Digital wallets, modern cards, and tokenization: what you need to know

By 2025, digital wallets are expected to become the second most-preferred payment method after physical cards. For businesses ranging from digital banks to on-demand services, this is an ideal way to provide customers, contractors, and employees with a way to make in-store purchases.

Marqeta’s modern card issuing platform enables tokenization, which is a driving force behind digital wallet innovation. With network tokenization, card issuers can instantly push a payment card to a digital wallet on a cardholder’s device without needing to enter card details. They can also instantly update the digital wallet when the underlying card changes.  

This report outlines the benefits of offering digital wallets to your customers over traditional payment methods and takes a deeper look at how tokenization works to enable digital-first, secure payment experiences.