The rise of digital wallets and the impact on digital identities
The Identity space is seeing an exciting shift with more focus turning to digital identities. Corporates have been faster in adopting the move from physical to digital identities for their workforces, but digitalization projects for citizens seem to take more time. It’s no secret the pandemic has helped push efforts to get solutions to market sooner, but will the response be met with acceptance or skepticism? Nexus CEO, Olivier Dussutour, discusses how the latest changes in the Identity space will impact the adoption of digital identities.
Recent announcements from large technology players such as Apple, Stripe, and with Mastercard acquiring digital identity verification company Ekata, have shown a clear shift in importance for identity products. These solutions focus on giving consumers control of their personal information by having it stored locally on their own devices using user-friendly and frictionless wallets. With solutions such as PayPal, Apple Pay, or Google Pay consumers have already confirmed they feel confident with keeping credit card information in a digital wallet. This trust can now be built upon and moved to documents with more personal data such as personal IDs. This helps to increase the adoption of digital identities.
Beyond consumer use cases, many organizations have already implemented digital identities and use digital wallets that hold identities such as mobile virtual smart cards. Organizations with identity experience and proven security solutions will continue to issue identities for their users and will begin to implement and use the new digital ID/wallets coming to the market. This will again help to increase the adoption of digital identities in other areas.
Digital identities and their accompanying wallets represent the next generation of how citizens will control personal documents and information. These smartphone-based identities create a more secure identity with stronger authentication. Governments understand this just as much as technology companies. The European Union (EU) has recently announced plans to implement a new identification system so EU residents can control their data, rather than share it with tech giants like Google and Facebook. The goal is to start testing this new digital wallet by the end of 2022 with all EU countries being required to offer digital ID systems to their residents. 14 countries in the EU have already rolled out national eID schemes.
Physical identities will remain important, but the heightened focus on digital identities offers a great opportunity for usability, data management, and above all, security.
Secure Identity verification, authentication, and management
No matter if using Apple Wallet or a solution from your local government, security is the biggest risk factor. All parties want to ensure that the data hosted in the wallet is safe and accurate. This is where current Identity leaders will prevail. Organizations with identity experience and proven security solutions will be the backbone for new digital ID products/wallets coming to market.
Trusted solutions enabling Identity verification, authentication and management are important for the adoption and consumption of digital identities. Discover how IN Groupe with its brands' Nexus and Keesing Technologies provides a complete ecosystem of Identity solutions to ensure all parties have secure, innovative and user-friendly tools.