Visa connects digital ID wallets with shifting payments, service expectations

Governments are turning to digital identity wallets as expectations for public service delivery have changed. A major part of that change is the proliferation of commercial digital platforms offering blistering speed and convenience.

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.

When it comes to permit renewals, in the ID‑only model a renewal notice arrives by post. The citizen must manually enter payment details online or mail back a payment slip, creating delays and opportunities for error. With an integrated wallet, the renewal notice appears directly in the app as a digital bill, and the citizen can approve payment immediately using a stored, tokenized credential. Manual data entry is not needed.

Visa’s report positions payment‑enabled wallets as a likely next phase in national digital identity strategies. Visa is partnered with Tech5 on integrating digital payment capabilities with biometrics, identity management and trust infrastructure technologies. Their seven-year strategic collaboration agreement aims to support the development and deployment of digital public infrastructure around the world.

The government of Djibouti signed an MoU with Visa for the development of a national digital wallet that Tech5 is involved with. According to Djiboutian officials, the idea is to eventually roll out a “Smart Wallet” that, apart from expanding access to digital services, will drive financial inclusion by facilitating access to money services.

Another African country also engaged Tech5 and Visa. Ethiopia launched in May 2025 its FaydaPass wallet, as part of its digital public infrastructure program aimed at speeding up financial inclusion as well as verification for access to a number of other government services. Tech5 provided its T5-Airsnap and T5-OmniMatch systems in the development of that digital wallet.

Article Topics

digital government  |  digital ID  |  digital payments  |  digital wallets  |  government services  |  Visa