Using a digital wallet for transactions is significant as it offers convenience, security, and efficiency. Digital wallets store payment information securely, allowing users to make quick and contactless payments from their smartphones or devices. This not only simplifies the checkout process but also reduces the risk of fraud, as many digital wallets employ encryption and tokenization techniques. Furthermore, digital wallets can store loyalty cards and coupons, enhancing the overall shopping experience for consumers and streamlining transaction management for businesses.