Digital wallets have long been a place to store payment cards, boarding passes, and tickets. More recently, tech providers like Apple have added mobile driver’s licenses on a limited basis. As more non-financial products and documents, such as driver’s licenses, are incorporated into these wallets, the way is paved for a tokenized digital ID that could include a range of government documentation, such as Social Security numbers, passports, and others, and a subsequent transformation in payments.

In the United States, that transformation faces considerable hurdles, including consumer adoption and entrenched concerns about privacy. This Javelin Strategy & Research report looks at the nascent technology, its possible use cases, how other countries (notably India and Estonia) have made strides toward digital IDs, and how tech companies are laying the groundwork in the United States.

Key questions discussed in this report:

• How is emerging technology poised to change how consumers’ identities are verified?
• What are the implications of alternative authentication methods for the payments landscape?
• What lessons about alternative authentication can be drawn from advances in such countries as India and Estonia and from the strategy of Apple?

Companies Mentioned:

Apple, Early Warning, FDX, FIDO, Google, Kentucky Fried Chicken, Mastercard, Microsoft, MX, Open Wallet Foundation, Panera Bread, Plaid, Sovrin Foundation