The main types of digital wallets are closed, semi-closed, and open wallets. Each type offers different levels of flexibility, access, and functionality for users.

1. Closed wallets: These wallets are specific to a company or platform. Users can only use them to make transactions with that particular business or its affiliates. For example, companies like Amazon and Starbucks offer closed wallets that allow customers to store funds and make purchases within their ecosystems. These wallets are convenient for loyal customers but have limited use outside the company's services.

2. Semi closed Wallets: Semi-closed wallets provide more flexibility, allowing users to transact with a range of merchants, provided they have agreements with the wallet provider. While still limited to a network, this type includes popular options like Paytm or Venmo. Semi-closed wallets are useful for a variety of services, such as shopping, bill payments, and peer-to-peer transfers, as long as the recipient or vendor is within the approved network.

3. Open wallets: Open wallets, typically issued by banks or in partnership with banks, are the most versatile. Users can make payments, withdraw cash at ATMs, and transfer funds to other bank accounts. Examples include Google Pay and Apple Pay. Open wallets offer the broadest range of options and are widely accepted across sectors.