Welp MagazineA digital wallet is a digital service that allows you to purchase goods and services through mobile phones, such as mobile phones and wearables. Payment information is stored in the wallet as a token. In addition to paying for products in a contactless, more protected manner, digital wallets enable you to store sensitive information; products such as cards and gift cards could be securely kept in a digital wallet.
The contrast between OEM wallet and white label wallet
OEM wallet – OEM Original Equipment Manufacturer.
These wallets are the mobile phone payment apps developed and provided by device manufacturers, like Samsung Pay, Google Pay, and Apple Pay. This allows users to add bank cards from multiple issuers to the wallet application. This application is not customizable.
- White label wallet – these services enable banks and issuers to customize their own branded wallet with the “feel and look” that their clients are used to seeing. They have the same functionalities as OEM wallets like payment functionalities and storing capacity. White label digital wallets tend to be device agnostic, viable for both Android and iOS devices. A fringe benefit for the companies and financial institution white label wallets is the chance to strengthen your relationship with clients and provide payments solutions to everyday issues.
Functions
Digital wallets can keep credit and debit card data permitting payments directly from the card. Other functions that digital wallets offer are Peer-to-Peer (P2P) payments, online payments, hold funds, store ID cards, storage for transit tickets such as trains, buses, or boarding passes, and safety and security. All wallets have security functions and technology that protect delicate information and maintain it safe.
How do digital wallets work?
Digital wallets can be downloaded and installed via a digital wallet application offered by your bank, onto your mobile phone. You generally enter the credit or debit card information into the wallet once you have the app downloaded. The wallet will immediately contact the issuing card network and get a token. The token will stand in place of your card number so that your information will be protected and the token will be saved on your device.
When paying at a shop with your mobile device, digital wallets will use the NFC chip stored in it. By hovering over the POS terminal, the payment application is activated and payment can be made immediately, easily, and without any contact. Other payment methods can include QR or bar codes to send payment info.
Be sure to read the Wise review if you are considering a digital wallet.
Benefits of utilizing digital wallets
Digital wallet use was enhanced before the pandemic but now, use has skyrocketed around the globe due to the contactless convenience. If you need to purchase in a shop, payment may be made without dealing with a credit card terminal.
Payment Security
credit card fraud is a lingering concern and information security is a significant issue. Digital wallets have multiple layers of safety to keep your data protected and secure, these include:
- Passcode to access the wallet;
- Encrypted transmission to transmit data from your telephone to the server;
- Tokenization technology replaces your real credit/debit card number with a token stored on your phone. The credit card issuer simply reissues another token and disables the stolen token if a token is stolen.
Contactless Convenience
no touch payments are achievable with a digital wallet as well as faster checkout, with just a few taps. A big, bulky wallet is no longer needed to go to the shop and receipts may be stored on the application to help you stay organized.
HST Pay – Complete payment platform
HST Pay is a comprehensive payment system that offers a mobile wallet for brands and/or private labels. It consists of all application elements connected to tokenization. We are a licensed Visa Token Service Provider (TSP). The solution enables easy control of users, bank cards, tokens, and reports for wallets and cards.
Card Tokenization – recognize the main advantages.
See the advantages of HST Pay:
- Options for regular and fast pay;
- Customizable to your specifications/branding;
- Better spending management;
- We provide infrastructure to digitize various credit card companies and private label cards;
- Biometric Secure Access;
- Cost-effective White label option available;
- Supports a variety of ID&V methods *.
ID&V – * Identification and Verification. Before tokens are connected with a gadget, the cardholder must go through an identity confirmation process.
White Label Digital Wallet – The future of your bank’s payment
Throughout the worldwide pandemic, customers tried new forms of payments for the first time with many of them embracing digital wallets. For many customers, digital wallets have become a favored procedure of payment and they will likely continue utilizing them long after the pandemic has finished. According to the Global Digital Payments Insights by Blackhawk Network *, 59% of Mexicans and 62% of Brazilians surveyed, used a digital wallet in 2020.
The 2021 Global Payments Report by Worldpay ** reviewed consumers throughout 41 countries and discovered that in 2020, due to the pandemic, the lockdown sped up the switch to digital payments. Globally, using mobile wallets exceeded cash usage for in-store payments. In Latin America, mobile wallets represented 6% of payment solutions. Forecasts for both in-store and eCommerce operations indicate that digital wallets are likely to become the favored approach of payment.
Both the Blackhawk Network and Worldpay reviews seem to indicate that the pandemic has ushered in an age of cashless payments, the capacity is fantastic for retailers offering digital payment solutions and service providers linked to the digital payment ecosystem. So, the potential of payments is definitely Digital Wallets!
