Updated: WE use most secure approach for this module. If somebody will ever get your password (which we really doubt), he wont pass the next step of profile installation anyway. But we have even one more layer - it is your 4 digit protection code.
My concern was not someone logging into this app but saving innocent users. As you probably know MANY users have the same password for a lot of services. Now I don't want to say that this is good, but fact is that there are users out there who do it (many of them) - If you hash the password on the client with a salt before sending it anywhere you can make sure that just in case someone gets the hash they won't be able to do anything with it. Plus you cannot be accused of phishing passwords. Plus you are building more trust...
Device-Specific Profile:
What happens if I loose my device, it breaks or gets stolen? How will I be able to access the wallet?
And a question on the pricing: Will this service every cost anything? If so - what price-tag/subscription-model are you aiming for?