Digital wallets have significant implications for financial transactions by enhancing convenience and security. They enable users to store payment information electronically, facilitating quick and easy transactions using smartphones or other devices. This technology also minimizes the need for physical cash, reducing risks associated with theft or loss. Additionally, digital wallets often integrate security features such as encryption and tokenization, protecting users' financial information from fraud. As adoption grows, digital wallets are transforming how consumers interact with businesses and manage their finances.