Meaning :  

A wallet is characterized as a financial instrument for storing monetary assets,  encompassing physical wallets that hold cash and cards, and digital wallets that

electronically manage funds for online or QR-based payments.

Example :  

For example, a leather wallet that fits in your pocket represents a physical  wallet, while applications such as Paytm, Google Pay, and Phone  Pe operate as digital wallets.

How to Understand :

A wallet serves as a secure container for financial resources - physical wallets safeguard  tangible currency, while digital wallets provide access to virtual funds through mobile

devices.

Importance :

Wallets facilitate the organization of financial assets, enhancing ease of access and  management.

Digital wallets promote rapid, cashless transactions, significantly improving the efficiency  of payments.

They assist users in tracking expenditures through comprehensive transaction histories,  fostering financial literacy.

Wallets are widely accepted for daily payments, offering convenience and versatility in  various purchasing scenarios.