Digital Wallet

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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.

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1. Digital Wallet

 
2. Cold Storage

 
3. Share Of Wallet - SOW

 
4. Private Key

 
5. Social Payment

 
6. Digital Money

 
7. Two-Factor Authentication (2FA)

 
8. Apple Pay (AAPL, GOOG)

 
9. Coinbase

 
10. Contactless Payment

Cold Storage

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Cold storage is an offline wallet provided for storing bitcoins. With cold storage, the digital wallet is stored on a platform that is not connected to the internet, thereby, protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible to.

BREAKING DOWN 'Cold Storage'

When a checking, savings, or credit card account with a traditional bank has been compromised, the bank is able to refund the lost or stolen money back to the account holder. However, if your cryptocurrency account or wallet has been compromised and your bitcoins stolen, the owner would be unable to recover his coins. Hence, the need for a safe and secure medium of storage for bitcoins and altcoins.

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Read more: Digital Wallet https://www.investopedia.com/terms/d/digital-wallet.asp#ixzz51mYPTkgy
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