how a digital wallet works
digital wallets are applications designed to take advantage of the abilities of mobile devices to improve access to financial products and services digital wallets essentially eliminate the need to carry a physical wallet by storing all of a consumer s payment information securely and compactly digital wallets use a mobile device s wireless capabilities like bluetooth wifi and magnetic signals to transmit payment data securely from your device to a point of sale designed to read the data and connect via these signals currently the technologies used by mobile devices and digital wallets are the card information you ve stored in your wallet and choose to use for a transaction is transmitted from your device to the point of sale terminal which is connected to payment processors then through the processors gateways acquirers or any other third parties involved in credit and debit card transactions the payment is routed through the credit card networks and banks to make a payment 