The Congressional Research Service defines a digital wallet as, “a software application that stores payment or account details to facilitate traditional payments that use bank and credit card details and/or cryptocurrency transactions.

In addition, wallets facilitate peer-to-peer transfers, which have grown rapidly in recent years.” These applications allow users to pay with their devices, and they do not need to carry cards around.

Users can enter and store their credit card, debit card, or bank account information and can then use the device to pay for purchases. Digital wallets can also store gift cards, membership cards, loyalty cards, coupons, event tickets, ID information, and even car keys.

Source: crsreports.congress.gov