CMSPI STATE OF THE INDUSTRY REPORT
Overall Scorecard DEBIT CARD
Transactions in staged digital wallets take place in two stages: the funding stage and the payment stage. In the funding stage, the wallet provider obtains funds from the consumer, typically via a payment card or bank account. Examples: Cash App and PayPal. These are often accessed via in-app transactions, Pay Buttons, via a QR scan, or via an embedded credential on file. 250 251 A staged or stored-value digital wallet stores the funds and becomes the payment instrument itself. Examples: include Alipay and WeChat Pay in China, and M-PESA in Africa. They may be accessed via QR code, in-app transaction or Pay buttons. 252 253 DIGITAL WALLET (STAGED/ STORED-VALUE)
17.4 18.3 17.1 17.1 17.0 13.9 16.1 16.3
DIGITAL WALLET (PASS THROUGH) DIGITAL WALLET (STAGED/STORED)
CREDIT CARD
CASH
REAL-TIME PAYMENTS
BANK TRANSFER
BUY NOW, PAY LATER
STABLECOIN
12.0
Scorecard Summary The usage of staged and stored-value digital wallets varies globally. Most of these digital wallet options provide a good user experience including fast refund posting times and flexibility surrounding the authorization amount. Lower costs for merchants to accept and a lack of debt accrual for consumers gives staged and stored-value digital wallets a cost advantage over other payment methods. In terms of acceptance, regions such as APAC, staged and stored-value digital wallets have become a prominent way of paying, while other regions like North America are still more reliant on card payments. Its range of development across regions means security and governance of these types of digital wallets vary.
95
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