What does the term "digital wallet" refer to in financial technology? 🔊
The term "digital wallet" refers to a secure electronic system that stores users' payment information, allowing transactions through smartphones, tablets, or computers. Digital wallets facilitate various financial activities, such as online purchases, peer-to-peer transfers, and in-store payments, by eliminating the need for physical cards or cash. They enhance convenience and security through encryption and tokenization, protecting user data. This technology has gained popularity alongside the rise of e-commerce and mobile payments.
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