CHANDLER, Ariz.– When dreaming of greater digital wallet usage, forget about payments.

Yes, you read that right.

Indeed, the ability for a consumer to pay with a smartphone alone won’t foster usage of digital wallets. Rather, financial services players should brainstorm ways in which the technology can create new opportunities for shoppers. In other words, the goal of digital wallets isn’t about replacing plastic, which works well; rather, it’s about creating value-added features that center on improving the digital commerce experience.

That was the main message delivered by Tom Poole, MVP of digital channels at Capital One Financial Corp., one of the Top 10 largest US banks by deposits as well as a major card issuer, at last week’s Net.Finance conference. This point has also been heralded by card issuers like American Express and MasterCard.

“Between a tap and a swipe, there’s not much difference,” Poole said.

However, a smartphone, which Poole called a “cloud-connected device in consumers’ pockets,” empowers financial institutions to offer a lot of “great things” to consumers. He pointed to such opportunities as helping consumers better manage their money, providing contextual offers and improving pre- and post-purchase experiences.

“There will be an explosion of mobile payment apps,” Poole said. “The commerce space is incredibly rich and rewarding for players. …There will be a massive amount of innovation once the entrepreneur community gets it.”

Beyond talking about the promise of digital wallets, Poole highlighted a number of misconceptions around the technology, two of which caught our eye. For one, Poole argued that the notion of consumers using all 10 of their cards is “fanciful” as many people’s spending patterns stay fairly concentrated to one card.

As such, he asked: “Why do you need a third-party wallet? Why isn’t the phone the wallet?”

Secondly, though penetration among merchants accepting NFC payments has been low, Poole pointed out how only a small number of merchants — a 100 or so — account for the majority of purchases made in America. In other words, there doesn’t have to be “a lot” of NFC-equipped merchants.

Still, he highlighted a number of obstacles to digital wallets becoming the norm in the United States, including nailing in the secure element; having disparate parties play together; solving convenience riddles; and getting additional NFC-equipped handsets into the pocketbooks of American consumers.

In a separate session, an analyst argued that the issuers are the ones which will give digital wallets’ flight.

“Card issuers will drive the digital wallet because they own the customer relationship,” said Tiffani Montez, principal analyst of eBusiness and Channel strategy at Forrester Research.

Yes, you read that right.