The future is in your pocket: Why 2025 is the year of the digital wallet

The most pivotal moment? The European Commission’s unveiling of a mutual-recognition framework for third-country digital wallets; a move that signals the start of a truly interoperable global identity ecosystem. With all EU member states required to provide citizens with a digital identity wallet by 2026, the implications for the rest of the world are seismic.

Make no mistake: 2025 will be the year of the digital wallet.

If you’re wondering what a digital wallet is and why it matters, you have to know that, in today's analogue identity landscape, your personal data lives in filing cabinets and photocopies. From license renewals to healthcare registrations, you’re constantly asked to hand over sensitive documents on paper - introducing privacy risks at every turn.

The digital wallet changes all that.

Imagine a secure app on your phone, protected by biometrics and encryption, which allows you to prove your identity, sign documents, verify your age, or share just the right amount of information… without ever surrendering your actual ID. You won’t need to email your driver’s license or carry a folder of documents. Instead, you’ll tap your phone, and the system will confirm only what’s necessary: “Yes, this person is over 18.” “Yes, this person is a licensed professional.” “Yes, this person has a valid driver's license.”

These wallets are privacy-preserving by design, and PKI (Public Key Infrastructure) is the backbone that makes it possible, ensuring that each interaction is secure, tamper-proof, and globally verifiable.

At the risk of sounding like “A Tale of Two Wallets”, at the core of current global thinking is the evolution of two primary wallet types:

Government-issued identity wallets, which will store credentials such as your ID, driver’s license, passport, or permits. These wallets will be rooted in the most trusted authorities within a country - whether that’s a Home Affairs department or, in South Africa’s case, a growing collaboration between SARB, SARS, and potentially the Department of Home Affairs.

Business-issued wallets, driven by financial institutions, employers, or service providers. These may include credentials like employee authorisations, loyalty points, digital signatures for corporate use, or even travel and cafeteria benefits.

These two streams converge in a single, user-controlled digital environment, turning your mobile phone into a secure gateway to everyday life and work.

Of course, security is not optional. As digital identity takes root, the stakes are high. The next wave of cyber threats will inevitably target the digital wallet ecosystem. The response? Ironclad trust frameworks, strong biometric authentication, and multi-layered PKI implementations.

Biometrics, in particular, are emerging as the cornerstone of digital security. They link device, service, and individual with a level of certainty that passwords never could. In South Africa, this aligns well with ongoing innovations in biometric verification and digital onboarding.

While Europe may be setting the legislative pace, there is no reason South Africa should be left behind. In fact, we’re uniquely positioned to leapfrog legacy systems - particularly in sectors like healthcare, finance, and public services, where secure digital identity can unlock inclusion and innovation.

At Impression Signatures, we’ve long championed PKI-backed digital trust solutions, and now is the time to scale that expertise. As digital wallets become marketplaces for signing, verification, and authentication services, our role as a trusted local PKI provider becomes even more critical.

The world is aligning around a new model of digital interaction. It’s one that puts privacy, control, and interoperability first. Whether you’re a policymaker, CIO, fintech leader, or compliance professional, the time to engage is now. As we saw at the Global Digital Collaboration Conference, no one country or company can build this future alone. It requires shared standards, trusted infrastructure, and public-private partnership.

The future of trust is in motion, and South Africa has a place at the table.

Issued by Perfect Word Consulting (Pty) Ltd
For more information, contact az.oc.satinirt@drowtcefrep