Digital Wallet

DEFINITION of 'Digital Wallet'

A system that securely stores users' payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology. They can also create stronger passwords without worrying about whether they will be able to remember them later. Digital wallets can be used in conjunction with mobile payment systems that allow customers to pay for purchases with their smart phones. They can also be used to store loyalty card information and digital coupons.


Also known as an e-wallet.

BREAKING DOWN 'Digital Wallet'

By storing all of a consumer's payment information securely and compactly, digital wallets largely eliminate the need to carry a physical wallet. Also, digital wallets are a potential boon to companies that collect consumer data. The more companies know about their customers' purchasing habits, the more effectively they can market to them. The downside for consumers is a loss of privacy.

RELATED TERMS
  1. Bitcoin Wallet

    A Bitcoin wallet is a software program where Bitcoins are stored. ...
  2. Share Of Wallet - SOW

    A marketing term referring to the amount of the customer's total ...
  3. Paper Wallet

    A paper wallet is an offline mechanism for storing Bitcoins. ...
  4. Digital Money

    Any means of payment that exists purely in electronic form. Digital ...
  5. Near Field Communication (NFC)

    A wireless technology that allows users to make payments by placing ...
  6. Digital Marketing

    Digital marketing is a subcategory of marketing which uses digital ...
Related Articles
  1. Personal Finance

    4 Best and Safest Password Manager Apps for 2016

    Find out which password managers are the best at keeping your passwords secure while managing critical data you use in your daily digital life.
  2. Trading

    Best Ways To Protect Your Bitcoins

    Just like any other valuable asset, its important to keep your bitcoins safe. Here are few ways to protect bitcoins from threats like computer failures, loss of passwords, and hackers.
  3. Financial Advisor

    Estate Planning Goes Digital: How to Get Started

    Digital estate planning is an important part of the estate planning process given today's tech-centric world. Here's how to create this type of plan.
  4. Markets

    What Is Cold Storage For Bitcoin?

    Virtual currencies like Bitcoin have grown bigger and stronger in recent years. But with their increased usage has come a rise in hacking and fraud.
  5. Markets

    How Digital Payments Will Change Commerce in 2016

    The way we transfer and spend money is constantly evolving, and 2016 is poised to expand digital payments like we've never seen before.
  6. Markets

    Is the Payment Processing Industry Evolving? (PYPL, TGT)

    Learn about the many changes in commerce and payment systems that are happening in the rapidly evolving payment processing industry.
  7. Personal Finance

    How Does Apple Pay Work? (AAPL)

    Discover why more businesses and smartphone users are opting to participate in Apple Pay, a new, revolutionary mobile wallet program.
  8. Personal Finance

    Is It Safe to Send Money Through Gmail? (GOOG)

    Learn why Google's safeguards minimize the risks of sending money via Gmail, but also realize how hackers' sophistication always renders the Internet less than 100% safe.
  9. Personal Finance

    How Sending Money on Gmail Works

    Learn how sending money via Gmail works, and understand how Google makes money from offering this service despite it being free to use.
  10. Professionals

    Do's & Don'ts Of Digital Marketing

    Digital marketing is not as scary or as complex as it is often made out to be, but there are certain best practices that you should follow to make it work.
RELATED FAQS
  1. What are the GAAP standards for digital document storage?

    According to Sarbanes Oxley Act (SOX), companies are required to keep all documents that contain information about a company's ... Read Answer >>
  2. Can you pay off a Walmart credit card in store? (WMT)

    Understand the various methods that consumers can pay off a Walmart credit card. Learn which options are the easiest and ... Read Answer >>
  3. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ... Read Answer >>
  4. What are the advantages of paying with Bitcoin?

    Learn how payments made with Bitcoins offer certain advantages over standard currency, including user anonymity, no taxation ... Read Answer >>
  5. How has the shift to e-commerce affected the profitability of companies in credit ...

    Learn how the shift to e-commerce has benefited credit services companies by making it easier for consumers to use credit, ... Read Answer >>
  6. What are the pros and cons of digital gift cards (e-gift cards)?

    Examine the pros and cons of gift cards. Learn about protection in case of loss, monitoring spending by teens and wasted ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center