Digital wallets and smart cards are important electronic payment technologies that have transformed the way customers and businesses conduct transactions in e-commerce. They reduce dependence on cash and traditional paper-based payment methods and provide convenient, fast and increasingly secure ways of making payments. Although both technologies are used for electronic transactions, they differ in their form, working mechanism, storage of information and areas of application. A digital wallet, also called an electronic wallet or e-wallet, is a software-based system that allows users to store payment-related information electronically and use it to make payments through computers, smartphones, tablets or other connected devices. A digital wallet may store information such as debit card details, credit card details, bank account information, electronic money and, in some cases, identification or loyalty information. In e-commerce, digital wallets enable customers to complete purchases without repeatedly entering their card or banking information on every website. The basic working of a digital wallet involves linking it with one or more payment methods. A user may add a bank account, debit card or credit card to the wallet. During an online purchase, the customer selects the digital wallet as the payment option, authenticates the transaction and authorises the payment. The wallet communicates with the relevant payment system, and the transaction is processed electronically. Authentication may involve a password, PIN, one-time password, biometric verification such as fingerprint or face recognition, or device-based security. Digital wallets can be broadly divided into different types. Mobile wallets are applications designed mainly for smartphones and are widely used for online and offline payments. Web-based wallets can be accessed through internet browsers and are useful for online shopping. Some wallets are connected directly to bank accounts, while others may maintain a separate stored balance. There are also wallets integrated into e-commerce platforms, allowing customers to pay conveniently during checkout. Digital wallets offer several advantages in e-commerce. The first is convenience. Customers can make payments quickly without carrying physical cash or entering lengthy payment information repeatedly. The second advantage is speed. Wallet-based transactions can reduce the time required to complete checkout, which improves the overall shopping experience. This is particularly important in mobile commerce, where customers prefer simple and quick payment processes. Another important advantage is security. Digital wallets can use tokenisation, encryption and multi-factor authentication to protect payment information. In tokenisation, sensitive card information can be replaced with a unique digital token during a transaction. This means that the merchant may not receive the customer's actual card number. Device authentication and biometric verification can provide additional protection against unauthorised use. Digital wallets can also support transaction records. Customers can view previous payments, receipts and other transaction details through the wallet application or associated account. Businesses benefit because digital payments can be automatically recorded, reducing the need for manual