Digital Wallet vs Mobile Wallet (2024)

FAQs

What is the difference between mobile wallet and digital wallet? ›

An eWallet (electronic wallet) is a digital version of a traditional wallet that stores payment card information and facilitates electronic transactions. A Mobile Wallet is a digital wallet that resides on a mobile device and allows users to store payment information and conduct transactions through a mobile app.

When using a digital wallet for payments, transaction data may be tracked, leading to privacy concerns about the security of personal information stored digitally. The idea that third parties could track and analyze your financial behavior is a significant privacy concern for many users.

An e-wallet is like a digital card that you can use to pay for things online using your computer or smartphone. It works just like a credit or debit card, but instead of physically swiping or inserting a card, you use your e-wallet to make the payment electronically.

Digital wallets can store credit cards and other types of documents and information, like boarding passes and membership cards, which can help declutter your physical wallet. For instance, you could also use a digital wallet to: Store boarding passes, gift cards and tickets. Organize coupons.

One of the biggest advantages of digital wallets is that they let you pay for things without credit or debit cards, once you enter and store your card and banking information in the mobile payment platform. Host Merchant Services.

The unique features that distinguish smart wallets from normal wallets are the ability to be tracked if your wallet is lost or stolen, RFID protection, fast-card access, minimalist design, high-performance materials, and more.

Risks of Digital Wallets

Mobile wallet providers may be tempted to collect more data than they need or even sell your information without your knowledge or consent. This could lead to identity theft and financial fraud, as well as other problems that come with having no consumer protection in place.

In general, digital wallets are considered much safer than using physical credit cards, which can be more easily lost or stolen. When you lose a physical card, anyone who finds that plastic might be able to use it before you realize it's missing and prior to attempting to cancel it with the card company.

Theft, Fraud, and Loss: The biggest threat to your digital wallet (and your financial data) might be the physical loss or theft of your phone itself. Primarily, we recommend always keeping your phone out of sight and on your person, especially when you're on the move.

What is the primary purpose of a digital wallet? ›

Digital wallets replace the need to carry physical credit and debit cards, gift cards, and loyalty cards, as well as boarding passes and other forms of identification.

Security is of the utmost importance

Mobile wallet transactions are one of the safer ways to make a purchase – using a random number, or token, instead of your account number. Your account number is never seen or stored whether you make a purchase in person or online.

You might also see a digital wallet referred to as an e-wallet, both terms referring to a type of software enabling users to store credit and debit card details and loyalty cards in the cloud.

While digital wallets are versatile tools designed to securely store payment methods and perform transactions, money management and other payment apps typically have specialised functions related to financial management. There are many different types of money management and payment apps.

Some other popular digital wallets include PayPal and Venmo, both of which are uniquely social by allowing you to easily send money to retailers and friends. Zelle is another popular option for digital payments that automatically comes with many bank accounts.

If you have an Android phone, you may find the Google Wallet app in your device's list of apps.

Mobile wallet examples include Apple Pay, Google Pay, Samsung Pay, and PayPal.

There are three types of digital wallets: closed, semi-closed, and open.

In general, digital wallets are considered much safer than using physical credit cards, which can be more easily lost or stolen. When you lose a physical card, anyone who finds that plastic might be able to use it before you realize it's missing and prior to attempting to cancel it with the card company.