When most people hear digital wallet, they likely think of something like Apple Pay, PayPal, or maybe even Venmo. Digital wallets are simply online accounts that let you store, send, and receive money. Some digital wallets allow you to connect directly to your bank account while others offer prepaid debit cards or mobile apps that function as prepaid credit cards. Other digital wallets are virtual currencies (think Bitcoin) or even gift cards.
Regardless of what form it takes, when you use a digital wallet, all transactions occur directly between you and your financial institution; no middleman can see what you're buying or selling. The only thing someone could potentially learn about your purchases is how much money was in your account at any given time.