GoKawiilThe other major value of digital wallets comes from their security features. If someone steals a physical card, they can use it to make smaller purchases that usually don't require authentication. Many stores don't even ask for a signature, let alone check to make sure it matches what's on the card. In contrast, someone who steals your phone can't use your digital payment methods since they're protected by your device PIN or face/fingerprint scan.
Mobile payments offer the same security protections as chip cards or contactless card tapping. These methods create a one-time transaction ID (known as tokenization) that's useless if stolen, instead of exposing all the actual card data like swiping the magnetic strip does. However, digital wallets add another layer of security by storing a unique number for each card that's not tied to the real one.
Contactless payments with your phone also reduce the potential risks of physical card usage. If a chip reader fails, you might swipe the card as a fallback, which is the easiest method crooks can use to skim card info. While minor, there's also no risk of you forgetting to put your phone back into your pocket, compared to accidentally leaving a card in the chip reader.
If you lose your phone, you can mark it as such using the online portal to disable card access. Marking one device as lost doesn't remove cards from other devices (so you can continue to use Apple Pay on your Mac with a lost iPhone, for example). You can similarly disable a lost credit card through an online bank account, but this requires waiting for a replacement card to come in the mail, and the old one will be shut off everywhere you use it.
Finally, keeping your payment details in one wallet reduces your attack surface compared to typing them into every website you shop at. Every place you allow to save your payment details is another that could expose them if it gets hacked.