A digital wallet is like a virtual purse. You top up an amount from your bank card, and then you can spend that balance in the same service or in partner services.
Where do we see it?#
- The wallet inside a ride-hailing or food-ordering app
- Store credit in online shops that keep refund or gift money in your account
- Payment apps that deduct from your balance instead of a card
Advantages#
- Speed: no need to enter the card number and PIN repeatedly
- Fast refunds: returned items refund more simply to the wallet
- Discounts and rewards: some platforms give a bonus when you top up
- Spending control: a set balance helps you control spending
Cautions#
- Money left in a wallet does not go back to your bank until you spend it or withdraw it; read the withdrawal terms.
- Top up only the amount you need.
- Trust reputable, licensed services.
- Enable a password and two-step verification on the account.
Difference from a crypto wallet#
A digital wallet holds fiat currency inside a service; a cryptocurrency wallet manages the keys to blockchain assets and is a separate concept.