Wallet Dormancy

Wallet dormancy is the status a digital, mobile or prepaid wallet enters when the customer has not used it for a set period, often between six months and a few years depending on the provider and the country. Activity usually means a customer-initiated action such as a payment, top-up or login, not interest or fees posted by the provider. Once a wallet is dormant, the provider may block outgoing payments until the customer re-verifies their identity, since inactive accounts are attractive to fraudsters and money launderers, like a dormant account at a bank. Some providers charge a wallet inactivity fee, where local law allows it. After a longer period, balances in dormant wallets may have to be handed to the state under unclaimed property and escheatment laws, or transferred to a national dormant assets scheme, while the customer usually keeps the right to reclaim the money. Providers usually warn customers before a wallet becomes dormant.