7 Features Every Digital Wallet Must Have

In recent years, interest in digital wallets and mobile payments has skyrocketed. Millennials and younger, digitally native generations expect nothing but the best when it comes to managing their financial life. Many have already ditched their physical wallets—because smartphones now do the same job, only faster, smarter, and more secure.

Always connected and empowered by technology, today’s customers demand cutting-edge, highly secured financial solutions that make payments as easy as tapping a screen. But what actually makes a digital wallet stand out? And which features should you look for when choosing the right one for your daily needs?

Join us in this blog as we explore what a digital wallet is, how it works, its advantages and disadvantages, types of digital wallets, 7 features every digital wallet must have, and why Jeton Wallet is one of the best examples in the market today!

What Is a Digital Wallet?

A digital wallet (sometimes called an e-wallet) is a financial application that stores your money electronically, letting you make payments, transfer funds, and even hold multiple currencies—all from your phone.

Think of it as a virtual version of your leather wallet, but far more advanced. Instead of juggling cash, cards, and receipts, everything is stored securely in one app. With Jeton Wallet, for example, you can send, receive, and manage your money across Europe with just a few taps.

Daily life example: Imagine going out for coffee and splitting the bill with your friend. Instead of scrambling for coins or waiting for bank transfers, you can instantly send your share from your Jeton Wallet—fast, simple, and secure.

To learn more about digital wallets:

How Does a Digital Wallet Work?

At its core, a digital wallet securely stores your payment information and connects it with merchants, ATMs, or even other wallets. Depending on the type of digital wallet, you can use:

Near-Field Communication (NFC)—Tap your phone on a contactless terminal.
QR Codes – Scan and pay instantly.
Online checkout integrations—Pay seamlessly on websites or apps.

When you make a transaction, the wallet uses tokenization and encryption to protect your data, so your actual card or bank details aren’t shared with merchants.

Types of Digital Wallets

When people ask, “How many types of digital wallets are there?”, the answer depends on how we categorize them. In general, digital wallets fall into three main categories, each serving a slightly different purpose:

1. Closed Digital Wallets

These wallets are created by companies and can only be used for transactions within that ecosystem. For example, if you load money into a retail store’s app wallet, you can only spend it at that store or its partners.

Example: Amazon Pay Wallet.
Best for: loyal customers who frequently shop with one brand.

2. Semi-Closed Digital Wallets

Semi-closed wallets work with multiple merchants, but only those who have partnered with the wallet provider. While their reach is wider than closed wallets, they are still somewhat limited.

Example: Paytm Wallet.
Best for: users who shop across specific partnered merchants.

3. Open Digital Wallets

Open wallets are the most flexible and widely used. Operated by banks or licensed financial service providers, they allow users to store money, make payments anywhere, and even withdraw cash from ATMs or banks.

Example: Jeton Wallet.
Best for: users who want global accessibility, multi-currency support, and freedom to use their wallet almost anywhere.

Daily life example: Think about traveling abroad. With a closed wallet, you’d be stuck if your chosen store doesn’t exist in that country.

With a semi-closed wallet, you might only be able to pay at certain merchants. But with an open wallet like Jeton, you can pay globally, withdraw locally, and transfer instantly—giving you total freedom wherever you are.

In summary:

Closed wallets—Created by companies for payments within their ecosystem (e.g., Amazon Pay).
Semi-closed wallets—Work with specific merchants and platforms.
Open wallets—operated by banks or financial providers, usable everywhere (like Jeton Wallet).

Digital Wallets Advantages and Disadvantages

Like any financial tool, digital wallets have their pros and cons.

Advantages

Speed and convenience—no need to carry cash.
Enhanced security with biometrics and encryption.
Multi-currency support for travelers.
Easy tracking of spending habits.

Disadvantages

Requires internet access in most cases.
Dependent on merchants’ adoption of contactless tech.
Users must trust the provider’s security system.

The good news? With Jeton Wallet, you get all the advantages while minimizing the downsides, thanks to its global merchant network, offline cash-out options, and robust security.

