The Future of eWallets and Shareable Identities: Will It Ever Be the Norm?

If you’ve ever added a credit card or concert ticket to your eWallet, you know it’s typically a seamless and convenient process. With the rise of eWallet and shareable digital identities, individuals and organizations are transacting, verifying identities, and accessing services in completely different ways than just a few years ago.

As digital payments and identity solutions become increasingly mainstream, understanding where the technology stands today — and where it’s headed — is crucial for compliance leaders, technology decision-makers, and business executives.

What’s In Your (e)Wallet?

Digital wallets, or eWallets, have rapidly evolved from niche payment tools to essential components of the global financial ecosystem.

One factor driving their convenience and security? The proliferation of smartphones. Here are a few others:

• Widespread usage: eWallets are projected to account for over 50% of global e-commerce transaction value in 2025, up from over 40% in 2021.¹
• User base: Nearly 60%² of the global population, about 4.8³ to 5.2 billion people, will use mobile wallets by 2025, with especially high adoption in Asia and emerging markets.
• Beyond payments: eWallets now store loyalty cards, tickets, and credentials for government and healthcare services, expanding their utility beyond payments.
• Business adoption gap: While nearly 70% of online adults in the U.S. use digital payments, less than 60% of small businesses accept digital wallets, revealing a gap in merchant adoption.⁴

Shareable Digital Identities: The Emerging Landscape

Digital identity wallets are secure, mobile-based repositories that can manage everything from identity documents, such as government IDs, to credentials and health records.

Besides offering convenience, shareable digital identities are redefining how people prove their identity both online and offline. Digital identity wallets put the user in control, enabling them to store and share verifiable credentials securely.

And the technology will only grow from here. At least 1.5 billion⁵ digital identity wallets are expected to be used by 2029, storing approximately 30% of all digital identities globally.

The EU is mandating digital identity wallets for all member states by 2026, while the UK will launch its GOV.UK Wallet in 2025. The EU Digital Identity Wallet will be recognized across all member states by 2026, providing secure access to public and private services.⁶

In the private sector, major tech companies and financial institutions are deploying digital identity wallet solutions, often integrating them with eWallets and authentication systems.

What’s Driving Adoption?

The momentum behind eWallets and digital identity solutions has been propelled by a few factors:

• Convenience and security:
  eWallets and digital identity wallets provide seamless, secure experiences, enabling users to reduce their dependence on physical documents and facilitate instant verification.
• Regulatory changes:
  New regulations, such as the EU’s eIDAS 2.0⁷ and various national digital identity laws, are accelerating adoption and standardization.
• Financial inclusion: eWallets help bridge the gap for underserved populations, allowing them to access financial and government services in developing regions.
• Business efficiency: Digital identity wallets streamline onboarding, reduce fraud, and help organizations meet KYC and AML compliance requirements.

Challenges to Mainstream Adoption

Though the technology has rapidly progressed in the past few years, eWallets and shareable digital identities still face a few challenges before they can become universal:

• Interoperability: Fragmented standards and a lack of universal frameworks hinder cross-border and cross-platform compatibility.
• Privacy and security: Digitally storing sensitive identity data raises concerns about data breaches and user control over personal information.
• User experience: The complexity of wallet setup and credential management can slow adoption, especially among less tech-savvy users.
• Regulatory diversity: Differing privacy and identity regulations across regions complicate global rollout and acceptance.

When Will Shareable Digital Identities Become the Norm?

Shareable digital identities are on the cusp of widespread adoption, but the timeline will vary by region and sector. We predict that:

• In the short term (2025–2027), digital identity wallets will transition from pilot projects to real-world use, particularly in the EU, the UK, and select Asian markets, driven by regulation and public-private partnerships.
• In the medium-term (2028–2030), digital identity wallets are expected to reach mainstream status in developed economies, with rapid acceleration in emerging markets, as interoperability improves and user familiarity grows.
• By the end of the decade, shareable digital identities are expected to be standard for accessing public and private services globally, with billions of people using these solutions for payments, travel, healthcare, and more.

The Path Forward

eWallets and shareable digital identities are rapidly reshaping digital commerce and identity verification, offering unprecedented convenience, security, and compliance for users and organizations worldwide.

As regulatory frameworks mature and technology continues to advance, these solutions are set to become the global standard for secure and seamless transactions across industries. Businesses and governments that prioritize robust, user-centric digital identity and eWallet solutions today will be well-positioned to thrive in this evolving digital landscape.

To confidently embrace this future, organizations will need trusted partners in identity verification. Shufti empowers businesses with advanced digital identity verification services, including AI-powered document checks, biometric authentication, and real-time compliance screening, to streamline onboarding, prevent fraud, and ensure regulatory compliance across eWallet and digital identity ecosystems.

Learn more about the challenges of verifying identity across the globe in our latest report.