There are two types of digital wallets: device-based and web-based.

Device-based digital wallets use near field communication (NFC) technology that enables users to pay for purchases without swiping their debit or credit card. Instead, you wave your smartphone (or smartwatch) near a merchant’s card reader to transmit payment account information. Apple Pay, Samsung Pay and Google Pay are examples of device-based digital wallets because they require a smartphone or smartwatch to make a payment.

Web-based digital wallets allow you to add debit or credit card information to a personal account or profile. When you make a purchase online, you log into your account and use it to pay for the purchase. Web-based digital wallets let you pay for purchases without providing card details, billing/shipping address or creating an account on the website where you’re shopping. Visa® Checkout is an example of a web-based digital wallet.