Stored value cards and wallets create opportunities to streamline payouts, manage spending, and build stronger customer engagement. As digital payments expand globally, understanding how stored value works and how to issue it effectively can give merchants an edge in both efficiency and customer loyalty.
Stored value is prepaid credit held in a physical card or a digital account. This credit can be fixed or reloadable and used for transactions without direct access to a bank or credit card at the time of purchase.
Common examples include gift cards, store credit, wallet balances, and subscription funds. The defining feature is that the funds are preloaded and ready to use.
Stored value products start with funding. A customer or business loads money onto a card or account — through a card payment, bank transfer, cash deposit, or even a refund. That balance stays available until it’s used up or the card/account expires.
Every time the stored value is spent, the system checks the balance, approves the transaction, and deducts the right amount. Most platforms also give users helpful features like instant balance checks, transaction history, reload options, and low-balance alerts.
Stored value can live in both digital and physical formats. Digital systems let people pay through apps, websites, or integrated checkout tools, while physical cards are verified at terminals before the payment goes through.
Because the money is prepaid, there’s no credit risk at the time of purchase. That makes approval faster, reduces fraud exposure, and avoids relying on a live connection to a bank for every transaction.
There are different types of stored value accounts, but these categories overlap. A card can be both reloadable and open-loop, or single-use and digital, depending on how it’s issued. The main distinctions fall into three dimensions: where the value can be spent (closed vs. open loop), how long it lasts (reloadable vs. single-use), and the format (digital vs. physical).
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Closed-loop |
Open-loop |
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Description |
Usable only with a specific brand, store, or platform. Merchant controls acceptance. |
Accepted broadly at any merchant that supports the card network (Visa, Mastercard, etc.). |
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Examples |
Store gift cards, airline vouchers, retail credits |
Prepaid debit cards, payroll cards, travel cards |
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Reloadable? |
Sometimes |
Often |
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Digital or physical |
Both (commonly physical gift cards, but also digital codes) |
Both (plastic cards or digital wallet-based issuance) |
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Typical fees |
Lower fees since transactions stay within the merchant’s system |
Higher fees due to card network charges (interchange, scheme fees) |
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Usage scope |
Restricted to brand/merchant |
Broad, multi-merchant acceptance |
This distinction helps businesses manage risk: reloadable cards support ongoing relationships, while single-use cards limit exposure in high-risk or temporary scenarios.
Digital formats provide more flexibility and real-time controls, while physical cards still play a major role in industries that rely on in-store or offline redemption.
Branded stored-value cards and promotional credits encourage repeat purchases and increase order amounts.
Issuing store credit instead of a cash refund retains funds in the business. This encourages future purchases.
Stored value cards support users without bank accounts or debit cards, allowing them to make purchases independently.
Stored value supports recurring payments in subscriptions and public transport, with customers preloading amounts into their accounts.
Antom’s digital wallet solutions allow merchants to add a fully branded stored-value wallet inside their app or website. Customers can activate their wallet, top up funds, and pay directly with their balance, while merchants manage the entire flow under their own brand.
The solution supports core features such as account creation, balance checks, and secure payments, and extends to advanced options like promotions, refunds, and peer-to-peer transfers. This gives businesses a flexible way to enhance their payment offering without building a wallet from scratch.
Security and compliance are built in, with fraud prevention systems, PIN and OTP authentication, and professional AML controls to protect both users and merchants. Integration can be done through APIs or SDKs, making it easier for businesses to align the wallet with their existing systems.
For settlement, Antom’s Flexible Settlement helps merchants streamline fund distribution by splitting and routing payments to multiple recipients from a single transaction. Combined, these tools give businesses faster, lower-cost transactions and a more efficient way to manage complex payment flows globally.
Some jurisdictions require identity checks or reports once stored funds exceed certain thresholds. Dormant balances may be subject to escheatment.
To meet PCI DSS, stored value systems must avoid storing sensitive data unless properly encrypted. This helps protect against breaches and fraud.
Security features can include device verification, tokenisation, and geographic limits. These controls help flag suspicious transactions.
Clear rules should govern expired or lost stored-value cards. This protects the user while ensuring effective management of outstanding balances.
Solutions like Antom support global, compliant digital wallet issuance and automated account operations such as onboarding, KYC, and balance management.