KDE 4.12 comes with a KWallet GnuPG backend, which is more secure. More info here, including how to move existing wallets.
(Note: Tom Leek has written a more detailed analysis on StackExchange.)
I started using KWallet a few months ago to stop reusing same passwords on multiple sites. Using KDE Wallet plugin for Firefox, I setup my passwords to be automatically stored in a KWallet file, which was the best solution I found for Firefox on Linux (other than Lastpass, but it stores passwords remotely and is closed source, which I don’t prefer when dealing with passwords). Read More...