Last year, former Google CEO Eric Schmidt dropped this truth bomb:

“User interfaces are largely going to go away.” Translation? The era of apps is fading fast, replaced by natural language, AI, wearables and sensors. It’s not just about devices anymore; it’s about seamless experiences. For many, smartphones have already replaced cameras, cards, tickets and season passes. So what’s next? In June 2025 Apple announced wallet upgrades in iOS 26: government-issued IDs stored right in your phone.

As of late 2025, Apple is launching Digital ID for US users. It lets them create an ID from their US passport and present it securely from their iPhone or Apple Watch. Starting with checkpoints at more than 250 US airports, it’s a beta test for a future where your physical wallet is obsolete – more secure, more private, less bulky.

LINK, which runs the UK ATM network, reports that fewer than half of us now leave home with a wallet or purse. Only a third of 18-24-year-olds even carry one. The other two thirds prefer digital wallets, with just one sixth relying on chip and PIN or contactless cards as their primary payment method. We are seeing a generational shift.

The Bank of England is watching this trend closely, wondering what it means for “wallet-less” Brits needing cash and whether ATMs should take contactless withdrawals from Apple or Google wallets.

What we’re seeing is innovation that enables the sharing of only the information that’s needed. This means privacy-enhancing digital credentials that prove just the essentials (i.e. for certain transactions where age is an issue, such as signing a contract and buying alcohol, or that you have a valid ticket or hold a driver’s licence) without revealing everything. Apple’s Verify with Wallet feature does this, without handing over personal data to third parties.

In the background this approach relies on a branch of cryptography that can deliver Zero-Knowledge Proofs (ZKPs). Ignoring the ugly acronym, ZKPs really stands for proving something is true without spilling any more info. It’s a bit like saying “I’m over 18” instead of “I’m 75 years and 3 months old”. 

The EU Digital Identity Wallet launches in 2026 and will use ZKPs. And Google is open-sourcing their ZKP tools too, making it easier to build these privacy-first wallets across Europe and beyond.

In a world of wallets with strong authentication and verifiable credentials with selective disclosure, the banking industry can provide individuals and firms with UK-based security and privacy, with no need to trade off one against the other.

As the transition from analogue to digital accelerates with the addition of basic AI and the changing landscape of digital money, digital wallets will make smart choices about whether to use coupons and points – and which payment types are best and what kinds of rewards or access to what credit lines work well.

It’s a big step towards achieving Schmidt’s vision. 

Visit our Payments Hub today for more insights on the future of payments or speak with our team to learn more about how you can prepare.