Cost of developing a digital wallet app like Wero in the UK
MAR 21, 2025
Have you ever wondered what it takes to develop a digital wallet app like Wero, the European game changer that has modernized, peer-to-peer payments? With the rise of convenience and security in digital transactions, apps like Wero are gaining popularity in countries like Germany, Belgium, and France. But what goes into creating an app like this?
Several factors influence the development cost of a digital wallet like Wero. So, if you're considering launching a digital wallet app similar to Wero, be ready for significant investments in development and compliance. The potential for growth in the European market is vast, but understanding the factors will help you manage the costs effectively.
What is Wero?
Wero uses SEPA (Single Euro Payments Area) rails to send money efficiently between linked bank accounts. It operates as a pass-through digital wallet, available in two forms: a layer that integrates with existing banking apps and a standalone mobile app for iOS and Android. What is Wero, you may ask?
Launched in July 2024, Wero is an instant digital wallet payment solution that can be used to transfer funds quickly with the help of a mobile app. Supported by 16 major European banks, Wero simplifies money transfers, integrates cryptocurrency support, and even offers QR code payments in one powerful digital wallet mobile application.
How does Wero work?
With Wero, the funds are transferred directly between the user's bank account and the recipient’s account immediately once the payment is approved. Users don’t hold a separate balance within the Wero app itself. Instead, payments are made using funds from their linked bank accounts.
To use Wero, you must hold a bank account with one of the EPI shareholder subsidiaries. The process is secure, with strong authentication tied to your mobile device, usually through your banking app, ensuring each payment is verified before processing. Although Wero’s integration with payment processors is still under development, this setup promises smooth, immediate payments once the service is fully launched.
What makes Wero better than other digital wallet apps?
Like Google Pay or Apple Pay, Wero also uses tokenization to enhance security, ensuring the business does not directly handle sensitive cardholder data. It offers lower friction for firms like yours due to the absence of card intermediaries, which could make it easier to meet lower Strong Customer Authentication (SCA) exemption thresholds.
While both Google Pay and Apple Pay use tokenized cards, Wero is an account-to-account (A2A) payment solution. While users of other payment systems may enjoy the perks of credit cards, such as loyalty points and credit options, Wero focuses on how account-to-account transfers could be better suited for highly trustworthy payees.
While services like Giropay and Przelewy24 have gained popularity in certain countries, they are often limited by national boundaries. Wero, however, is interoperable with many major European banks. It is an attractive option for someone who frequently engages in international transactions within Europe.
Core Features of a Digital Wallet App like Wero
Developing a digital wallet payment solution akin to Wero requires you to incorporate a comprehensive suite of features to ensure a seamless, secure, and user-friendly experience. Below is an in-depth exploration of both basic and advanced features essential for such an application:
Basic low-cost features
a) User Registration & Authentication: The user authentication feature allows you to create accounts and securely access wallets. The registration process supports multiple options, such as signing up via email, phone numbers, or social media accounts. Authentication methods include password protection and two-factor authentication (2FA) to enhance security.
b) Digital Wallet & Account Management: You can manage all your funds through this feature, which provides real-time access to account balances, allowing users to add, withdraw easily, and transfer funds. It also facilitates linking bank accounts and payment cards, ensuring a centralized and streamlined financial management experience.
c) Fund Transfers (P2P Payments): Users can send and receive money seamlessly. Integrating contact lists and QR code-based transactions simplifies the process, enabling users to make instant transfers. Transaction confirmations ensure transparency by providing receipts and notifications, making peer-to-peer transactions convenient and secure.
d) Card Linking & Bank Integration: This feature enables users to connect their credit and debit cards or directly link their bank accounts to their wallets to enhance financial flexibility. Synchronization with bank accounts allows real-time balances and transaction history updates, giving users a comprehensive view of their finances in one place.
e) QR Code Payments: QR Code Payments allow you to make transactions simply by scanning QR codes. This feature includes a built-in scanner for quick payments and the ability to generate QR codes to receive money. It benefits retail payments and peer-to-peer transactions, making payments more efficient and accessible.
f) Transaction History: To ensure users can track their financial activities, the transaction history maintains a detailed log of all transactions. This feature records essential details such as dates, amounts, and transaction types. The search and filter options help users quickly locate specific transactions, ensuring transparency and financial accountability.
