Wallets Move From Tap to Pay to Permission to Spend

Digital wallets began as a more convenient way to pay. They are now evolving into something more consequential: a platform for managing permissions.

That evolution is becoming visible through two recent developments. Samsung’s launch of Samsung ID with CLEAR allows U.S. passport holders to store TSA-approved digital credentials inside Samsung Wallet. And as PYMNTS reported, Visa and OpenAI announced plans to support payments initiated by artificial intelligence (AI) agents operating under consumer-defined rules and controls.

Viewed separately, one initiative concerns identity and the other payments. Together, they point toward a broader development in digital commerce: identity verification and spending authorization are beginning to reside in the same place.

PYMNTS Intelligence data suggests consumers, particularly younger consumers, are already making digital wallets a regular part of their shopping behavior, paving the path for them to feel comfortable using them for other things. In November, 15% of consumers used a digital wallet for their most recent retail purchase, up 50% from March 2024. Among Gen Z consumers, usage rose to 36% from 15%.

From Payment Tool to Trust Layer

The traditional role of a wallet was one where users stored payment credentials and simplified checkout. But today’s wallets hold boarding passes, loyalty cards, tickets, digital keys and government credentials.

A wallet that can prove who a consumer is occupies a different position in the commerce ecosystem than one that simply stores a card number. Identity credentials are difficult to establish, heavily regulated and tied directly to fraud prevention and security requirements. Once consumers rely on a wallet for identity verification, the relationship becomes more durable.

The trend also aligns with PYMNTS Intelligence findings showing that consumers increasingly use wallets for more than transaction convenience. Wallets have become a gateway to budgeting tools, installment options and other financial management capabilities.

As wallets accumulate more credentials, they become a repository of consumer trust. That trust may prove particularly valuable as AI begins participating in commerce.

Visa’s collaboration with OpenAI provides a glimpse of what that future could look like. The companies said transactions initiated by AI agents will operate within consumer-defined permissions, spending limits, merchant-category restrictions and approval requirements. Tokenized credentials, real-time authorization and fraud monitoring are intended to provide safeguards around those transactions.

AI agents cannot spend money autonomously without access to trusted credentials and clear authorization frameworks.

The result is a convergence of functions that previously operated separately. Identity providers verified individuals. Payment providers authorized transactions. Commerce platforms facilitated purchases. AI agents may now require all three capabilities simultaneously.

For banks, payment networks, merchants and technology providers, this raises questions about where consumer relationships will ultimately reside.

The wallet provider that holds verified identity credentials, payment credentials and consumer permission settings gains a valuable role in the transaction flow. That does not guarantee market dominance. Merchants, issuers, networks and operating systems all retain significant influence. Regulators will also scrutinize how digital identities and AI purchasing systems evolve.

Yet the direction of travel is becoming easier to see.

Digital wallets are no longer defined solely by how consumers pay. They are beginning to define how consumers prove who they are and how they authorize technology to act on their behalf.

In that environment, the companies controlling trusted credentials are positioned to play a larger role in the next phase of digital commerce. The wallet is becoming less of a checkout button and more of a permission platform.