3 PAYMENT METHOD SCORECARD: DIGITAL WALLET (PASS-THROUGH)
Consumer/Bank Costs Rewards The rewards available depend on the card backing the pass-through digital wallet. Interest Payment on Debt The interest payment on debt is depending on the card backing the pass-through digital wallet. Surcharging Surcharging is not typically seen for pass-through digital wallet users.
Cost
Metrics
Weight Score
Average Fee Level
15% 4.0 10% 1.0
Competitive Leverage
Competition within Payment Method
15% 2.5
Fixed Cost Rewards
10% 2.0 15% 3.5 15% 2.5 20% 5.0
Interest Payment on Debt
Surcharging TOTAL SCORE
3.1
Merchant Costs Average Fee Level The average fee level is dependent on the underlying payment method. Competitive Leverage Given pass-through digital wallets are backed by cards, merchants feel pressure to offer this payment method to remain competitive. Competition within Payment Method Given pass-through digital wallets are backed by cards, the competition available is depending on the card type. However, even if backed by debit where co-badging is available, network tokens have added some complexity to routing. Fixed Costs In addition to the debit and credit card fixed costs, a merchant may need to install additional POS hardware and software programming to accept contactless payments in-store and/or additional development for digital wallet functionality on a website or app. 816 This also can vary depending on the size of the merchant and if the merchant is building custom API or relying on a plug-in from a gateway provider.
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