Digital wallets enhance online shopping security by providing encryption and tokenization techniques that protect sensitive payment information. When a user makes a purchase, the wallet generates a unique transaction code, keeping the actual card details private. Additionally, many digital wallets offer two-factor authentication and biometric security features, such as fingerprint recognition, which further safeguard against unauthorized access. By minimizing the sharing of sensitive data, digital wallets significantly reduce the risk of fraud and enhance users' trust in e-commerce platforms.