’s a digital wallet, as you already know, that works bi-directionally.

It connects a user to a digital wallet on one side and a payment bank on the other. This feature facilitates payments without the need for liquid money. Users can also scan QR codes of products to purchase them if they don’t have an internet connection at that moment.

Users can also rely on its money-transfer systems to deposit money accumulated in the wallet to a bank account. To do that, one has to do the following.

  • Select the Passbook icon on the home screen of the application.
  • Choose the option “Send Cash to Bank.”
  • Tap the toggle button.
  • Enter the account number, name of the account holder, and the IFSC code of the bank.
  • Finally, tap on the “Send” button.

As you can see, by working with a top-rated mobile app development company, you’ll simplify the task of transferring money.

Depending on the condition of the network and bank servers, it may take a fraction of a second or several days for the transaction to conclude. If the transference procedure fails for any reason, the app will redeem the user’s money into the digital wallet.

Paytm wallet even allows users to make cashless payments without an active internet connection. If a user purchases something from a dealer who accepts cashless payments, the user can dispatch money digitally against a one-time password, QR code, or bar code.

As already mentioned above, a mobile wallet application like Paytm is a tool for making digital payments. When designed by a top-rated mobile app development company, it lets users move money from their account or credit card to a digital wallet for web-based transactions.

The success story

The reason Paytm became a smashing success is the level of confidence it managed to garner from its clients. During the earliest days, Paytm had a customer service department in place. This department had to handle customer complaints and answer questions constantly.

The success story

According to a spokesperson from the brand, Paytm had to spend almost 30% of its entire campaign budget just to build consumer interest. The path followed by this brand to reach the top is now the highway that any startup can rely on. Only a handful of people are aware of the fact that Paytm is one of the few businesses in the world that earned Series-A funds.

Hundreds of people, particularly consumers, doubted the business model followed by Paytm. This massive digital bank often offers ludicrously large sums of money. Unfortunately, it’s impossible to refund the same to the client’s financial account.

The demonetization event provided Paytm with a new game plan. It allowed the company to expand its foundation among technologically conscious yet less educated people, including street vendors and hawkers.

Mobile wallet statistics

For every kind of business out there, a mobile wallet app built by a top-rated mobile app development company can offer a straightforward alternative. With such an app, consumers can buy products online, which, in turn, will increase the sales of the seller.

With every passing day, the market of mobile wallet apps keeps on increasing. They’re particularly popular among Gen-Z and millennials. More and more people are using mobile wallets to make in-store payments, transfer money online, make POS transactions, etc.

Based on a report generated by a market research organization, the market size of mobile payment systems was around $1,043.1 billion back in 2019. The same report claims that this amount will hit $7,580.1 billion within the next six years as it has a CAGR value of 28.2%.

Here’s a pictorial representation of these statistics (Link).

Apple Pay turned the tables and surpassed Samsung Pay with only 34 million subscribers some time ago. The worst thing, however, is that Samsun Pay fell by 4% within two years of its launch. WeChat Pay, an offshoot of the chat application called WeChat from China, left all rivals behind in the race. It has over 600 million subscribers.

The types of transactions

You can hire dedicated mobile app developers to get your mobile wallet app created. First, however, you have to know about the types of online transactions available right now.

The types of transactions

1. Mobile wallet solutions

You already know what these are. These applications store payment-related and credit card info on your phone. They also act like digital wallets allowing you to make purchases directly over the internet.

2. Paying with sound waves

This one is a novel concept, indeed. Audio-based payment systems allow you to make contactless payments using sound waves. One example of this technology is Near near-field communication or NFC.

3. NFC

NFC or Near Field Communication is a form of wireless network technology. It utilizes high-frequency short-range systems. NFC also makes it possible to share data between devices.

4. Internet banking

This one has been around for a long time. Internet banking allows customers to make financial transactions over the web. With it, an individual can deposit money at a bank, transfer money to someone else’s account, and pay for products over the web.

The types of apps

Just as there are different methods of transactions, there are various types of e-walled applications. You should ascertain what you want to create before you hire dedicated mobile app developers.

1. Closed wallets

Close electronic wallets have been part of the e-commerce industry for a long time. These wallets are the best tools you can use to generate consumer satisfaction through credit money and compensated cash. Amazon Pay is an example of a closed e-wallet.

2. Semi-closed wallets

A semi-closed e-wallet application will allow users to purchase products from a specific list of traders. Now, despite offering minimal coverage, users can rely on these digital wallets for both offline and online transactions.

3. Open wallets

Only a bank or an associate of similar financial establishments can issue an open wallet. Other than withdrawing funds or transferring the same using bank cards, users with a vacant wallet can rely on these for every kind of transaction allowed in semi-closed wallets.

Also Read: How Much Will It Cost You To Create An App Like Dubizzle?

Industry types

Almost every kind of business or industry will benefit from an e-wallet app development. Nevertheless, it shares an intrinsic connection with the finance industry. As these apps store credit, debit, and gift cards, apart from digital currencies, they’re partly effective for numerous businesses. Local businesses can cater to international customers with such an application.

Industry types

1. Food and grocery delivery

You’re probably aware of how popular food and grocery delivery services are at the moment. It’s also noteworthy that most of these applications remain combined with online payment platforms. E-wallets are perfect for businesses with a stake in grocery or food delivery services.

2. Cab booking

Today, not many people pay cash after traveling from point A to point B in a taxi. Just as they use a mobile application to hire the cab, they pay for the service using an e-wallet application. For taxi booking companies, a mobile wallet can help preserve transparency between the business and its clients.