Features of Digital Wallets

When choosing a wallet, here are the 7 features every digital wallet must have:

1. Security

One of the most important features a digital wallet should have is security.
Mobile wallets can be secured with plenty of robust technologies, such as:

Point-to-point encryption
Tokenization
Passwords
Biometrics
Out-of-band authentication
One-time password (OTP) via SMS
Security questions

Despite the fact that digital wallets are more secure than credit cards, security concerns remain the main obstacle to wallet adoption by consumers. This is why Jeton provides and proves to customers that our app is packed with powerful security capabilities.

If you want to learn more about security for digital wallets, make sure to check out:

2. Rewards

A good digital wallet is taking care of their loyal customers. Jeton Wallet, for example, is offering 1% instant cashback on every purchase made with Jeton.

3. Chat Support

With every technology, sometimes there might be issues. This is why it’s important to have a professional support team ready to help you. When using the Jeton app, you have a Live Support button where you can speak to a member of our team any time of the day.

4. Cash In/Out at Bank Branch or ATM

Holders of mobile wallets can make an ATM cash withdrawal without using a physical credit card. They can also choose to withdraw cash from a bank.

When it comes to ATMs, NFC technology is used—the same contactless technology that lets users pay by tapping their smartphone against a POS terminal.

Despite our world becoming more and more digital, cash is still important in many locations. For example, when users want to buy products from small local shops and markets.

5. Easy and Fast Registration

Our lifestyles are so fast-paced that we can’t lose time during the lengthy registration process. One of the best features of Jeton is that signing up is quick and simple. You only need your name, email, and a strong password.

6. Merchant Payments via Contactless Technologies

By now you probably know that in this time and age merchants need to be digitally adapted for their business to succeed.

Retail clients can make in-store payments using mobile wallets via contactless methods like near-field communication (NFC) and QR codes.

NFC is a contactless remote technology that works within a close distance (up to 10 cm) and provides people with secure payment between POS devices and smartphones.

QR code is short for Quick Response code and is very similar to a barcode. The user can easily scan the QR code via the camera on a smartphone, which interprets the barcode, and a related application or website opens.

Providing NFC and QR payment is a must-have wallet feature considering the ever-increasing user demand for contactless transfers and the convenience it offers.

7. Instant Transfers Between Wallets

Another great feature of Jeton is you can instantly transfer money to other Jeton Wallet holders. All you need is their Jeton ID or email address.

Digital Wallet Examples

Some of the world’s most popular wallets include:

Apple Pay
Google Wallet
PayPal
Jeton Wallet

What makes Jeton Wallet unique is its global accessibility, multi-currency support, and seamless integration with the Jeton Card for both online and offline payments.

How to Use a Digital Wallet?

Using a digital wallet is simple:

Download the app (like Jeton from Google Play or the App Store).
Register and verify your account.
Add money via bank transfer, card, or crypto.
Pay, transfer, or withdraw as needed.

Daily life example: Think about paying bills. Instead of standing in line at the bank, you can settle everything directly from your Jeton Wallet in under a minute.

Are Digital Wallets Safe?

Yes—as long as you choose a wallet with strong security protocols.

Jeton uses:

Multi-layered encryption
Biometric verification
Fraud monitoring systems

This makes digital wallets even safer than traditional cards, which can be lost, cloned, or stolen.

How to Digitize Your Wallet?

Digitizing your wallet means moving all your payment methods—cards, loyalty points, even IDs—into one app. With Jeton Wallet, you can:

Store multiple currencies.
Connect your Jeton Card.
Track spending easily.
Send and receive money worldwide.

It’s like carrying an entire bank branch in your pocket.

If you want to further explore, take a look at our other blogs:

Best Digital Wallet: Jeton Wallet!

With all these features, it’s clear that Jeton Wallet stands out as one of the best in the market.

Jeton Wallet combines:

Global accessibility
Multi-currency support
Seamless contactless payments
Rewards and cashback
Secure transfers

Whether you’re shopping online, paying at a local store, or sending money abroad, Jeton Wallet and Jeton Card make it simple.

Wrapping Up

Digital wallets aren’t just the future—they’re the present. From security to rewards and instant transfers, they’ve transformed how we manage money. And when it comes to combining innovation, global access, and user-friendliness, Jeton Wallet and Jeton Card check every box.

Ready to experience the future of payments? Open your free Jeton account today, order your Jeton Card, and simplify money management. Download the Jeton app now on Google Play or the App Store. With Jeton, your wallet goes wherever you do—smarter, safer, and more rewarding!

Sign Up