Mobile wallets have quietly become one of the most useful tools on your phone and not for the reason most people think. In 2025, they’re where your ID lives, your boarding pass shows up, your gym card checks you in,and your event ticket gets scanned. No app installs. No logins. Just tap, show, or swipe.
In this article, we’ll break down what a mobile wallet really is today, how the technology has evolved, and why it’s becoming a go-to channel for customer engagement.
Key Takeaways
- Over 5.2 billion people are expected to use mobile wallets by 2026 (up from 3.4 billion in 2022).
- WWDC 2025 and Google I/O 2025 featured major Wallet updates: digital IDs, passports, auto-passes, and privacy credentials.
- Rapid wallet adoption in India, Latin America, and Southeast Asia fuels global growth.
- Mobile wallets now account for 60% of global e-commerce transactions, the leading payment method worldwide.
What Is a Mobile Wallet?

A mobile wallet is a secure digital feature on smartphones that stores payment cards, ID, travel passes, event tickets, and access credentials. It replaces physical wallets by letting users tap, scan, or show these items directly from their device, enabling fast payments, easy check-ins, and contactless access across retail, transit, and everyday life.
Three of the most widely used mobile wallets are Apple Wallet, Google Wallet, and Samsung Wallet. These apps come pre-installed on most devices and support everything from airline check-ins to gym memberships, automatically surfacing the right pass based on time, location, or user activity.
How Mobile Wallets Work on Your Phone
Mobile wallets store digital items like ID cards, travel passes, and payment methods securely on your device. They use on-device encryption and secure hardware (like Apple’s Secure Enclave or Android’s Keystore) to protect sensitive data.
Features such as NFC enable tap-to-pay or access control, while QR codes and geofencing allow wallets to surface the right pass automatically, based on location, time, or user activity.
How Mobile Wallets Differ from Digital Wallets (E-Wallets)
Mobile wallets like Apple Wallet and Google Wallet are built into your smartphone’s operating system and used in physical settings, like scanning a boarding pass at the airport or tapping into transit.
Digital Wallets also called e-wallets, like PayPal or Venmo, focus on storing money and handling online payments. Mobile wallets are built for real-world access, they store passes, credentials, keys, and cards you use on the go, not just for sending money.
To explore how the two leading platforms compare and how businesses can benefit from adopting mobile wallet solutions, take a look at Apple Wallet vs Google Wallet and Top 9 Benefits of Mobile Wallets for Businesses. If you’re ready to build your own, see our guide on how to create a mobile wallet pass.
What Can You Store in a Mobile Wallet?
Mobile wallets aren’t just for payments, they’re digital containers for the credentials and passes you use daily. From boarding a plane to unlocking your car, these wallets store more than just cards. Here’s what they now support natively on most devices.
Digital IDs and Driver’s Licenses

Many states and countries now support digital driver’s licenses and national IDs inside mobile wallets. These credentials can be used for age verification, airport security, and law enforcement stops, all without a physical card.
As of 2025, Apple Wallet supports digital IDs in over 10 U.S. states including Arizona and Maryland, with expansion across the EU underway. Data is stored using on-device encryption and verified through biometrics like Face ID or fingerprint.
Digital Boarding Passes and Travel Credentials

Public transportation systems now issue digital transit cards, rail passes, and boarding passes directly through Apple Wallet and Google Wallet.
In cities like London, San Francisco, and Tokyo, commuters can tap to enter stations using NFC and receive real-time updates on gate or departure changes. Wallet passes auto-update if trip details shift, eliminating paper entirely.
Event Tickets, Loyalty Cards, and Coupons

Concert venues, sports stadiums, and conferences default to wallet-based tickets that scan on arrival. Brands use mobile wallets to show live loyalty point balances, rewards, and member tiers.
Retailers push geo-triggered coupons that appear when users are near a store, redeemable with a single tap, no app or code needed.
Smart Keys – Car, Home, Hotel, and Office
Mobile wallets now store secure digital keys for vehicles, hotel rooms, apartments, and coworking spaces.
Apple Wallet supports car keys for brands like BMW and Hyundai, while hotel chains like Hyatt issue digital room keys via wallet. Keys are time-restricted, remotely revokable, and often powered by NFC or UWB for tapless entry.
What Technology Do Mobile Wallets Use?

