Digital Wallet: UK’s Plan to Modernize Identity by 2025

What Is the GOV.UK Wallet?

The digital wallet developed by the UK government enables secure, user-controlled sharing of official credentials. 

Individuals will be able to store documents such as driving licences or veteran ID cards 

on their smartphones and selectively share only the information needed for a particular interaction.

Why Is It Being Introduced?

Traditional methods of identity verification often require people to share more personal data than necessary. For example, proving legal age might mean revealing a full name, date of birth, and address. This creates unnecessary privacy risks and inefficiencies. The GOV.UK Wallet aims to resolve this by giving users the ability to share only specific data points.

Key Features of the GOV.UK Wallet

• Selective data sharing: Users can verify age or residency without revealing full ID information.

• Derived credentials: Identity providers can issue new credentials based on government-verified data.

• Interoperability: Built on standards like OpenID and ISO 18013-5 for broader compatibility.

• User control: Data is stored on personal devices, not on centralized servers.

Who Will Use the Wallet?

The wallet is designed for both public and private sector applications. Early users include:

• Veterans will receive a digital Veterans Card in 2025.

• Drivers, as part of a digital driving licence pilot launching later in 2025.

• Banks, landlords, and employers, who can verify identity data securely.

By 2027, the government aims to offer digital versions of all paper- or card-based credentials.

How Does It Work?

The GOV.UK Wallet integrates with the existing GOV.UK One Login service. Identity service providers (ISPs) can connect to the platform to verify user data and issue derived credentials, such as age-verification or employment status.

Use cases include:

• Renting a flat without sharing unnecessary personal info.

• Confirming over-18 status for age-restricted purchases.

• Sharing student status for discounts or service access.

The Wallet uses open technical standards to ensure privacy, security, and cross-platform compatibility.

Challenges and Considerations

While the GOV.UK Wallet presents several benefits; its success depends on:

• User adoption: Public trust must be earned through clarity and transparency

• Technical accessibility: The service needs to function across various devices and for users with differing digital skills

• Private-sector engagement: Adoption by businesses and institutions is critical for practical utility