3. Paying bills online

Even a few years ago, folks used to pay bills physically by visiting the office of their electricity service providers. Today, they do it while lounging on their couches. E-wallets are the best for paying bills because they make everyone clear their dues promptly.

4. Ticket booking

E-wallets are the lifelines of online businesses allowing their clients to book flight or train tickets and even hotel rooms. Users can pay bus, train, and flight fares, as well as the charge of a room. Event ticket booking platforms also use e-wallets to make things easier for attendees.

5. E-commerce

Finally, mobile wallets are a must-have for all e-commerce businesses. While an e-commerce company can choose to accept “cash-on-delivery,” digital wallets make it easier for buyers who want to pay for a product the moment they purchase it. That’s why they hire dedicated mobile app developers to create an e-wallet for their platform.

Key features

Now, it’s time to take a look at the features you need to include in your application.

1. Panel for the users

  • Registration – Users need to start the registration process by entering their names, phone numbers, and email IDs. They’ll receive an authentication code once they provide the necessary information. A KYC process should also be there to ensure money transfer stability.
  • Linking with the bank account – After completing the registration process, the user has to link his/her current bank account with the application. All purchases and transfers will take place through this account.
  • Adding money – The next feature incorporates transferring money from the bank account to the e-wallet. You have to bolster this system by including a password or the PIN of an ATM card held by the user.
  • Transferring or receiving money – E-wallets can send or receive money by supply a receiver number or scanning a bar code or QR code. You may also consider incorporating beacons or NFCs.
  • A passbook – Bank account holders keep track of transactions using a passbook. An e-wallet needs something similar for users to stay abreast of every penny they spend, send, or receive.
  • Bank-to-bank transferring – There also has to be a bank-to-bank transferring facility to allow users with multiple bank accounts. Through this system, they can send money from one bank account to another.
  • Bill payments – E-wallets designed by an android app development company of today should come with a few extra features, such as making bill payments. You should consider allowing users to pay bills using your e-wallet solution.
  • Insurance payments – If you want your app to be as effective as Paytm, it should allow users to pay insurance premiums.
  • Reservations – Your app should allow users to book and reserve train and flight tickets and seats.
  • Shopping for essentials – Your e-wallet solution should let users purchase and pay for products they need every day, such as groceries.
  • Promotions – By offering special promotions or exclusive offers, you can outrun your business rivals.
  • Reviews and ratings – In the end, the user panel should allow users to rate and review the services you offer via your digital wallet application.

2. Panel for the admin

  • Dashboard – The admin needs a dashboard containing a “settings” page to manage user behavior and user details.
  • For security – An e-wallet app should, under all circumstances, preserve its assurance and integrity standards. That’s why you must ask your Android app development company to come up with a powerful security system to combine with the admin panel.
  • Analytics in real-time – This feature will allow the admin to run analytics in real-time for enhanced interaction and client conversion.
  • Adding users – The admin will be in charge of adding new users and even disapproving an application. The admin will need a system to authenticate each new user.

3. Extra features

  • Push notifications – An e-wallet application will be incomplete without push notifications.
  • Social sign-up or log-in – Users will appreciate your app if it allows them to sign up or log in using the credentials of their social media accounts. It prevents them from entering the same information every time they log in.
  • QR code reader – If you want your app to be able to scan QR codes, ask your Android app development company to include a QR code reader in the digital wallet.
  • Expense management system – While expense management depends entirely on a user, you can help your clients in this task by including an expense management system.
  • Loyalty programs – When it comes to achieving customer satisfaction, loyalty programs will come in handy.
  • CRM system – The presence of a Customer Relationship Management system will allow you to help users whenever they need it.
  • Integration with wearable gadgets – Wearable devices are creating quite a commotion among consumers, particularly the younger generations. If possible, consider integrating your app with these gadgets.
  • Virtual card – If you hope to boost cashless transactions, you’ll need a virtual card to provide exclusive and customized offers.
  • Integrating with e-commerce platforms – By integrating your mobile wallet app with popular e-commerce business organizations, you’ll earn more money and win the trust of more prospective users.

Cost of development

Usually, app developers in India charge anywhere between $10 and $80/ hour for developing a Paytm clone. Conversely, the price increases to $30 or $150/hour in Eastern Europe. In the USA, development costs will range between $50 and $250/hour.

Final words

Those who rely on the services of mobile app developers understand the importance of researching service providers before hiring one. Remember to do your due diligence before moving forward.


The market of e-wallets is currently raging. The following pictorial representation will tell you everything you need to know.

It’s possible to monetize an e-wallet by integrating it with e-commerce businesses, charging commissions against bill payments, and in-app advertisements.

Paytm is extremely popular in India, but in other parts of the world, Samsung Pay, PayPal, Google Pay, Apple Pay, Stripe, PaySimple, Stripe, Amazon Pay, Alipay, and WePay are some of the recognized and widely-used ones.

This one is an important question. For starters, your app has to comply with the regulatory measures enforced by the government. You also have to be extremely careful regarding user data. Finally, you must be vigilant to ensure fraudsters never penetrate the security of your application.

According to experts, the development cost of digital wallets for iOS devices can be somewhere between $25,000 and $55,000. It can increase to $100,000 or even $150,000 if you choose to create a highly advanced application.
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Jayanti Katariya

Jayanti Katariya is the CEO of Moon Technolabs, a fast-growing IT solutions provider, with 18+ years of experience in the industry. Passionate about developing creative apps from a young age, he pursued an engineering degree to further this interest. Under his leadership, Moon Technolabs has helped numerous brands establish their online presence and he has also launched an invoicing software that assists businesses to streamline their financial operations.

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