Also referred to as an e-wallet, a digital wallet lets users make payment using an electronic device such as a mobile phone, desktop PC or notebook. Examples of digital wallets include Google Pay, Apple Pay and PayPal.
Also referred to as an e-wallet, a digital wallet lets users make payment using an electronic device such as a mobile phone, desktop PC or notebook. Examples of digital wallets include Google Pay, Apple Pay and PayPal. Digital wallets typically store credit card or bank account details, and can be loaded by transferring funds directly to the wallet. This owner can load the wallet using their bank account or credit cards, or by receiving payment from others. Digital wallets eliminate the need for physical cards or cash when completing a transaction. Depending on the wallet and device, transactions can be completed in a number of ways, including online checkout or via QR codes and near field communication (NFC).
Digital wallets will provide an API for integrating them in a webshop, and popular digital wallets are supported by off-the-shelf webshop integrations, such as Shopify or Gumroad. Given that different digital wallets are popular in different regions, it makes sense for global merchants to use a solution that supports different digital wallets, with payment options offered based on the location of the customer. For example, it can make sense to offer PayPal in Europe and WeChat Pay in China.
A solution such as IXOPAY supports a variety of payment methods and PSPs using a single API, and offer different payment methods based on geographic regions. A complete list of the adapters available for the IXOPAY platform can be found here.
The main purpose of a digital wallet is to store payment methods, such as credit card details. Wallets can also be loaded with funds that can be used instead of cash or cards. Apart from storing payment methods, some digital wallets can also store additional information such as gift cards, loyalty cards, coupons, drivers’ licenses etc.
There are a number of digital wallets in use around the world, with different digital wallets favored in different markets. For example, WeChat Pay and AliPay are popular in China, Venmo is popular in the US and PayPal is popular in both the US and Europe. Google Pay and Apple Pay are other examples of popular digital wallets.
A digital wallet provides a convenient way to store payment methods securely and can provide a means of contactless payment. Unlike a traditional credit card, a digital wallet provides an additional layer of security, provided the device holding the wallet is protected sufficiently. If the device is secured using biometrics (e.g. fingerprint), the digital wallet cannot be used by anyone other than the owner of the device, whereas a lost or stolen credit card can easily be used by anyone with access to it. Digital wallets can also simplify the payment process by eliminating the need to manually enter credit card details or verify the purchase on an additional website, e.g. the card scheme’s website or in a banking app.
IXOPAY supports various digital wallets either directly of via PSPs. These include Google Pay, Apple Pay, PayPal, Alipay and WeChat Pay, as well as Skrill and Neteller, which are popular in the igaming industry. We are constantly expanding the payment methods we support based on customer requests. If you are unable to find the digital wallet you are looking for in our list of adapters, you can request additional adapters by reaching out to your Customer Success Manager.