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Insights and Expertise

Digital wallets are no

longer experimental;

they are foundational.

Across these models, funding sources now extend
beyond credit and debit to include ACH, BNPL and
stored value, expanding choice while increasing com-
plexity for merchants and processors.
Trust, but verify

Despite advances in in-app security, tap-to-pay re-
mains essential for card-present wallet transactions.
As adoption increases, so does the importance of de-
vice integrity and proper EMV certification.

While not getting too far into the weeds, what occurs
when an NFC device, which is continually monitoring
for an electromagnetic field, comes within parameters
of a chip card or digital wallet, is a mating ritual of
sorts.
The device and the wallet need to first establish they
are compatible, complete a handshake then the card
reader reads the related data, performs the verifica-
tions and risk checks before sending the authorization
request to be interrogated.

In a compromised device, the authorization request
may be inappropriately routed to an offline authoriza-
tion request with an erroneous approval.

The takeaway is straightforward: all card-reading de-
vices and payment flows must be fully vetted, certified
and compliant with EMV specifications. Convenience
should never come at the expense of control.

Bottom line
Mobile wallets are not just a new way to pay. They are
a structural shift in how trust, identity and authoriza-
tion are delivered at scale. The use case must be consid-
ered with every payment offering.

As founder of Humboldt Merchant Services, co-founder of Eureka
Payments, and a former executive for such payments innovators
as WePay, a division of JPMorgan Chase, Ken Musante has experi-
ence in all aspects of successful ISO building. He currently provides
consulting services and expert witness testimony as founder of Napa
Payments and Consulting, www.napapaymentsandconsulting.
com. Contact him at kenm@napapaymentsandconsulting.com,
707-601-7656 or www.linkedin.com/in/ken-musante-us.

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