Digital wallets allow people to hold, send, and receive money through electronic transactions. A digital wallet is just a tech update to the traditional, physical wallet you might keep in your pocket or purse. Most digital wallets have all the functionality of regular old wallets, the big difference being that you can access them through connected devices like a computer or a mobile phone.
The first digital wallets were created for online shopping. Websites like eBay needed a solution for return shoppers to make faster transactions, rather than adding their payment information with every different purchase.
Mobile payment options progressed, and in 2014 Apple Pay expanded the use of digital wallets to all iPhone users. Today, we can do everything, from buying groceries at the store to instantly sending and receiving money, from the convenience of our smartphones.