M-banking or electronic wallets

I know nothing about this topic.
Questions: How is the digital wallet better than an ordinary wallet with paper money.
                what kind of people would be interested in using these wallets.

Links:

http://articles.marketwatch.com/2012-11-29/industries/35420390_1_digital-wallet-mobile-payments-mobile-devices

http://infolab.stanford.edu/~daswani/wallets/

http://www.howstuffworks.com/gadgets/high-tech-gadgets/digital-wallet.htm

Bullet Points:
-Digital wallets allow people to do online payments from their phone or even their wallet.
-you can purchase things from the internet by using digital wallets.
-they can also by downloaded to a smartphone.
-If you own a company you can sell products through digital wallets and it is faster.
-you can protect your information while doing transactions using the digital wallet.


The digital wallet connects to my life because it enables people to do their monetary transactions aswell as to purchase items online. Electronic devices like these are starting to replace old wallets.


questions I still have
How can I prevent loosing my asets if the internet falls.