The evolution of DigiD and its transition to a more robust and secure European digital identity framework

Consumer and market trends: the rise of digital walletsDigital wallets are becoming increasingly embedded in the European payments landscape, driven by the demand for convenient, secure and multi-functional tools that go beyond simple transactions. In addition to payments, many consumers are beginning to expect features such as digital identification, authentication, and integration with public or private services. While global players such as Apple Pay and Google Pay dominate, European initiatives like Wero and the upcoming Digital Euro wallet are gaining momentum.

However, rather than converging on a single, standardised wallet, the European trend appears to be moving toward a more decentralised model. A model in which multiple wallet providers coexist, provided they can interoperate smoothly. This shift places increasing importance on infrastructure that supports acceptance of a wide range of wallets, enabling merchants and financial institutions to adapt to diverse consumer preferences across markets.

“Our objective is really to be able to accept the wallet,” claims Clément Jozwiak. “On the merchant side, we need to offer the best payment options for consumers, while supporting wallets as they go to market.”

Integrating payments and identity: opportunities and challengesA key development in the digital wallet space is the convergence of payments and identity verification. With new regulations mandating that each European country offer a digital identity wallet, there’s an opportunity to integrate payment functionalities into these identity platforms.

Colombe Hérault highlights that this integration could streamline processes like online age verification, student discounts, and property rental credentials. However, progress varies significantly by country. “For example, France prefers to keep identity and payment separate, while other countries are exploring combined solutions,” Hérault explains. “The challenge for merchants and institutions will be to accept a wide range of wallets, both local and pan-European.”

Additionally, Hérault and Jozwiak see growing potential in combining account-to-account payments (via IBANs) with identity features, especially in sectors like mobility or education. However, these integrations must be secure, seamless and widely accepted.

The promise of a unified European wallet lies in its potential to simplify cross-border payments and identity verification, ultimately creating a seamless experience for consumers across Europe. Early signs of convergence are already visible, with initiatives such as Payconiq and iDEAL joining Wero. Nevertheless, achieving full interoperability is complex. Businesses will need to support both global and regional wallet solutions, navigating a fragmented landscape while delivering consistent user experiences. Infrastructure that bridges national systems will play a critical role in creating a truly pan-European experience.

Digital sovereignty versus consumer adoptionEuropean digital wallet initiatives face stiff competition from well-established global tech players, whose solutions are already widely adopted. While digital sovereignty and the ambition to retain European control over payment infrastructures, remains an important discussion in the fintech sector, consumer adoption is likely to be the deciding factor.

Even the most privacy-preserving or sovereign wallet will struggle if it fails to match the usability of global competitors. Encouraging adoption requires more than regulation. It demands user-centric design, strong branding, seamless onboarding and broad merchant acceptance. “The biggest challenge is convincing consumers to switch from what they use today, which is already very convenient,” admits Jozwiak. “Consumer adoption is at the centre of everything.”

This shows a classic cycle: merchants are reluctant to support new wallets without consumer demand, and consumers are unlikely to adopt new solutions unless acceptance is widespread. Shifting this dynamic will require strong branding, incentives and a focus on building trust.

Building trust: security and fraud preventionAs digital wallets proliferate, security remains a top concern. Protecting transactions against fraud and cyber threats is critical to building user confidence and supporting broader adoption. As new types of wallets emerge security mechanisms must evolve accordingly. Embedding fraud detection into account-based payments, for example, helps ensure that speed and convenience don’t come at the cost of trust.

Worldline is exploring the use of non-card payment rails and integrating fraud prevention into account-based payments – supporting new types of wallets while maintaining security standards. “We provide solutions to collect information about the environment where the transaction is done and use AI to help companies decide whether to process a transaction, add extra authentication, detect anomalies and intervene when necessary,” affirms Hérault. “Creating a secure environment for both consumers and institutions will be vital to mainstream adoption of new wallet types.”

What’s next? The move towards invisible paymentsAs technology advances, the future of digital payments is likely to be contactless, seamless, and increasingly invisible to the consumer. Initiated through biometric authentication, background processes or integrated ID systems, the distinction between payment and identity is expected to blur over time.

“At some point, the frontier between payment and identity will disappear. Payments will become invisible,” foresees Jozwiak. “In this next phase, the challenge won’t just be building the technology. It will be about aligning standards, maintaining user trust and ensuring security in a world where the act of paying becomes almost imperceptible. Worldline is preparing for this future by developing the infrastructure needed to support invisible payments. Whether it’s enabling QR-code based checkouts, facilitating account-based payments or integrating digital identity credentials, the goal is to make transactions effortless, without compromising security.”