What is a digital identity wallet?
Imagine: in the near future, every resident of the European Union has an app on their phone with the government issued digital ID (or electronic ID, eID), but without the current limitations in its use. From this app, everyone can legally identify themselves as you do now with a passport, driving license or ID card.
This app also functions as a wallet or an access ticket to various events and can contain all sorts of other personal data. For example: your bank details, account balance, insurance information, medical prescriptions, drivers license, loyalty cards, but also education credentials like diplomas. Essentially, everything you used to carry in a big wallet and more. Securely and conveniently stored in one place on your phone.
But, with one major difference. If you need to share data from one of these credentials, you will only share what you need to share to get a service or a product.
For example only share that you are over 18 without sharing your full passport or ID card. Or that you have enough money in your account (not the amount), or that you are a member of a club, frequent flyer program etc. That all-in-one app is "the wallet."
Opportunities of the EU Digital Identity Wallet for travel
For the public transport sector, a wallet offers interesting possibilities.
Think of checking in for a flight for example. This could be done with the wallet by securely sharing only the required passport data digitally, instead of scanning the full biographical page that would possibly share to much personal data.
And not just that. The wallet could contain the boarding card and share additional data and derived attributes, meaning the fact that you’re over 65, instead of your full date of birth.
But, transport is more than aviation. So, let’s look at other means of transport also.
Say someone decides to share specific data from the wallet for authentication to board a train. In that scenario, transport providers can match this information with a profile (known profile + subscription = transport). If someone then does not have a profile but is eligible for a discount (e.g., for student or seniors discount), payment details can be combined with the wallet. That would provide direct access to transport. Subsequently, the wallet could indicate age categories with a derived attribute from the wallet without sharing the date of birth. Meaning, there is no need to show multiple cards (with too much information).
Potential benefits of the EU Digital Identity Wallet in travel
Simplified check-in
Travelers can check in with public transport using their wallet by simply holding their phone to the check-in pole. That saves time and reduces the need to carry and/or process different physical cards. For check ins that require you to share your passport or ID-card, like for a flight and often for a hotel, the EU Commission has announced the plans for an EU Travel app. This app will allow you to share only the verified data from your passport that is needed for checking in to a flight or a hotel. No more scans/photos of a passport holder page, but only the data that is needed is shared securely.
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Automatic discounts
With the wallet, travelers could pay and simultaneously get the automatic benefit they are entitled to because of their age or discount membership. This without the need to show extra information to proof the right top the discount. The wallet verifies the required information without sharing additional documents or cards containing personal (and probably too much) data, such as date of birth.
Integrated payments
Currently, checking in via subscriptions and payment cards is already possible. What’s next is that an individual can do this with their digital wallet. If one sets it up, their wallet can contain payment information, making it easier for travelers to pay for their journeys. That makes cash payments and topping up public transport cards unnecessary.
Easier transfers between different transport providers
Travelers can more easily transfer between various transport providers and modes of transport (bus, train, metro, shared car, etc.), as they can use their wallet for a variety of services. Travel could be much more convenient and seamless in this way!
The future of data management in travel
In the long term, the use of the European Digital Identity wallet could lead to more personalized service, better protection of personal data, and cost savings and increased efficiency. Additionally, it may mean that companies store less personal data as they are offered and process only the data they are allowed to have per transaction. In other words, GDPR-compliance will become easier.
To prepare for the rolling out of the first wallets in the EU Large Scale Pilots are being done to test the wallet and the ecosystem. The current benefits mainly concern digitally providing information. For instance, a significant reduction of paperwork, although some paperwork will always be required as you must store it for audit trails, demonstrability and internal processes.
However, should this ever change, it would bring additional benefits if companies did not have to store personal data. After all, data you don’t have, you don’t need to protect. On the other hand, this could also mean that you may need help to create a complete personal profile. The further development of this remains to be seen.
Proactive approach and collaborations
Our advice: don’t wait. Developments regarding the European Digital Identity Wallet are moving fast! Keep a close eye on them and consider how this will affect the transport sector and your organization. For example, start thinking about partnerships with other transport providers for interoperability and sectoral agreements, and how to safeguard the needs and wishes of travelers in all of this.
Exploring impact and opportunities together
The wallet certainly has the potential to significantly improve the experience of both travelers and transport providers in the sector. The question is just: how exactly? Feel free to get in touch! Then we can explore the impact and opportunities of this transition and the wallet for your organization together.
Further reading on this topic