COVID-19 Crisis Surging The Use Of Digital Wallets

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The use of mobile wallets has been increased by 45% whereas the percentage is 30% in the case of contactless payment as said by AIB, Allied Irish Banks. Moreover, there is a 31% rise in the use of digital wallets by customers who are over the age of 45.

The data has been taken from more than one million aggregated as well as anonymized debit card transactions. These transactions were done between 1st April and 12th April. Well, the limit was increased on 1st April. The data discloses that Irish consumers are spending 30% more using contactless transactions. They are also spending more using several digital wallets. The percentages for Google Pay and Apple Pay are 45% and 41% respectively.

The average amount spent using digital wallets is increased by 35% for Google Pay users. The increase was 24% for Apple Pay users. In addition to this, the average amount spent per transaction using mobile wallets by the people aged between 25 and 34 is increased a lot. For about 45% among Google Pay users and 41% among Apple Pay users.

People who are over the age of 45 are consuming 31% more using their mobile wallets.

Contactless payment using debit cards is considered as one of the most popular choices of payment. It is seen among all ages except people who are under the age of 25. Meanwhile, people belonging to the age group of 25-34 are spending 56% more using their digital wallets. On the other side, people aged between 35 and 44 are spending 60% more.

Fergal Coburn, chief digital and innovation officer of AIB said. “As seem from out insights, COVID-19 has rapidly changed the behavior of Irish consumers and how they spend their money.”

He further added, “The data shows a shift across all demographics towards spending more using contactless payments since the spending limit was increased to 50 euro at the start of April.”

Apple Pay and Google Pay have higher limits than contactless payments through credit or debit cards. It really has made an interesting change in the sphere of online transactions. Therefore, Fergal Coburn mentioned this in his words.

“What is even more interesting is the shift towards Apple Pay and Google Pay, which have a higher limit than contactless on cards, which point to consumers looking to further avoid unnecessary interactions with chip and pin terminals and pay for more of their goods and services using contactless.”

Credit Card Tokenization

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With the advancement of technology, we have got a new as well as advanced shape in the online payment terminals. Nowadays, there are different ways through which one can make payments online. We have now credit cards, debit cards, mobile payments, and many more. However, the term, ‘tokenization’ is something that is inextricably associated with mobile payment applications. These applications are Google Pay, Amazon Pay, Apple Pay, and many more. Basically, it adds an extra layer of security that keeps your personal data protected.

However, we have made a brief breakdown of credit card tokenization. So, don’t forget to go through the following points:
Definition of Tokenization

The tokenization method is mostly used by mobile payment systems. It basically generates a virtual account number which is shared with the merchants while making transaction. Thus, it keeps the information of your card linked to the mobile wallet safe and secure. This algorithmically generated digit is called token and it plays a very impactful role when it comes to the prevention of credit card fraud.

In the case of credit card tokenization, the Primary Account Number or PAN of the customer is replaced with a randomly-generated number which is called token. After that, the number is passed through different wireless networks in order to complete the online credit card payment through the wallet. In this process, the information of the actual bank is not exposed as it is kept in the highly-secured token vault.

Well, you can compare the credit card tokenization method with a nationwide shift to chip cards. The process has gained a huge success because of its capability to stop the bad guys from copying your bank details onto another card. However, chip cards offer protection against fraud when you pay at a physical store through several virtual terminals such as pay at the table or point of sale system. But, tokenization is designed in such a way so that it fights digital or online breaches.

Tokenization or Encryption
Before the appearance of tokenization, there was encryption. Well, encryption still exists but it has lost its efficiency or we can say black hat hackers have already known how to decode encrypted data.

People used to refer to encryption when it comes to protecting sensitive data. Encryption basically transforms a data into an unreadable form. A person without a proper decryption key will not be able to go through this. Encryption can be used in various ways ranging from cloaking sensitive information in P2P applications to transferring private information in a vulnerable environment.

But, after the coming of the tokenization method, payment experts start giving more preference to this over encryption. This is because tokenization is a more secure and cost-effective way to safeguard as well as protect sensitive information. Recently, it has gained a huge success in the payment processing industry.

Through this method, users can store the information on credit cards in mobile wallets. Moreover, it makes the transaction successful without exposing the information of the original card. It replaces the sensitive card information with a stand-in token and therefore, you don’t have to worry about your card details while making payment on e-commerce websites or making online payments in restaurants through mobile wallets.

On the other side, encryption encrypts the cardholder data, and then it is decrypted at the end destination. Some applications that use this method are Whatsapp, Apple’s iMessage, etc.

When Tokenization Method is Used

The tokenization method is used in several cases in the payments industry. But, here we will give you three examples.

First, this method is used when “card on file” is kept for subscription billing and recurring payments.
Secondly, “one-click” checkouts in e-commerce sites.
Thirdly, when you do bill payments using NFC mobile wallets such as Google pay, Apple Pay, and Samsung Pay.

Payment Tokenization- Explanation

  • Apple Pay Tokenization: After taking the picture of your credit card and loading it into your Apple device, the device sends the information to the card’s issuing network or bank. After that, the information is replaced with a token (randomly generated number). Finally, the token is sent back to the device and it is stored into the device. Well, this means that it is impossible to do any sort of fraudulent activity with the information stored in your device.
  • Android Pay Tokenization: It is almost similar to Apple Pay tokenization. After loading the card information to your wallet, a stand-in token is created by Google and it replaces the actual number. Therefore, it becomes impossible for someone to get your actual card information.

In a nutshell, we can say that tokenization is a complicated process and it is the future of security. Therefore, there is no harm to know the basics of credit card tokenization.

So, if you are a businessman and looking for virtual terminals for payments or credit card terminals that support credit card tokenization, you must get in touch with International Payment Solutions.

Embed Giving Away Their Mobile Wallet Free For One Year As A Relief Act Amid COVID-19

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Embed is considered as one of the leading companies that supply the revenue management system and point of sale system for the amusement industry. The company has recently announced that they are going to give away their mobile wallet. This is an award-winning innovation free for one year to their existing as well as new customers.

The wallet will be mostly used by the FEC operators otherwise known as Family Entertainment Centre. Well, it is a COVID-19 Relief Act from Embed and through this wallet, FEC operators will be capable of offering customers contactless payment and an unforgettable FEC experience.

Yesterday, Renee Welsh, Embed Chief Executive said, “it is unmistakable that people don’t want to touch cash, coins, papers or anything that transmits viruses. This acts as a forcing function for our industry to become tech-savvy overnight. Embed has the contactless solution. They have this solution for the mobile wallet as well as mobile portal that the industry needs to recover. So it feels right and good that we give it away for free.”

In addition to this, Embed announced that their COVID-19 Relief Act symbolizes the powerful demonstration of their commitment to the industry’s recovery and customers.

Embed Chief Executive also added, “we want to do our part to support our customers prepare for their reopening day. We thought long and hard about how we can do this, and we decided to give away our latest award-winning innovation, the Mobile Wallet, free for 11-year to everyone.”

According to Renee Welsh, the company is also in the process of including a capacity management system. This system will be included to their mobile portal. He said, “we are giving this to all our new and existing customers for free. We know how important it is to our customers to have contactless payments to safeguard their overall customer experience. We felt this would be the most powerful demonstration of our commitment to our customers and our industry’s recovery.”

The company has been working very closely with its partners as well as customers for gathering information. Their foremost objective is to make the situation better; they are making strategies for reopening days.

The most interesting fact is that Embed made such conversation available to the industry. This conversation was made available for the first time via their EmbedLIVE series. This is because Embed knew that such transparent and authentic would bring positive outcomes in the industry.