OnlineWallets

Online wallets, or digital wallets, are software-based systems that store payment credentials and related information to enable electronic transactions. They can be accessed via web browsers or mobile apps and are used for online purchases, in-app payments, and some in-store transactions.

A wallet can hold card numbers, bank accounts, digital currencies, and loyalty or transit cards. It may support wallet-to-wallet transfers and connect to funding sources such as cards or bank accounts, often in multiple currencies.

Wallet architectures vary. Hosted wallets store data with the provider; non-hosted wallets give users direct control over credentials; hybrid models combine elements of both. Some platforms also offer merchant-specific wallets.

Security and privacy are central. Wallets use encryption, tokenization, device binding, biometrics, and often two-factor authentication. Compliance programs and data-protection rules influence responsibility for data security and fraud prevention.

Common use cases include e-commerce, apps, and cross-border payments. Well-known examples include PayPal, Apple Pay, Google Wallet, Skrill, and Neteller, with regional variations and integration into banking or merchant ecosystems.

Limitations include potential fees, privacy trade-offs, device dependence, and uneven merchant adoption. Users should review terms on data sharing, security practices, and settlement times.