Digital wallets are available to consumers free of charge, and they’re easy to obtain. For example, when a consumer purchases a merchant site that’s set up to handle server-side digital wallets, they type their name, payment and shipping information into the merchant’s form. At the end of the purchase, the consumer is asked to sign up for a wallet of their choice by entering a user name and password for future purchases. Users can also acquire wallets at a wallet vendor’s site.
Although a wallet is free for consumers, vendors charge merchants for wallets. Some wallet vendors arrange for merchants to pay them a percentage of every successful purchase directed through their wallets. In other cases, digital wallet vendors process the transactions between cardholders and participating merchants and charge merchants a flat fee.