A digital wallet (also known as a virtual wallet or e-wallet) allows customers to store and transfer funds between users without having to transfer money through traditional banking networks. A virtual wallet can instantly send and receive money countless times without ever leaving the platform. It acts like an online piggy bank where an individual or group of people can contribute money to it. The wallet is then able send that money to one or multiple other wallets, quickly and effortlessly.

By now, most of you would of used a version of a digital wallet – PayPal, Google Pay, Apple Wallet, Venmo. These are pretty common types of digital wallets allowing a user to load money into the wallet and then use that wallet to buy goods or services through their platforms, peer to peer transfers or across ecommerce.

The benefit being that once the funds are in the wallet, the platform is able to move it around without it being on a traditional banking network, saving time, money and also allowing international transfers instantly. The user cases and capabilities of a digital wallet allow for some amazing and unique scenarios.