Paysafe's digital wallet service is intended for merchants who need to integrate e-money financial services into their businesses, such as marketplaces, e-commerce, electronic goods, and more.
By leveraging Paysafe's capabilities - ledger, multiple currencies within the same wallet, multiple region coverage, risk, and AML monitoring, and a multitude of payment options, a product can be easily enhanced with an out-of-the-box, compliant e-money wallet.
The service can easily and securely process payments and wallet requests from your customers using one single API – The Payments and Wallets API.
Paysafe's all-in-one Business Portal allows the merchant to access transaction analytics and manage the merchant account.
Digital Wallet as a Service
Paysafe Digital Wallet as a Service allows merchants to provide e-money based financial services (deposits, withdraws, transactions) to end users.
Operating e-money solution imposes certain responsibilities split between merchants and Paysafe:
Manage customer profiles
Take the customer through KYC (Know Your Customer), and share the information with Paysafe for regulatory purposes
Implement UI for all customer journeys
Integrate into Paysafe's Payments and Digital Wallets API
Paysafe Digital Wallet responsibilities:
Maintain e-money ledger
Maintain customer details for regulatory purposes
Monitor for Risk and AML
Integrate additional payment methods
Provide reporting capabilities
Concepts in Paysafe's digital wallet
Here are the core terms of Paysafe Digital Wallets
A Wallet encapsulates all data and services provided to a single entity
A Wallet account is a ledger for a single currency. Each wallet account belongs to a single wallet - merchant, customer, or legal entity. One wallet might have multiple accounts.
Customer is a physical person, associated with a wallet, and is the legal owner of the e-money stored in the accounts' ledger.
Legal entity is a customer who is not a physical person, but a legal entity. Legal entities have extended compliance requirements and onboarding processes.
Merchant is a legal entity that provides services or goods to its customers and manages the Wallet as a Service solution. The merchant also has a wallet associated with it within the Paysafe Digital Wallet platform, and just like customers, KYB information must be collected and assessed.
Transaction is a movement of money between any two accounts
Regulations require Paysafe to collect and assess KYC information, PEP checks, and in some instances - carry out EDD verifications on the customer and legal entities.
Each customer is assigned a customer wallet, and it accounts for all transactions for that customer - deposits, withdrawals, pay-in m pay-out, exchange, etc. As mentioned above, a wallet can contain multiple accounts in different currencies.
When the Merchant deems it necessary, a new Customer wallet is created. Usually, a customer wallet is registered, when the customer registers in the Merchant's system and passes the KYC verifications, as agreed between the Merchant and Paysafe.
As the Merchant is managing all its users, Paysafe only holds the customer personal details necessary for risk and compliance purposes - Paysafe does not access or manage customer credentials, nor does it manage authentication and authorization. These details are associated with every wallet.
The Merchant wallet, just like the Customer Wallet, provides ledger, transactional and multi-currency capabilities.
The Merchant can access the Merchant Wallet via the Paysafe Merchant Portal. Access to this portal is provided during the merchant onboarding process.
All Merchant fees that the Merchant needs to charge its customers are accumulated in the Merchant Wallet at the time of customer transaction. Paysafe's fees can either be deducted directly from the Merchant Wallet (MW) balance or can be settled on a monthly/quarterly basis by invoicing the Merchant.
To allow for the ultimate flexibility, all merchant fees must be provided by the Merchant on a per-transaction basis. This approach allows the Merchant to execute different pricing schemes based on regions, currency, customer loyalty levels, dynamic fee structures, and other information that is only available to them.
Customer device information is critical in all risk and compliance assessments in the digital wallet offering. Paysafe uses ThreatMetrix as the preferred device intelligence solution.
The Merchant is required to pass in the data as received by ThreatMetrix, to avoid double billing in the case where Paysafe fetches the device information separately from Merchant.
Payment Methods represent the supported customer's payment instruments for deposit and withdrawal operations. The supported payment methods are:
Rapid Transfer (only for Deposits)
Bank transfers is only supported for Standalone Credits. For EUR, it should be through SEPA, and for GBP it should be through Faster Payments.
Deposits and withdraws are supported through the following transaction types: