Signed, Sealed, Delivered
Digital wallets, which contain tokens to represent a person's identity, payment methods, and loyalty cards, are expected to revolutionize personal data control and privacy. People will have control over how much data they share with organizations and businesses will have to work harder to reward customers for sharing their data. For digital wallets to be successful, they must be easy to use, widely understood, and offer quick and simple access controls for users.
This trend originates from the report:
Accenture - Life Trends 2023
The shift towards digital wallets will also allow companies to collect more valuable first-party data from customers who voluntarily share it. In the near future, the use of digital wallets may eliminate the need for customers to onboard their data to individual service providers, and businesses will have to work harder through loyalty programs and incentives to reward customers for sharing their data. The adoption of digital wallets will require people to have trust in the technology's ability to keep their personal information safe.
To convince customers that digital wallets are trustworthy and secure, four life-centric requirements need to be addressed. These include making tokens easy to obtain and use, helping people understand what a digital wallet is beyond just a payment mechanism, ensuring the wallet is easy to manage, and helping people understand the layers of access they can grant to businesses through their wallet. It's important to note that this transition towards digital wallets will require time and effort, but it holds the promise of giving people control over their data privacy.