Digital ID wallets merge with payments as EU shifts fraud liability

Payment industry executive Alpesh Patel argues that as European Digital Identity Wallets arrive by the end of 2026 and Apple and Google place digital IDs beside payment cards, checkout is merging identity, authentication and payment into a single tap. New EU payment rules shift fraud losses onto providers, which pushes the industry toward stronger identity proof, though selective disclosure is meant to limit the personal data shared. The development shows government-backed identity credentials becoming embedded in everyday purchasing, a structural step toward payment access tied to verified identity.