Advanced high-cost features
a) Multi-currency Support: It allows users to transact in different currencies. The inclusion of real-time currency conversion ensures accurate exchange rates, while multi-currency account management enables users to hold and transact in multiple currencies. This is extremely useful for international transactions and travel.
b) AI-powered Expense Tracking: To help users manage their finances effectively, AI-powered expense tracking leverages artificial intelligence to monitor spending patterns and categorize expenditures. Automatic categorization sorts transactions into predefined groups, such as food and entertainment, while spending insights provide budgeting recommendations.
c) Cryptocurrency Support: Cryptocurrency support allows users to hold, trade, and transact with digital assets as cryptocurrencies gain popularity. The integration of cryptocurrency wallets supports significant currencies like Bitcoin and Ethereum, while trading features enable users to buy, sell, and exchange digital assets within the app.
d) Biometric Authentication: Biometric Authentication enables you to access your digital wallets using Face ID or Fingerprint recognition for enhanced security. By replacing traditional password-based authentication, biometric verification provides a faster, more secure, and user-friendly way to log in and authorize transactions.
e) NFC & Contactless Payments: These methods help you make tap-to-pay transactions using Near Field Communication (NFC). With NFC integration, the app can communicate with payment terminals, allowing you to make quick and contactless purchases. This feature aligns with the latest digital payment trends and improves transaction efficiency.
f) Rewards & Loyalty Programs: To boost customer engagement, rewards & loyalty programs offer incentives for frequent usage. A points-based system allows you to earn rewards, which can be redeemed for discounts, cashback, or exclusive offers. This feature encourages customer retention by providing benefits for using the digital wallet app.
g) Customer Support: AI chatbot for customer support provides you with instant assistance. It is available 24/7 to answer common inquiries, guide you through various app features, and escalate complex issues to human support agents when necessary. By improving response times and customer support efficiency, the AI chatbot enhances the overall user experience.
Cost of Developing a Digital Wallet App Like Wero
The cost varies depending on several factors when developing a digital wallet app like Wero. These factors include the platform you choose, the app's complexity, the location of your development team, the technology stack, and the payment gateways you decide to integrate. Let’s break down the costs based on different app complexity levels.
Basic-level digital wallet app
For a minimum viable product (MVP) app like Wero, you'll have essential features like user registration, wallet management, fundamental security, and transaction history.
The development time is divided into stages, including design (2-3 weeks), backend (8-10 weeks), frontend (8-10 weeks), testing (4-6 weeks), and deployment (1 week).
The total development process takes anywhere from 3 to 7 months. The cost for an MVP version would be between £39,000 and £60,000.
Mid-Level digital wallet app
A mid-level app like Wero offers more advanced features, including QR code payments, personalized push notifications, rewards programs, enhanced security, and a custom admin panel.
The time required for mid-level digital wallet app development in Europe is around 3-4 weeks for design, 12-14 weeks for frontend development, 6-8 weeks for third-party integration, and 6-8 weeks for testing.
Deployment and post-launch support take around 2-3 weeks, leading to a development timeline of 7 to 11 months. The cost for this app would range from £68,000 to £120,000.
High-end digital wallet app
The high-end app offers the most comprehensive version, including features like wearable integration, cryptocurrency support, AI-powered fraud detection, expense management, and multi-language/currency support.
The development process for such an app takes the longest, with 16-20 weeks for frontend and backend, 5-9 weeks for planning, 10-12 weeks for AI and blockchain integration, and 10-12 weeks for testing.
Deployment and maintenance will take another 4-6 weeks, making the development timeline 10 months to over a year. The cost for this advanced version can range from £130,000 to £300,000+.
Factors affecting digital wallet app development costs
Several significant factors come into play when considering the cost of developing a digital wallet app in the UK, each impacting the final price. Here's a breakdown of the key factors affecting digital wallet app development costs:
1) Platform Selection and Development
The choice of platform—whether iOS, Android, or both—may also impact the cost of developing a digital payment app like Wero. Developing a native digital wallet app for a single platform usually costs between £24,000 and £80,000. Due to better performance requirements, if you opt for a cross-platform approach to target iOS and Android users, the prices can range from £80,000 to £240,000 or more.
2) Development Team and Hiring Plan
The cost of hiring a digital wallet app development team varies based on whether you work with a local team, outsource globally, or use freelancers. Local app development teams in the UK are really expensive, and the hourly rates for key team members can range from £16 to £24 per hour. The cost might be lower if you opt for Outsourcing digital wallet app development services, but additional management and communication efforts are required.
3) UI/UX Design implementation
A digital payment wallet app like Wero requires an interactive user interface (UI) and user experience (UX) design so the end user can smoothly explore the app. A basic UI/UX design might cost you between £4,750 to £23,750. In contrast, more advanced and customized digital wallet app designs could push the price to £23,750 to £39,500+. The more intricate and user-tailored the design, the higher the investment required to ensure its success.
4) Security and authentication protocol
Digital wallet app developers must implement features like SSL encryption, biometric authentication, and advanced fraud detection software to ensure user safety and trust. These measures comply with European security standards and range from £4,000 to £6,400 for basic security features. More advanced security protocols, like multi-factor authentication and biometric systems, can raise costs from £12,000 to over £80,000.
5) Developing Backend and Infrastructure
The backend of a digital payment wallet application is essential for managing transactions and user data. The complexity of the backend increases with higher user volume, transaction frequency, and additional digital wallet app features like analytics. The backend also includes setting up secure servers, payment APIs, and database management systems, making it a critical element for digital wallet app development in Europe.
