What are digital wallets and digital wallet white label?
A digital wallet is an electronic service that allows you to pay for goods and services through mobile devices, such as cellphones and wearables. Payment details are stored in the wallet as a token. In addition to paying for items in a contactless, more secure manner, digital wallets also allow you to store sensitive information; items such as cards and gift cards can be securely stored in a digital wallet.
The difference between OEM wallet and white label wallet
- OEM wallet – OEM Original Equipment Manufacturer.
These wallets are the mobile payment applications developed and offered by the device manufacturer, such as Samsung Pay, Google Pay and Apple Pay. This allows users to add cards from multiple issuers to the wallet application. This app is not customizable.
- White Label Wallet – these solutions enable financial institutions and issuers to customize their own branded wallet with the “look and feel” that their customers are used to seeing. They have the same functionalities of OEM wallets such as payment capabilities and storage capacity. White label wallets tend to be device agnostic, viable for both Android and iOS devices. An additional benefit for the issuers and financial institution white label wallets are the ability to strengthen your relationship with clients and provide payments solutions to everyday problems.
Digital wallets can store credit and debit card information a allowing payments directly from the card. Other functionalities 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 security. All wallets have security features and technology that protect sensitive data and keep it safe.
How do digital wallets work?
Digital wallets can be downloaded through a digital wallet app provided by your bank, onto your smartphone. Once you have the app downloaded, you typically enter the credit or debit card info into the wallet. The wallet will automatically contact the issuing card network and get a token. The token will stand in place of your card number so that your data will be secure and the token will be saved on your device.
When paying at a store with your mobile device, digital wallets will use the NFC chip stored in it. By hovering over the POS terminal, the payment app is activated and payment can be made quickly, easily and without any contact. Other payment methods can include QR or bar codes to send payment information.
Benefits of using digital wallets
Digital wallet usage was increasing before the pandemic but now, usage has skyrocketed all over the globe due to the contactless convenience. If you need to make a purchase in a store, payment can be made without touching a credit card terminal.
credit card fraud is a lingering concern and data security is a major concern. Digital wallets have multiple layers of security to keep your data secure and protected, these include:
- Passcode to access the wallet;
- Encrypted transmission to transmit data from your phone to the server;
- Tokenization technology replaces your real credit/debit card number with a token stored on your phone. If a token is stolen, the credit card issuer simply reissues another token and disables the stolen token.
Contactless Convenience –
no touch payments are possible with a digital wallet as well as faster checkout, with just a few taps. A big, bulky wallet is no longer necessary to run to the store and receipts can be stored on the app to help you stay organized.
HST Pay – Complete payment platform
HST Pay is a comprehensive payment platform which offers a mobile wallet for brands and/or private label. It includes all application modules related to tokenization. We are a certified Visa Token Service Provider (TSP). The solution allows for easy management of: users, cards, tokens and reports for wallets and cards.
See the benefits of HST Pay:
- Options for regular and quick pay;
- Customizable to your own specifications/branding;
- Greater spending control;
- We provide infrastructure to digitize multiple 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 associated with a device, the cardholder must go through an identity verification process.
White Label Digital Wallet – The future of your financial institution payment
During the global pandemic, consumers tried new forms of payments for the first time with many of them embracing digital wallets. For many consumers, digital wallets have become a preferred method of payment and they will likely continue using them long after the pandemic has ended. 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** surveyed consumers across 41 countries and found that in 2020, due to the pandemic, the lockdown accelerated the shift to digital payments. Globally, the use of mobile wallets exceeded cash usage for in-store payments. In Latin America, mobile wallets accounted for 6% of payment methods. Forecasts for both in-store and eCommerce transactions indicate that digital wallets are likely to be the preferred method of payment.
Both the Blackhawk Network and Worldpay surveys seem to indicate that the pandemic has ushered in an age of cashless payments, the potential is great for retailers offering digital payment options as well as providers connected to the digital payment ecosystem. So, the future of payments is definitely Digital Wallets!