Meaning :  

A wallet refers to a storage tool for money, with physical wallets holding cash  and cards, while digital wallets store money electronically for online or QR-based  payments.

Example :  

For example, a leather wallet you keep in your pocket is a physical wallet,  while apps like Paytm, Google Pay, and Phone Pe function as digital wallets.

How to Understand :

Consider a wallet as a secure holder for your money -physical wallets keep cash, while  digital wallets manage virtual money accessed through your smartphone.

Importance :

Wallets help organize your money, making it easy to access when needed.

Digital wallets facilitate quick and cashless payments, enhancing shopping convenience.

They assist in tracking spending through a record of your transactions.

Wallets are convenient and widely accepted for daily payments, making transactions  smoother.