6) Regulatory Compliance and Standards
Your digital wallet app must implement robust consent management, secure APIs, and multi-factor authentication to comply with GDPR and PSD2 for data protection and payment security. The specialized expertise and time required to ensure the digital payment wallet application meets these legal standards are significant, directly influencing the development cost of digital wallet apps in the UK.
7) Third-Party Service Integrations
Third-party integration in digital wallet apps, like payment gateways (e.g., PayPal, Stripe), location-based services (e.g., GPS for payments), and real-time analytics, are vital for the app’s functionality. Depending on the complexity, the cost of integrating a single payment gateway might range from £1,600 to £8,000. In contrast, more complex integrations involving multiple APIs and advanced features could cost between £4,000 and £12,000 or more.
8) Advanced functionality and costs
Including advanced digital wallet app features, such as peer-to-peer payments, multi-currency wallets, and budgeting tools, increases the overall development cost of digital wallet apps in the UK. Basic features like account setup, secure logins, and balance tracking generally cost between £24,000 and £40,000. Advanced features like AI-based investment advice or real-time transaction analytics can elevate costs from £80,000 to £160,000 or more.
Hidden Costs Associated with Digital Wallet App Development
While the initial digital wallet app development costs may seem straightforward, various hidden expenses can quickly add up. From ensuring robust infrastructure and compliance with regulations to ongoing marketing efforts, understanding and accounting for these hidden costs is important for you.
1) Licensing Fees
When developing a digital payment app like Wero, adhering to financial regulations and obtaining necessary licenses is a significant part of the development process. These costs include consultations with legal experts, certification fees, and expenses related to data protection and compliance with financial standards. Neglecting these legal obligations can result in severe penalties or operational restrictions.
2) Hosting expenses
The backend services, databases, and servers that support the app's functionality come with ongoing costs. A high-performance hosting solution is essential to avoid downtime or security breaches. These services need to scale as traffic and user demands grow, so choosing a hosting solution to handle this growth is critical. Regularly reviewing hosting expenses will help optimize costs without sacrificing performance.
3) Maintenance costs
This overlooked aspect involves regular updates to fix bugs, introduce new features, and ensure compatibility with the latest operating system versions. For digital wallet apps like Wero, keeping up with AI-enhanced security protocols and smooth functionality is essential to retain user trust and engagement. To keep costs manageable, it’s wise to schedule frequent updates, monitor app performance proactively, and allocate resources for continuous security enhancements.
4) Marketing efforts
Consistent promotion and marketing are necessary to launch and maintain an app. Costs in this area include advertising on social media platforms, collaborating with influencers, running referral programs, and optimizing the app store presence. Developing a comprehensive marketing plan incorporating various strategies, such as App Store Optimization, will boost discoverability.
Strategies to Cut Digital Wallet App Development Costs
To efficiently manage and reduce the cost of digital wallet app development, you should focus on streamlining workflows, making the right choices at each step, and utilizing the right resources for your project. Following are some strategies to cut digital wallet app development costs:
1) Effective MVP development to cut costs
Starting with an MVP (Minimum Viable Product) is one of the best ways to optimize the development cost of a digital wallet like Wero. By focusing on the essential functionalities, such as secure payments and user authentication, you can avoid overinvesting in unnecessary features early on. An effective MVP strategy for your digital wallet app ensures you can quickly bring the product to market.
2) Focus on essential mandatory features
To keep the cost of digital wallet app development low, it's important to prioritize necessary features over unnecessary ones. Focusing on core elements like seamless transactions, secure encryption, and easy-to-use navigation ensures that the app effectively addresses user pain points. As you gather user feedback, you can gradually roll out advanced digital wallet app features based on demand.
3) Outsource to Cost-Effective Regions
Outsourcing digital wallet app development to cost-effective regions is a wise move to reduce costs without sacrificing quality. Such areas offer access to skilled professionals well-versed in the latest fintech trends and technologies at competitive rates. Partnering with experienced teams who provide outsourcing digital wallet app development services, you can accelerate your custom digital wallet app development speed and control the time-to-market.
4) Deliver faster with Cross-Platform Development
Using frameworks like Flutter or React Native, you can develop Android and iOS apps simultaneously, ensuring a consistent user experience across devices. It speeds up the custom digital wallet app development process and simplifies future updates and maintenance. With cross-platform frameworks, you also gain access to extensive community support, making the custom digital wallet app development process cost-efficient.
Build a Secure and Scalable Digital Wallet App like Wero
As you progress with your digital wallet app development journey, it’s important to remember that building the app is the first step. The real challenge lies in maintaining it, which can cost an additional 15 to 30% of your initial investment. Regular updates, bug fixes, and feature enhancements are critical for keeping your digital wallet app relevant and functional.
When choosing the right development partner, you must find a company like Webelight Solutions Pvt. Ltd. with experience in fintech app development and one that offers transparent, flexible pricing. Whether enhancing financial management, providing secure digital payments, or offering users intuitive experiences, we ensure your digital wallet app is crafted to perfection.
