This line item on a bank statement indicates the process of securely loading payment card details onto a digital wallet or mobile payment platform. For instance, when a consumer adds their Visa card to Apple Pay or Google Pay, this process transmits and encrypts the card information, enabling contactless payments. This creates a tokenized representation of the card on the device, which is used for transactions instead of the actual card number, enhancing security.
The process provides a more secure payment method compared to traditional magnetic stripe cards, reducing the risk of fraud because the actual card number is not shared during transactions. This system emerged alongside the rise of mobile payments and contactless technology, addressing the need for a safer and more convenient way to make purchases. The provisioning of payment credentials also facilitates online shopping and in-app purchases seamlessly.