A digital wallet is a secure application that stores, manages, and presents verifiable digital credentials on behalf of an individual. It serves as the user-facing layer of digital identity, the place where credentials from multiple issuers come together under a person's direct control.
The holder's interface
In the three-party model of digital identity, issuers create credentials, verifiers check them, and holders carry them. The wallet is where holders interact with the system. It receives credentials from issuers, stores them securely, and presents them to verifiers when needed.
A wallet might hold a mobile driver's license from the DMV, a diploma from a university, a professional license from a state board, and a healthcare credential from an insurer, all in one place, all under the holder's control.
What are the different types of wallets?
Digital wallets come in several forms, each with different characteristics.
Native platform wallets are built into smartphone operating systems. Apple Wallet, Google Wallet, and Samsung Wallet can store mobile driver's licenses and other credentials alongside payment cards and boarding passes. These wallets benefit from deep integration with device security features.
Custom government wallets are purpose-built applications developed by or for state agencies. The California DMV Wallet, for example, allows residents to store and present their mobile driver's licenses and vehicle registrations. These wallets can be tailored to meet specific state requirements and provide a personalized user experience.
Third-party wallets are developed by independent providers and may support credentials from multiple issuers across different jurisdictions. These wallets compete on features, usability, and privacy protections.
What wallets do
At their core, wallets perform several essential functions.
Receiving credentials: When an issuer provisions a credential, the wallet generates device keys and securely receives the signed data package.
Secure storage: Credentials are stored in encrypted form, protected by the device's security features, and accessible only after the holder authenticates.
Selective presentation: When a verifier requests information, the wallet displays the request, allows the holder to approve or decline, and shares only the specific authorized attributes.
Privacy protection: Well-designed wallets enforce minimal disclosure, warn users about excessive data requests, and support privacy-preserving proof formats.
Wallet requirements
For holders, the wallet is the face of digital identity. It must embody usability, security, privacy, and portability.
Usability means the wallet feels like familiar apps, clean, intuitive, and frictionless. Presenting a credential should be no harder than using a boarding pass.
Security means strong cryptography protects credentials, but that complexity is hidden from users. People shouldn't need to understand keys or signatures to trust that the wallet is safe.
Privacy means the wallet defaults to minimal disclosure, making it obvious what data is being shared and with whom.
Portability means holders are not locked into a single wallet provider, typically through re-issuance or re-provisioning of credentials under issuer policy, rather than direct transfer between wallets or devices.
The promise of wallets
Done right, digital wallets empower individuals. Instead of handing over a plastic ID that reveals everything, you share only what's needed. Instead of managing dozens of passwords and paper documents, you carry verifiable digital credentials that work across contexts. The wallet becomes the tool that puts identity back in your hands.
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