A look at the four primary options for developers to consider as they decide how to fund a mobile wallet. Each of these options has their distinct advantages and drawbacks, learn more from Cayan.

1. As an app developer, you may be tempted to create
your own. Before you get too excited at the prospect,
you should figure out how you'd fund your mobile wallet.
By taking care of this point first, you can avoid a lot of
frustration and wasted time later.
How to Fund a Mobile Wallet
Mobile wallet apps
are more popular
than ever.
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2. While each possess their own benefits, there are also drawbacks that you should
consider before selecting the best option for your new application.
2
Four ways to fund a mobile wallet
Virtual CurrencyPre-funding Credit ACH

3. A pre-funded mobile wallet
works like a gift card.
• Easy for developers
to implement
• Lower Security
Requirements
PROS CONS
• Requires customers to
continually add funds
or risk the application
not working
Funds are added, usually through a bank
account, and are then available to spend.
3
Option 1: Pre-Funding
+ –

4. Option 2: Direct Bank Transfer/
ACH Funding
• Ease of Use for
Consumers
• Difficult to design and
implement
• Lack of standardized system
• No authorization or dispute
resolution standards in place
The only way to make this happen is through
direct bank transfers, or ACH transfers.
4
A mobile wallet app is essentially
linked to a user's bank account.
PROS CONS+ –

5. Option 3: Credit Card Funding
• Ease of use for
consumers
• Fees
5
This is a fairly
straightforward option.
Users link their mobile wallets to their credit
cards. Transactions are run on the card through
the application.
PROS CONS+ –

6. Option 4: Virtual Currency Funding
• Early adopters tend
to gravitate towards
“cool”
• Lack of acceptance
• Variable rates of currencies and
exchanges
• Lack of trust from
consumers/merchants
6
Can you imagine?
A day when virtual currencies like Bitcoin are
accepted by most online retailers. Scoff all you
want, but it's technically possible.
PROS CONS+ –

7. Conclusion
Your focus should remain on ease of
use, not only for your development
team but even more importantly for the
consumers using the application and
the merchants that will ultimately
accept it.
It is important to base your final decision
on the preferences of your target audience,
but keep things like risk tolerance and the
relationships you have with financial institutions in
mind too.
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