A digital wallet is an electronic tool that stores payment information, identification details, and other personal data on a smartphone or online platform. Instead of carrying physical cards or cash, users can make purchases, transfer money, or verify their identity using their mobile device. Digital wallets often store credit and debit cards, loyalty cards, transit passes, and even digital IDs.

They work by securely encrypting a user’s information and allowing quick transactions through technologies such as near field communication, QR codes, or online authentication. This makes digital wallets both convenient and fast, especially for everyday purchases.

As more services move online, digital wallets have become an important part of modern financial life. They offer a simple way to pay, increase security, and help reduce reliance on physical cards and cash.