Digital wallet vs. mobile wallet: What to know
Quick insights
- Digital wallets enable electronic payments from any internet-enabled device.
- A mobile wallet—a type of digital wallet—is designed specifically for use on mobile devices, such as smartphones, smartwatches and tablets.
- Digital wallets can be used for online purchases and mobile-optimized versions of digital wallets generally support contactless payments in stores.
When making purchases, you don’t always have to rely on traditional payment methods. Many vendors now accept electronic payment methods like digital and mobile wallets. These wallets are similar in that they allow you to make digital payments, but one fundamental difference is their device compatibility.
“Digital wallet” is a broad term for any electronic wallet used to make digital payments on a device, including desktops, laptops and smartphones. Mobile wallets are a specific category of digital wallets designed for mobile devices. Because people often use these terms interchangeably, it can be confusing.
Let’s help clear up the confusion and unpack the similarities and differences between digital and mobile wallets.
Digital and mobile wallets explained
Digital wallets and mobile wallets are not the same thing. Here are some things to know:
- Digital wallets: A broad category of payment apps that facilitate digital payments on an internet-enabled device, including desktops, laptops, mobile phones and more. Digital wallets store your credit or debit card information and allow you to make digital purchases.
- Mobile wallets: A version of a digital wallet built specifically for use on mobile devices like smartphones, smartwatches and tablets. Mobile wallets are typically equipped with contactless payment technology, often allowing you to make in-store purchases.
Digital wallet providers often create versions of their app that are optimized for mobile use, while using the same product name across all platforms. For example, Apple Pay® can be used for online payments via the Safari browser on a desktop or laptop, and you can download the mobile version of the wallet—also called Apple Pay—for your iPhone.
Key differences between mobile and digital wallets
Both mobile wallets and digital wallets enable digital payments, but they differ in device compatibility, the types of transactions you can make and how they help protect your information.
Device compatibility
You can generally use digital wallets on any internet-enabled device, while mobile wallets are usually accessed only through mobile devices. It’s possible your device already has a digital or mobile wallet installed. If not, you can download one.
When you go to the app store on your device, you’ll typically be presented with the version of the payment app that’s designed for your device.
Transactions
Digital wallets allow you to make electronic purchases online, and depending on the device its installed on, you may be able to make payments in stores. Mobile devices are generally equipped with Near Field Communication (NFC) chips that enable in-store purchases. Desktops or laptops don’t have this hardware.
So, a digital wallet installed on your laptop or tablet usually can’t be used to buy things in stores, while a mobile wallet on your mobile device can.
Security features
Digital wallets installed on a desktop or laptop tend to have the following security features to help protect your personal and financial information:
- Passwords
- Two-factor authentication
- Encryption
Mobile wallets may use these security features:
- Biometric security (fingerprints or facial recognition)
- Tokenization
How to set up mobile or digital wallets
Your device may come pre-loaded with a digital or mobile wallet. Here are a few examples of digital wallets:
- Apple Pay
- Samsung Pay
- Google Wallet™
- PayPal®
Check your device to see if one of these apps is available. If you don’t already have an app installed, you can usually download one from your device’s app store. The app store typically provides a version of the wallet that’s compatible with your device.
In summary
Digital wallets and mobile wallets both facilitate electronic payments on internet-enabled devices, but they have several differences. Mobile wallets are designed for mobile devices and feature contactless payment technology, allowing for in-store payments. A digital wallet on a desktop or laptop can only make online purchases, as these devices aren’t equipped for contactless payments.
Digital and mobile wallets also differ in security features. Digital wallets for desktops or laptops typically use encryption, while mobile wallets often employ tokenization.
Your device may come with a digital or mobile wallet pre-installed, or you can download one from your device’s app store.