Mobile wallets rely on a core set of technologies to make digital passes and payments secure and interactive. Near Field Communication (NFC) is the primary method for both contactless payments and ‘tap-to-redeem’ interactions with passes at terminals. For universal compatibility, QR codes and barcodes are used to initiate payments or to allow any smartphone with a camera to scan and store a pass.
To make passes context-aware, geofencing triggers lock screen alerts based on location, while push notifications deliver real-time updates like new loyalty points. Underlying both payments and passes is tokenization, a security process that protects sensitive card details by replacing them with a unique digital identifier.
Near Field Communication (NFC)
NFC is a short-range wireless technology that enables two devices to communicate when they are held just a few centimeters apart. It works by creating a small radio frequency field between an active device (like a smartphone) and another NFC target (like a payment terminal or a smart poster). This proximity-based “handshake” is what makes NFC both convenient and highly secure.
In mobile wallets, NFC is the engine behind all “tap-to-interact” functions. Its primary uses are:
- Contactless Payments: This is the most common use case. When you tap your phone at a checkout terminal, NFC securely transmits tokenized payment information to complete the transaction without needing a physical card.
- Pass Redemption & Validation: Beyond payments, NFC is used to redeem coupons, check in for flights, validate event tickets, and open hotel or office doors with a simple tap of a phone, replacing the need to scan a barcode.
- Initiating Connections: It can also be used to instantly share information or pair with other devices. For example, tapping an NFC-enabled business card can automatically add a contact to your phone.
Because the connection only works over an extremely short distance, it prevents accidental interactions and is a key feature in the security of mobile wallets.
Qr Codes & Barcodes
QR (Quick Response) codes and traditional barcodes are optical, scannable codes that serve as the most universal and accessible technology for mobile wallet interactions. Unlike NFC, which requires specific hardware, any smartphone with a camera can read a QR code or barcode, ensuring maximum compatibility across all devices and users.
In the mobile wallet ecosystem, they fulfill two primary roles:
- Pass Distribution: This is the most common way to deliver a pass to a customer. A user can scan a QR code from a website, a marketing email, or a physical poster in a store, and their phone will instantly recognize it and prompt them to add the corresponding pass to their wallet.
- Pass Redemption & Validation: For redemption, the unique barcode or QR code is displayed on the screen of the user’s phone. The business then uses a standard scanner to validate the pass, whether it’s to apply a coupon, check in for an event, or earn loyalty points. This method is reliable, fast, and requires no special hardware for the business beyond a typical point-of-sale scanner.
This simplicity and broad compatibility make QR codes and barcodes an ideal solution for businesses looking to scale their mobile wallet strategy quickly and cost-effectively.
Geofencing & Beacons
Geofencing and beacon technology allow mobile wallet passes to become context-aware, delivering timely and relevant interactions based on a user’s real-world location.
Geofencing uses GPS or cellular data to create a virtual boundary around a physical location—such as a store, stadium, or airport gate. When a user with a relevant mobile wallet pass enters or exits this boundary, the wallet app can trigger a lock screen notification. For example, a loyalty card might surface when the customer walks into a retail store.
Beacons, on the other hand, use Bluetooth Low Energy (BLE) to detect nearby smartphones with greater precision indoors. They’re ideal for triggering passes in specific zones like a particular store aisle or event check-in area where GPS may not be accurate.
Together, these technologies enhance user engagement by delivering relevant offers, reminders, or entry prompts at the exact moment a user needs them without requiring them to open an app.
Push Notifications
Push notifications are one of the most powerful features of mobile wallet passes, enabling real-time, direct communication with users without the need for a separate mobile app.
Unlike traditional apps, mobile wallet passes can trigger native lock screen notifications when something changes on the pass or when the user enters a relevant location (via geofencing or beacons). For example:
- A loyalty card can notify the customer when they’ve earned a new reward.
- A boarding pass can update the gate number and alert the traveler.
- An event ticket can surface with a check-in reminder an hour before the show starts.
These notifications are handled by the wallet app (Apple Wallet or Google Wallet), making them highly visible and less likely to be ignored than email or SMS. Because they’re pass-specific and triggered by context or updates, they deliver high engagement without spamming the user.
Encryption and Biometrics
Mobile wallets are built on a foundation of strong security, with encryption and biometrics working together to protect user data and prevent unauthorized access.
Encryption ensures that sensitive information like payment details or personal data stored on a pass is encoded during transmission and storage. When a mobile wallet sends information (e.g. during a payment or pass validation), it uses industry-standard protocols like TLS and tokenization, which replaces card details with a secure, single-use token.
Biometric authentication, such as Face ID, Touch ID, or fingerprint scanning, adds an extra layer of protection. Before a user can access their wallet or authorize a transaction, the device verifies their identity using built-in biometric sensors. This makes it extremely difficult for anyone else to use the wallet, even if the phone is lost or stolen.
What’s New in Apple Wallet (WWDC Event)
Apple’s WWDC update significantly upgrades Wallet functionality especially around identity, travel, and real-world verification. These changes reflect a shift toward smarter, more secure user credentials, and open up new business applications for digital passes.
Digital IDs, Passports, and Verification
Apple is positioning Wallet as a secure identity platform for both digital travel credentials and age or identity verification in real-world and online settings:
U.S. Passport support at TSA: Apple Wallet now lets users store a digital version of their U.S. passport. While limited to select TSA checkpoints and not valid for international travel, it streamlines domestic airport ID checks.
Digital driver’s licenses and state IDs: Available in more U.S. states including Arizona, Maryland, Georgia, and Colorado. These Wallet-stored IDs are protected with Face ID or Touch ID and accepted by TSA and some DMV services.
Verify with Wallet on the web: Websites can now prompt users to verify their age or identity using their stored digital ID removing the need for document uploads or selfie scans. Useful for alcohol delivery, banking, and age-restricted services.
Merchant ID Verifier API: A new API allows physical merchants to verify someone’s ID directly from their iPhone, no extra hardware needed. This is ideal for retail, car rentals, hospitality, and event check-ins.
These updates shift mobile wallets into verified identity territory ideal for businesses building secure access passes, age-gated loyalty tiers, or verified event credentials. Digital IDs aren’t just stored, they’re now actionable inside Wallet.
Smart Tickets and Event Support
Apple Wallet’s ticketing features in WWDC make it easier for users to manage trips and events in one place:
Redesigned boarding passes with Live Activities: Boarding passes now update in real time on the Lock Screen with Live Activities. Users see departure times, gate changes, and delays without opening an app. Flight status can also be shared with friends or family.
Airport maps and baggage tracking: Users can view terminal layouts directly from their boarding pass and quickly access the Find My app to track checked bags via AirTag.
Multi-event ticket support: Wallet now supports passes that contain multiple entries, useful for sports season tickets, conferences, or festivals. Each event can include its own session details or venue info.
Live suggestions for related services: Event passes can now display additional options like parking access, seat upgrades, or local recommendations based on the context of the pass.
Apple Wallet is now built to handle the full event experience before, during, and after, without the need for extra apps or manual check-ins.
Automatic Order Tracking in Wallet
Apple Wallet in iOS 26 now supports automatic order tracking, powered by Apple Intelligence. When enabled, iOS scans your Mail app for shipping and delivery emails from retailers or couriers.
It extracts relevant details such as order number, delivery status, and estimated arrival and displays them in a new Order Tracking section within Wallet.
This functionality works for a wide range of merchants, not just those that support Apple Pay, and allows users to check delivery updates directly from their Lock Screen without needing to open emails or install additional apps.
New Apple Pay and Payment Features
iOS 26 introduces Tap to Cash, a peer-to-peer payment feature that lets users send or receive Apple Cash by holding two iPhones together. No contact info is needed, just proximity and Face ID or Touch ID to confirm the transfer.
Apple Pay now supports rewards and installment payments during checkout. Users with eligible cards can apply loyalty points or split purchases into payment plans directly within Wallet. Additionally, Apple Pay is now compatible with desktop browsers like Chrome, Edge, and Firefox, users complete the payment by scanning a code with their iPhone.
Wallet’s preauthorized payments view now shows richer details for subscriptions and recurring charges, including branding and billing terms. Apple also updated FinanceKit, enabling finance apps to access Wallet data like balances and transactions (with user permission) to provide real-time insights.
What’s New in Google Wallet (I/O)

