Digital wallets and contactless payments are touted as the future of financial transactions. But that future has two very different paths when it comes to the U.S. and Europe. There’s a big difference between how the U.S. and European countries approach digital wallets, which is something that companies such as PSI Pay aim to resolve with their services. While the U.S. still has to adopt contactless payments on a larger scale by installing the required POS terminals across major retailers, European countries such as the Netherlands have already embraced the payment method. In Netherlands alone, contactless POS terminals have been adopted by around 80 percent of physical locations. But the differences between these two regions are not limited by the unavailability of the equipment.
How American Digital Wallets Work
According to geeksnews, American digital wallets allow users to store their credit card or debit card information within them. This information can then be used on online merchants to pay for transactions. But since American merchant locations don’t usually have pertinent POS terminals available at their retail locations, the transactions may not be conducted in in a physical manner. In addition to that, while the digital wallet provider such as Google Pay shields the financial information, it goes through the back-end processors of banks or other financial institutions.
How European Digital Wallets Work
European digital wallets act a bit differently. They do not only use credit and debit card information, but they can also act as custodians to liquid funds. This means that European wallets have the ability to not only act as contactless payment providers, but they do not have to rely on back-end payment processors. The funds available in these wallets can be used easily at both online and offline merchants easily. This is largely due to the POS equipment that is installed at these locations, which allows contactless payments to be possible just as easily at physical locations as they are in online settings.
How Payment Services Such as PSI Pay Aim to Change the Game
PSI Pay is a payment processor and digital wallet provider that is regulated by the U.K. Financial Conduct Authority. With its range of services that include but are not limited to prepaid credit cards, wearable devices, and online payment processing, the payment processor aims to demonstrate how different payment solutions can work under the same environment. By leading with example, PSI Pay aims to show the world how mobile and contactless payments have the potential to provide something new, but in a very safe and effective manner.
And through this demonstration, the company hopes that its services would not only appeal to people in the U.K. and Europe, but also to those who are in countries such as the U.S., so they could bring about demands to their financial institutions in order to make similar solutions available for them. The objective for PSI Pay is to make mobile and contactless payments truly the future of financial transactions. It just remains to be seen when would it be met by the rest of the world. To know more about SI Pay visit lb.lt