How Digital Wallets Like Apple Pay, Google Pay Work: QuickTake

In the US, paying at a physical cash register is increasingly a digital experience. A smartphone’s “wallet” can store copies of debit cards, credit cards, concert tickets — even driver’s licenses and car keys. Usage of digital wallets has surged in recent years as tap-to-pay technology becomes commonplace for everything from public transportation to buying gas or groceries. Some 62% of US consumers said they used digital wallets in 2023, compared with 47% in 2022, according to Federal Reserve surveys.

Usage of digital wallets such as Apple Pay continues to increase among American consumers.

Photographer: Jakub Porzycki/NurPhoto/Getty Images

What’s a digital wallet, exactly?

It’s an app that runs on a mobile phone, tablet, computer or other connected ...