Method and device for digital payment transactions

A cardholder electronic device for use in a digital payment transaction, comprising:

• a mobile device processor module;
• a communications module for transmitting and receiving data, the communications module operably connected to the mobile device processor module;
• and
• a data storage module operably connected to the mobile device processor module and having stored therein a digital wallet application, merchant-related data, and instructions configured to cause the mobile device processor module to:
• generate dynamic magnetic stripe data associated with a digital payment card of the digital wallet application;
• retrieve the merchant-related data stored in the data storage module;
• and
• encode the generated dynamic magnetic stripe data and the retrieved merchant-related data in a machine-readable visual code for use in the digital payment transaction.

A merchant device for use in a digital payment transaction between a cardholder and a merchant, comprising:

• a visual code scanner module for reading a machine-readable visual code having encoded therein dynamic magnetic stripe data and merchant-related data;
• a processor module operably connected to the visual code scanner module for separating the dynamic magnetic stripe data from the merchant-related data;
• and
• a transmitter module operably connected to the processor module for:
• transmitting the merchant-related data to a merchant payment device such that transaction data can be generated by the merchant payment device based on the merchant-related data;
• and
• transmitting the dynamic magnetic stripe data to the merchant payment device for authorizing the digital payment transaction.