If you can downside into a dinky wallet like these Maddie wallets, you can use a smaller handbag!
These sweet soft leather wallets have 8 credit card pockets, 2 spaces for notes, a zip section and a dinky coin purse - all in a 10cm x 8.5cm wallet.
I recently purchased this little wallet. I was unsure if I could fit everything in, but it holds all the necessities perfectly (money/cards/ID). Will fit into my smallest bag(s). Very pleased with it.