Digital or electronic wallets allow you to entrust your payment card or bank details to a trusted third party.
These days, most major e-commerce retailers allow customers to register their payment card details to make it easier to make payments, which amounts to creating a number of so-called merchant wallets (not linked to the card issuer). In addition, the digital giants have taken advantage of the growing use of smartphones to provide the same digital wallet model for so-called "proximity" payments, i.e. in physical shops on an electronic payment terminal. These apps allow customers to digitise their payment card so that it can be stored on a phone, thereby turning the smartphone into a payment card. The cards are "tokenised": the card number is turned into a token, with the list of payment card numbers and corresponding tokens held by a service provider. The token is stored in a secure environment on the smartphone, either physically (in a secure element) or in software (host card emulation). These security features make it more difficult to use the payment card without the user's knowledge. In addition to tokenisation, mobile digital wallets are based on the development of contactless technology for card payments and the equipping of smartphones with NFC (near field communication) technology.
Other mobile payment apps have been developed by new players or commercial banks. These apps generally provide a digital wallet and a person-to-person payment solution. The latter utilises users' telephone numbers to replace bank details for credit transfers (proxies). While several solutions of this type have met with moderate success in France (Paylib, Lydia, etc.), they have the potential to be very widely adopted by users. In Sweden, Swish is used by 70% of the country's citizens. In the Netherlands, the iDEAL solution is used by 10 million people. Blik (in Poland) and Bizum (in Spain) are also highly successful.