Digital wallet
A digital wallet is a virtual form of payment that stores payment information—such as credit card numbers—on a mobile device or computer. Digital wallets enable quick, secure payments in-store and online without needing to use physical cards.
Frequently Asked Questions
These terms are often used interchangeably, but technically, they are different. A digital wallet is used to make payments online. A mobile wallet is a type of digital wallet that can be used to make payments in-store with a mobile device, such as a smartphone.
Paying in-store is made possible using technologies like NFC (Near-Field Communication). The consumer holds their device close to a compatible payment terminal, and the wallet transfers encrypted payment information to complete the purchase.
Yes, digital wallets use enhanced security features to protect payment information from fraudulent actors—including tokenization, which replaces card numbers with encrypted codes. Additionally, wallets may use biometric security measures, such as facial recognition, to prevent unauthorized payments.