Google Wallet’s 2025 update brings expanded ID support, smarter ticketing, improved payment flows, and broader availability across global markets.
Digital IDs, Privacy, and Verification
Google Wallet is evolving beyond a payment tool into a secure platform for verified identity. In 2025, it added support for four more U.S. regions Arkansas, Montana, Puerto Rico, and West Virginia joining Arizona, Georgia, Maryland, and New Mexico. Users in these areas can now add official state IDs to Wallet, usable at TSA checkpoints and some DMV services.
In the UK, Google introduced early-stage digital passport support, enabling verification for railcard eligibility and other age-restricted checks. Broader use cases are expected as adoption increases.
To improve privacy during online verification, Google is also rolling out Zero-Knowledge Proof (ZKP) technology. This allows users to confirm specific attributes like being over 18 without revealing their exact birthdate or full ID details.
This approach keeps personal data private while satisfying age or identity requirements, and Google has committed to open-sourcing the technology for wider developer adoption
Travel Credentials and Transit Passes
Google Wallet now supports real-time transit updates in India (Indian Railways) and Canada (Via Rail). When a transit ticket is added, Wallet displays live status information such as “On time,” “Delayed,” departure times, and estimated arrival directly within the pass.
These updates are powered by Google Maps and appear automatically for users with active tickets. Additionally, new APIs allow transit operators and developers to enable transit pass purchases directly within Wallet, tied to tokenized payment cards for faster, more secure checkout.
For air travel, boarding passes are now added automatically to Wallet after check-in when airlines use the latest Wallet API. Related passes such as parking or lounge access, can be linked to the boarding pass to streamline the full travel experience.
On Wear OS smartwatches, Wallet supports express transit, allowing users to tap and pay for rides even when the screen is off and the Wallet app isn’t open, as long as the watch is unlocked.
Smart Notifications, Global Reach & Payments
Google Wallet now delivers smarter alerts, cleaner payment flows, and wider international coverage.
Contextual Alerts & Notifications: Wallet now triggers location-based notifications when users approach places like transit hubs, airports, or venues. Field-level alerts such as gate changes or loyalty point updates also appear in real time, improving pass relevance.
Updated Payment Interface & PayPal Changes: Google has redesigned the Wallet pay sheet with richer visuals and dark mode. As of June 13, 2025, PayPal accounts will no longer be supported as a funding source in the U.S., though PayPal debit cards will still work.
Global Availability & App Stability: Google Wallet now supports passes in 50+ new countries. Even in regions without NFC, users can store and view passes. Background improvements to speed, reliability, and crash recovery are also being rolled out.
Family Wallets and Credential APIs
Google Wallet now supports supervised access for families. Parents can issue digital passes or payment cards to their children and manage them through Family Link. This includes real-time controls such as purchase approvals, pass sharing, and notifications, available in the U.S., UK, Australia, Spain, and Poland.
The Verifiable Credentials API lets third-party apps request official documents like licenses, memberships, or educational credentials. Built on W3C standards (including OpenID4VP and VCI), it enables secure, consent-based identity sharing directly from Wallet.
Users can also personalize Wallet passes with private images such as profile photos or ID card likenesses that are stored securely and only visible to the account holder. This feature adds another layer of trust and identification for credentials shared digitally.
How Businesses Use Mobile Wallets Today

