Taler largely functions like digital cash. You withdraw money from your bank account into your electronic wallet, and can henceforth spend digital cash. The electronic wallet can carry multiple currencies.
Taler uses modern cryptography, ensuring that there is no counterfeit. Your digital wallet is safer than your physical wallet. At most, you can lose its contents because your computer or mobile is irreparably damaged or compromised. Unlike a physical wallet, you can make backups to secure against data loss.
Your transactions are private, neither the exchange nor merchant needs to learn your identity. There is no need to give out credit card numbers or other sensitive information. The merchant will only be able to do exactly the transaction you agreed to.
You will be able to withdraw money to replenish the digital coins in your wallet using your credit card or wire transfers. Afterwards you can pay with one-click using the Taler wallet, which optionally keeps your transaction history on your computer.
Coins in your digital wallet will be of the same denomination as the cash in your physical wallet. Taler is not a crypto-currency, so you do not have to worry about cryto-currency related value fluctuations. Banking with Taler is subject to the usual government protections for finanical services.
Customers interact with the Taler system mostly using a free wallet implementation, which may be an extension or plugin to their browser or a custom application on their computer(s). Typical steps performed by customers are: