How accepting Digital IDs opens up new opportunities in the payments sector.

2025-09-23

A Good Gauge

The European Union’s initiative to mandate digital wallet and ID programs is a significant step forward, set for implementation in 2026. This move will lay the groundwork for widespread acceptance of digital IDs, providing valuable insights for other regions.

“This program signals an important direction,” Christopher Miller noted from Javelin Strategy & Research. “While it won’t be directly applicable to the U.S., given our legislative landscape, its standards could still influence global norms.” The launch will address critical questions about implementation and standards before they are rolled out more broadly.

However, the U.S. has made progress in digital ID programs at the state level. Miller’s research indicates that several states have expanded their offerings since last year. For instance, California and Arizona now support Apple and Google wallets for digital IDs, showcasing how the technology is gradually being integrated into existing payment ecosystems.

The key to success will be driving acceptance and adoption. Just as contactless payments became ubiquitous through widespread availability, digital IDs need time and effort to gain traction. As Miller pointed out, “2026 may see continued growth, with more states launching programs and consumers becoming accustomed to using digital IDs.”

Payments Can Lead the Way

Payment companies can play a pivotal role in facilitating the adoption of digital IDs by integrating these technologies into their systems. “The infrastructure for accepting digital IDs is similar to what’s needed for tap-to-pay, making it an opportunity for payment firms,” Miller said.

To capitalize on this, payment providers must ensure seamless integration with existing services and address the challenges of compliance and security. This includes enhancing point-of-sale procedures and providing necessary training to employees to handle digital IDs effectively. By taking a proactive approach, payment companies can create market opportunities while ensuring smoother operations for merchants and consumers.