Mobile wallets have been a valuable channel for businesses for years enabling everything from loyalty cards and event tickets to boarding passes and coupons. What’s changed with the latest Apple and Google updates isn’t the core value, but the scope.
With stronger identity features, richer content, and smarter automation, wallets are becoming even more capable, reinforcing their role as a go-to touchpoint for real-time, high-intent customer engagement. For brands already using wallet passes, these upgrades unlock new possibilities. For those not yet invested, they raise the cost of staying on the sidelines.
Key Business Use Cases
Use Case | What It Looks Like in the Wallet | Business Impact |
Loyalty cards & rewards | Points balance, tier status, and personalized offers update automatically. | Higher repeat-purchase rates; no forgotten cards. |
Event tickets & check-ins | Ticket surfaces on event day with seat, gate, or QR code ready to scan. | Faster entry, less fraud, lower printing costs. |
Coupons & promotions | Time- or geo-triggered offers appear when shoppers are near a store. | Substantially higher redemption vs. email/paper. |
ID verification & access | Digital IDs, hotel keys, or gym passes unlock doors or prove age in seconds. | Removes plastic cards and dedicated hardware. |
Gift Cards | Balance, brand, and barcode ready to redeem with a scan. | Drives repeat visits and keeps your brand top-of-wallet. |
Benefits Over Traditional Channels

Mobile wallet passes outperform traditional engagement channels like email, apps, or paper by eliminating friction and staying constantly visible. They don’t ask users to opt in, download anything, or remember credentials. With a single tap, a pass is added and from that point forward, it becomes an always-available, self-updating asset on the user’s device.
Passes are accessed more frequently than most branded apps or emails, especially when they’re tied to real-world context like location or timing. Offers surface near stores, tickets update when events change, and loyalty cards reflect points in real time all without the customer needing to do anything.
Unlike an email that gets buried or an app that sits unopened, a wallet pass remains just one swipe away. It’s not just more convenient, it’s persistently visible, relevant in the moment, and requires zero effort to engage with. That’s why businesses are increasingly treating it as a primary channel, not an accessory.
Industries Leading Adoption
Sector | Typical Wallet Deployments | Why It Works |
Retail & eCommerce | Loyalty cards, coupons, digital receipts. | Drives in-store traffic and repeat sales. |
Travel & Hospitality | Boarding passes, hotel room keys, itineraries. | Reduces check-in lines and paper clutter. |
Events & Entertainment | Mobile tickets, VIP passes, seat upgrades. | Cuts fraud, speeds entry, opens upsell paths. |
Healthcare & Education | Digital ID badges, test results, appointment reminders. | Secure, contact-free, always accessible. |
While these industries are setting the pace, mobile wallet adoption is expanding into adjacent sectors like transportation, fitness, coworking, and even government services. What they all share is the need to deliver real-time, credentialed access with minimal friction, something wallet passes now do better than most apps or legacy systems.