Paying with smartphones and electronic wallets at the supermarket, in restaurants or department stores is taken for granted. And now it's as easy in online shops as it is at the POS. Just click the Apple Pay or Google Pay logo at the checkout and confirm the purchase with a fingerprint or facial recognition, for example. As well as advanced security for the shopper, digital wallets also give merchants advantages. These include reduced abandonment rates, lower chargeback incidents and higher acceptance rates, underscoring the transformative benefits offered by these solutions.

In response, PCI Proxy has introduced its latest innovation – Wallet Tokenization. This solution addresses the rising popularity of digital wallets and the desire for a cardless buying experience – 50% of global shoppers believe it’s important to have payments by digital wallets available in-store, and 41% see it as important when shopping online. Plus, Wallet Tokenization allows merchants to use payment cards stored in digital wallets in any downstream payment process, regardless of the payment gateway they have integrated with.

How does vaulting with Apple Pay and Google Pay work?

When using digital wallets, your shoppers can purchase goods and services with a credit or debit card stored in the wallet on their device. Whether shoppers make purchases through a web browser or a native mobile application, the payment process is notably more streamlined and user-friendly. If shoppers are logged in to their digital wallet, they simply need to select their preferred payment method and then identify and authenticate the purchase through biometrics such as fingerprint or facial recognition.

As a certified Google Pay and Apple Pay payment provider, PCI Proxy can receive the decrypted wallet token directly. Within our PCI DSS secure environment, PCI Proxy decrypts the wallet-specific token into either a full PAN (FPAN) or a device PAN (DPAN). DPANs present distinct advantages over FPANs. Notably, transactions using a DPAN seamlessly integrate 3D-Secure, cutting the extra authentication step. Removing this additional step helps mitigate potential friction in the checkout process, reducing the likelihood of increased shopper abandonment rates.

Behind the scenes, PCI Proxy automatically converts the FPAN or DPAN to a universal PCI Proxy token which opens a realm of benefits for merchants. The concept offers a unique token format, which is payment provider agnostic, providing full flexibility to adapt to various payment providers. Plus, it minimizes PCI DSS scope, reducing the regulatory burden on businesses while simultaneously enhancing the security of customers' payment data.

What integration options are available?

For merchants, the most convenient option is to embed our hosted tokenization buttons directly at checkout – available for web and mobile. Purchase impulses are quickly and easily satisfied, and the implementation can be done in no time. With the hosted button integration, we manage the onboarding process with the wallet provider and offer a straightforward and hassle-free method to gather card details stored within a shopper’s wallet. Plus, we also offer a self-hosted option, for merchants with an existing corresponding integration to wallet providers. Merchants can then provide us with the wallet-specific token, which we decrypt and convert into a universal PCI Proxy token ready to be used in any downstream payment process.

Ready to get started?

Ready to unlock the value of wallet tokenization and delve into the technical bits? Take a look at our developer documentation or contact our team to discuss how wallet tokenization can benefit your business.

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