Are wallet tokens the same as network tokens?
Wallet tokens are a kind of network token. When a card is added to Apple Pay or Google Pay, the scheme’s token service provisions a device token tied to that phone or watch. A merchant or PSP can also request its own network token for the same card. Both replace the card number, but they belong to different token requestors. See Xpay wallets.
In detail
Wallet tokens are a type of network token. When a shopper adds a card to a wallet such as Apple Pay or Google Pay, the wallet acts as token requestor and the card scheme’s token service provider issues a token for that device, after approval by the issuer.
Device tokens vs merchant tokens
- Device token: stored in the secure element or cloud of a phone or watch. It is used for wallet payments in store and online, with a cryptogram created by the device.
- Merchant or PSP token: requested by a merchant or its PSP for a card on file. It is used for one-click checkout and recurring payments.
What they share
Both are EMVCo payment tokens: the scheme swaps them for the card number before the issuer authorizes, and both are updated when the card is reissued. One card can therefore have several tokens, linked by the Payment Account Reference (PAR).
For operators, accepting wallets and requesting network tokens are two separate projects. Read Xpay wallets and What Is Tokenization?.