IN the most simplistic sense, a digital wallet is a facility to store and transfer money in an electronic format in a convenient manner. The key aspect to be highlighted here is the convenience, as the owner of the digital wallet could even otherwise have accessed this money through other conventional channels available to him - a bank account, a debit card, a credit card or a prepaid instrument.

The convenience element is particularly accentuated in situations where either the "sender" or the "receiver" or both do not have access to conventional mechanisms of funds transfer.

Let me illustrate this through some simple everyday situations: