Competing visions of digital wallets as super apps or online identity centers presented
The convergence of different capabilities and services in digital wallets was explored in the “Future of the Wallet” webinar hosted by CB Insights on Tuesday, just as Thales releases the results of a survey of consumer response to the digital wallet. digital identification of the EU. Viewed side-by-side, the two snapshots seem to indicate a regional difference, but also a major opportunity for digital ID and biometrics software vendors.
CB Insights Senior Intelligence Analyst for Fintech Elif Yayla noted the replacement of single-purpose wallets with “super wallets” and reviewed market growth.
She noted that wallets are “striving to become the go-to app for all things money management” by combining the storage of payments, bank accounts, insurance and authentication information like biometrics. , among the main trends in the sector. This converges with other familiar trends around digitization and mobile remote access, to drive digital wallets forward.
Statistics from CB Insights suggest that digital wallets are already a $1.5 trillion market and will reach $7.6 trillion by 2027.
The space is increasingly crowded, but with no dominant player so far, according to Yayla, despite the efforts of tech giants. Fintechs have converged on the digital wallet space and wearable device vendors are taking an interest.
Examples of super apps can be found in Alipay and WeChat in China, and Yayla says PayPal has made the most progress towards emulating their model in the West. PayPal has already grown significantly and is planning further investments in the investment space, as well as identity and access management (IAM). However, others still have the opportunity to acquire sufficient user bases to expand into adjacent offerings. SoFi, for example, has moved from student loans to a wide range of services, and even a banking license.
Ultimately, super apps are positioned to dominate fintech over the next decade, according to the presentation.
Another key trend identified by Yayla is the integration of AI financial assistants into major platforms.
Natural language processing and document analysis are the next frontiers for these service ecosystems, says Yayla.
Thales survey shows strong support
A Thales survey shows that the European Digital Wallet ID will be welcomed by around two-thirds of eligible people.
More than a quarter of respondents (27%) currently use a national digital ID system, while 45% use less formal means like scanning identity documents with biometric selfie checks.
The survey shows that about 5% of digital identity users find it difficult to prove their identity to renew an identity document, make a high-value purchase or request financial services, but nearly 30% of those who don’t have not found the processes difficult. However, security is the most important feature of any digital ID wallet, according to 65% of respondents.
“By providing citizens with a safe and convenient way to prove their identity and rights via smartphone, EDIW will enable smooth and secure interactions between citizens, governments and private businesses,” said Youzec Kurp, VP Identity and Biometrics. Solutions at Thales. “The results of our survey give providers a better understanding of citizens’ needs, helping them to maximize the adoption and use of the new wallets that will be introduced across the EU over the next 18 months. Thales, as a leader in digital security and a trusted provider of digital identities, remains fully committed to meeting these needs through field-proven wallet solutions.
Thales has also launched a white paper on “Understanding the European identity experience”.
biometrics | CB Perspectives | consumer adoption | digital identification | digital wallet | EU | identity verification | selfie biometrics | Thales | Thales Digital Identity and Security