I use a backpack as a handbag. It's a little too large for everyday use but practical when I have to throw a couple of water bottles/books in to entertain the DC. It is basically just one compartment with a drawstring and a flip over magnetic clip, which occasionally pops open.
My wallet has been stolen :( I need to replace my bag. I don't want it to look like a hiking backpack, I want a nice one. with a zip, that can be fastened somehow or at least with an internal zipped compartment large enough to take wallet/phone. Fortunately I had my phone in my coat pocket but if it had been summer, I'd have had my pone in my bag too.