How to Use a Digital Wallet

How to Use a Digital Wallet
A man uses an iPhone 7 smartphone to demonstrate the mobile payment service Apple Pay at a cafe in Moscow, Russia, on Oct. 3, 2016. Maxim Zmeyev/Reuters
Anne Johnson
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That wallet in your pocket or handbag is probably stuffed with credit cards, store discount cards, insurance cards, etc. Every transaction you can think of likely can be made using your wallet’s contents. Keeping it safe is the priority.

A digital wallet also holds everything you need to make a transaction. The difference between a digital wallet and a physical wallet is convenience and security. You can’t pickpocket a digital wallet. And it keeps up with today’s high-tech commerce. But what exactly is a digital wallet, and how does it work?

How a Digital Wallet Works

A digital wallet, also known as an e-wallet, acts as a payment tool. It refers to software, electronic device, or online service that makes electronic transactions. Usually, in the form of an app, it virtually stores credit cards and debit cards. But it goes beyond just payment.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.
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