1. What is a digital wallet?

Also known as an “e-Wallet,” a digital wallet is a cloud-based service that helps people to transact online. For example, any website or app you use to make a payment is considered a digital wallet. It’s common for individuals to use anywhere from 3-5 different apps at once.

2. How do digital wallets work?

Digital wallets usually come in the form of an app you can download on your smartphone or wearable device. You can use them at any participating store or website to make purchases. Online stores tend to accept a combination of wallets whereas only retailers that have a point of sale (POS) terminal can accept digital payments. Check out our Guide to Protecting Your Digital Wallet to learn more about the different types of technology each wallet uses.

3. What else can digital wallets do?

In addition to credit and debit cards, digital wallets can also store:

  • Gift cards
  • Loyalty rewards cards
  • Coupons
  • Boarding passes
  • Hotel reservations
  • Concert tickets
  • Gym memberships
  • Movie tickets
  • Student ID cards

Keep in mind that e-wallets can get cluttered, too. Be sure to “clean out” yours every few months to keep it organized.

4. What is the best VPN for digital wallets?

The best VPN will be one that provides strong security features like AES-256 encryption, a kill switch, and a verified no-logs policy. This will help keep your data safe from hackers and protect your transactions while on a secure server. We recommend using a premium VPN like NordVPN or IPVanish whose claims have been verified by independent security auditors.