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Payments Regulation in Asia
Debit Card: Cards that facilitate purchases with funds directly debited from consumer accounts held at a financial institution. Debit cards are issued by financial institutions in affiliation with a global card brand network. Digital Wallets: Visa defines three types of digital wallets. 3 These are pass-through wallets 4 , stored value wallets, and staged digital wallets. Pass-through wallets are typically mobile phone-based solutions that allow customers to pay in-store or online, usually via a tokenized, digital version of their physical Visa product. Stored value digital wallets operate like prepaid cards, which the customer pre-loads with funds using a payment credential before being able to transact with sellers. Staged digital wallets can perform ‘real-time load’ transactions which allow the customer to make a transaction when there are not sufficient funds pre-loaded in the digital wallet account.
POS financing: Credit extended to consumers at the point of sale. This includes credit offered by retailers, financial institutions and third-party BNPL services such as Klarna, Afterpay and Affirm.
PostPay: Consumers order products online and pay for them in full later at an affiliated physical store or ATM.
Prepaid card: Cards issued by financial institutions that run scheme networks such as Visa and Mastercard and that are funded in advance. Prepaid cards can be funded once or reloaded, and they can be used to make purchases as easily as debit or credit cards. PrePay: Services that allow consumers to make e-commerce purchases without a card account and without providing personal data. Services such as Paysafecard and Neosurf offer flexible payments via vouchers redeemable at participating merchants.
Others: Emerging and otherwise uncategorized e-com payment methods, like mobile carrier billing and central bank digital currencies.
3 https://usa.visa.com/content/dam/VCOM/global/support-legal/documents/digital-wallet-guide-march-2023.pdf 4 https://usa.visa.com/content/dam/VCOM/global/support-legal/documents/digital-wallet-guide-march-2023.pdf
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