2023: The Year Digital ID Reaches Your Wallet (and Changes How You Pay)
- Date:December 15, 2022
- Author(s):
- Christopher Miller
- Research Topic(s):
- Emerging
- PAID CONTENT
Overview
2023 is the year of digital ID, as regulatory bodies, standards organizations, governmental agencies, and technology providers have worked out the details and are launching digital identification (ID) features at a scale that will impact consumer behavior within and outside the payments use cases that have dominated wallet functionality to date. Mobile devices are effectively the “super app” that can subsume all use cases, and operating system/OS-specific wallets are the best situated to develop and drive adoption of digital ID. Both the costs of developing a digital ID program and the limited appetite for new payments methods suggest that the major OS-specific wallets—Apple, Google, and Samsung--are best situated to take advantage, yet each are at different levels of maturity in the U.S. market. The steady rollout and adoption of digital ID can in turn incentivize consumer adoption of wallet-based payments. Future development of digital ID for online (nonmobile) use will also present new opportunities to solve KYC/AML (know your customer/anti-money laundering) challenges in the payments and financial services industries.
Learn More About This Report & Javelin
Related content
Generative AI Isn’t Happening Like We’ve Been Told
Although the AI future isn’t coming as quickly as we were told, it will arrive. Bringing that future to life will require new plumbing (read: technological standards and infrastruc...
Fintech Investing: 3 Trends to Watch in 2025
Venture capital investment in fintech is being gobbled up by AI startups, but the implications for players in the payments space is much more expansive. In the year ahead, look for...
Imagining a Cardless U.S. Payments Landscape, Part 2
The physical card—whether credit, debit, or prepaid—is the great driver of transactions across the payments landscape, wielded by large percentages of consumers regardless of age. ...
Make informed decisions in a digital financial world