In America, both words refer to the same kind of bag. A purse describes a bag with straps that can be worn over the shoulder. A handbag also describes a very similar bag but with more functionality. While purses are much smaller and useful for only essential items. This resulted in luggage makers creating purses for women to use while traveling on trains. The first modern-day purse was envisioned in 1841 by a great entrepreneur of the time named Samuel Parkinson.