Digital wallet vs. virtual card: What’s the difference?

A digital wallet and a virtual card can both be used for making payments, but they aren’t the same thing. Each has its own uses and benefits. With so many apps and services available, it’s understandable that terms relating to digital payments can cause confusion.

Read on to learn more about the key differences between digital wallets and virtual cards.

What you’ll learn:

• Digital wallets are apps used for storing your payment information and making payments without the need for physical cards or cash. 

• Some digital wallets are designed for mobile devices and can be used for contactless payments in stores, while others are mainly for storing payment information for online purchases.

• Virtual card numbers are unique numbers that are different from your physical card number but are still linked to your credit card account. They’re primarily for online use—to make online shopping safer and more convenient.

• Capital One cardholders can access virtual cards through the Capital One Mobile app, when checking out with autofill on Chrome or with the Eno browser extension.

Here’s a quick overview of some of the key differences between digital wallets and virtual credit cards.

These are the main differences, but you can see a more detailed breakdown of digital wallets and virtual cards below.

A digital wallet is an application that you can access on electronic devices. Like a physical wallet, a digital wallet can hold forms of payment, like your credit cards, but it stores card details in digital form. The main use for a digital wallet is to access your stored payment methods for making purchases. Some digital wallets also store other useful things like gift cards, driver’s licenses, loyalty cards and even digital keys.

Digital wallets often use encryption to protect financial information and also use tokenization for transactions as an extra layer of security. This means that alternate numbers, or tokens, are used for transactions when you use your digital wallet for purchases—not your actual card numbers.

Using your device’s built-in technologies, a digital wallet can be used for making tap-to-pay, contactless payments at a point of sale (POS) in stores. Digital wallet apps that can be used for in-person payments on the go are also called mobile wallets. Examples include Apple Wallet and Google Wallet. 

But not all digital wallets are mobile wallets that can be used in stores—some store your card or account information for online purchases. Paze and PayPal® are examples.

A virtual credit card number is a credit card number that’s connected to your account, but it uses a different number than the one on your physical credit card. Virtual cards are typically intended for online shopping. 

You could have a single virtual card number associated with your account. Or in some cases, virtual card numbers can be generated for single or repeated use at a specific online merchant. At Capital One, cardholders have multiple ways to access virtual cards. For instance, you can create a virtual card through the Capital One Mobile app, generate merchant-specific-use virtual cards when checking out with autofill on Chrome or use virtual cards with the Eno browser extension.

Although virtual cards and digital wallets are similar, they aren’t the same thing. A digital wallet is an application that can store your payment methods in one place. Think of it like your physical wallet but in digital form. You can use digital wallets to make purchases online or to tap your device to pay in stores. 

Virtual card numbers are unique numbers that are different from your physical card number but are still linked to your credit card account. They’re primarily for online use—to make online shopping safer and more convenient.

Both digital wallets and virtual cards can be used for making online purchases. But digital wallets can also store details for multiple payment methods in one place, and apps designed for mobile use can also be used for making contactless payments in stores. Some digital wallets can even digitally store loyalty cards, IDs, event tickets and more.

Learn more about how Capital One customers can use digital wallets and virtual cards for convenient payments online and in stores.