Digital Wallet vs Credit Card


Nowadays people prefer using a digital wallet because it is convenient for them and they don’t have to carry much cash with them. On the other hand, there are millions of credit card users who prefer using it over digital payments. But both Digital Wallets and Credit Cards are two different modes for making the payment and they have different offers and deals. So, there some individuals who say that digital wallets are decreasing the usage of credit cards but they might be wrong. In this article, you can see the difference between Digital Wallet vs Credit Card so that you can see both of them are unique in their own way.

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Comparison of Digital Wallet and Credit Card

Basis of ComparisonDigital WalletCredit Card
MeaningA Digital Wallet is based on a software system that stores the credentials of the individual’s account for making payments on various websites. It is linked to your bank account through a credit card, debit card, and net banking.A Credit Card is a type of card issued to an individual to enjoy a certain debt from the bank and earn thousands of reward points. Your spending limit of the credit card depends on the income you earn and on your Cibil Score.
ExamplesPayPal, Paytm, Gpay, Amazon Pay, Airtel Money, etc.SBI Credit Cards, ICICI Credit Cards, HDFC Credit Cards, etc.
Reward PointsYou cannot earn any reward point on making a payment through your Digital Wallet.You can thousands of reward points by spending money and making payments from your credit card.
User AccountYou will have to make an Account on every Digital Wallet Platform before using it.There is no need for an account in order to use your credit card because it can be easily managed through net banking.
Debt LimitYou will have to add money to your digital wallets from your bank account and it will not give you any type of credit limit while making the payment.The credit card gives you the facility to spend more money than the availability in your account. It means that you can enjoy credit limits on credit cards.
Offline PaymentIn digital wallets, you cannot make any payment offline because you will always need a mobile phone and internet access.You can make offline payments through your credit cards at the POS terminals by swiping your credit card.
Build a Cibil ScoreDigital Payments through the wallet will not affect your Cibil Score.Using a credit card regularly and making payments on time will help you to build your Cibil Score.
OffersYou can only earn Cashback and Discounts while making payments from digital wallets.Credit Card allows you to earn reward points, Cashback, discounts, and many other deals on various platforms.
EMI OptionsYou cannot convert any transaction into EMI while making payment from your Digital Wallet.If your transaction amount is high then you can convert it into EMI using your Credit Cards.
Device OrientedDigital Payments through a digital wallet is device-oriented and you don’t have to carry anything else.It is mandatory to carry a credit card or know the credit card details in order to make a payment from your card.
StorageYou can add more than one credit card, debit card, and net banking in one digital wallet for reloading money into it.You will only have one account for making the payment and you cannot do anything to reload your credit card.
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Advantages of a Credit Card over Digital Wallet

  • You can enjoy a credit limit on the card and pay off as per your income.
  • The credit card allows you to convert heavy transactions into EMIs.
  • You can earn thousands of reward points on a credit card.

Advantages of a Digital Wallet over Credit Card

  • Digital payments are more secure than credit cards because they can’t be stolen or lost and they are protected through a password and PIN.
  • The hidden charges of the Digital Wallets are low.
  • You can see the statement of digital payments anytime and don’t have to wait for the completion of the billing cycle.


You have seen all the major differences between Digital Wallet vs Credit Card and both of them are unique in their own way. There are different advantages of using a digital wallet and different advantages of using a credit card. The best things about both these payment methods are that you can use both of them simultaneously. You will have to decide at the time of making the payment whether credit would be useful or a Digital Wallet.

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