2 PAYMENT METHOD PROFILES: DIGITAL WALLETS
Characteristics
Credit/Debit Functionality Enrolled payment accounts may include stored value prepaid funds (e.g. unemployment or COVID government benefits or general prepaid cards), stored value benefits (e.g. Apple Cash), the linking of a bank account, or the enrollment of credit or debit cards. These payment accounts generally will have masked account numbers associated with the products, which may have physical or virtual account numbers, and sometimes both. In some wallets, such as Apple Pay, the payment account credentials or card primary account number (PAN) for enrolled credit cards have a wallet-specific device PAN (D-PAN) to coincide with an underlying physical PAN. For both Apple Card and Apple Cash, consumers are seemingly issued virtual PANs or card numbers associated with those credentials. BillPay/Recurring Payments Recurring payments are available on several digital wallets, including PayPal, Alipay and Blik. 307 308 309 Some digital wallets such as Cash App allow users to automatically add funds to their wallet balance on a recurring basis. 310 Settlement Time Funding and account settlement timelines are also important to monitor with digital wallets. Much like with cards, settlement timings have cost/float implications and settlement delays may pose a risk during high transaction volume periods and unless otherwise negotiated or pre- determined with the wallet provider, will likely be dependent on funding method types. Authorization Digital wallet authorization differs by provider. PayPal offers authorization flexibility for merchants, whereby partial or full authorization amounts can be captured, 115% of the originally authorized amount (not to exceed $75) can be authorized, and previous authorizations can be void. PayPal authorizations can place a hold on funds for up to 29 days. 311
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