From identity to utility: adding payments to a digital ID wallet changes everyday govt interactions – Visa White paper

In a new white paper, Visa explores how citizen‑wallet initiatives — secure apps that hold official IDs and credentials — are gaining momentum globally. The payments innovator cites more than 80 governments planning, piloting or deploying them, according to its own research.

In “From identity to utility: How governments can unlock the potential of citizen wallets with integrated payments,” Visa says that wallets that only store identity tend to be used for occasional tasks such as licence renewals, but their value increases substantially when they support payments and authenticated transactions.

These enable activities like receiving benefits, signing official documents or completing tax processes directly on a mobile device. The paper highlights growing international interest in integrating payments into digital ID systems, citing the EU Digital Identity Wallet Consortium and World Bank research showing that digital ID and digital payments form the core infrastructure for modern government‑to‑person services and financial inclusion efforts.

The payments giant uses scenarios to illustrate how adding payments to a digital ID wallet changes everyday government interactions. With an ID‑only wallet, a citizen can view their tax information online but must switch to a separate payment system to settle what they owe, and any refund arrives later by check.

Once payments are integrated, the entire process becomes contained within the wallet. The citizen receives a refund notification, authenticates with a biometric check such as a facial scan, and the funds are released instantly to a verified bank account.