Glossary
Digital wallet
An account that stores value or payment credentials and allows the holder to pay, transfer and receive funds electronically.
Wallets come in two broad forms. A stored-value wallet holds a balance the platform tracks in its ledger. A pass-through wallet stores payment credentials — cards or bank accounts — and initiates payments from them without holding funds itself.
The distinction matters commercially and legally: holding customer funds usually engages financial regulation in a way that storing credentials does not.