A mobile wallet (or e-wallet) is simply a digital representation of a physical wallet which contains various methods (cash, credit and debit cards) for paying for goods and services. To create a mobile wallet, the user downloads the appropriate app for their mobile phone, enters their personal information and the payment details for their credit and debit cards. The mobile wallet payment method is the same as would be used for a card, the card (or other payment method) details are scanned by the merchant and the amount debited from the user’s account.
These types of wallets offer users the ability to consolidate all of their payment methods in their mobile phone (which offers added security) and provides a convenient means of making online transactions and transferring money to other accounts. When at a physical location all they need do is tap their mobile phone on a merchant’s payment reader.