The purpose of using a digital wallet is to securely store payment information and facilitate online or in-person financial transactions. Digital wallets can store credit/debit card details, loyalty cards, and even digital currencies, allowing users to make payments quickly and easily. They enhance transaction security through technologies like encryption and tokenization, reducing the risk of fraud. Additionally, digital wallets often provide added convenience by allowing users to make purchases using their smartphones or wearables, streamlining the payment experience.