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Linux Foundation Europe forms OpenWallet Foundation

Friday 24 February 2023 11:03 CET | News

Linux Foundation Europe has announced the formation of OpenWallet Foundation (OWF) to develop open-source software for interoperability support of wallet use cases.

 

OpenWallet Foundation is a collaborative effort that aims to enable trust in the digital future and is looking to do so by developing open-source software to support interoperability for an extensive range of wallet use cases, such as making payments, proving identity, and storing validated credentials like employment, education, financial standing, and entitlements.

A diverse ecosystem of global technology, finance, and university leaders have joined as the first OpenWallet Foundation members, with more expected in the future. Inaugural Premier members that sponsor the OWF are Accenture, Gen, Futurewei, and Visa, joined by general members such as American Express, Deutsche Telekom / T-Systems, IDnow, and Ping Identity, to name a few. The foundation currently includes an additional 20 non-profits, academic, and government entities.

OpenWallet Foundation and what it entails

Based on the information provided in the press release, the OWF is not set to publish a wallet, provide credentials, or create new standards, but aims to have its open-source software become the core leveraged by other organisations and companies to develop their own digital wallets. The wallets are set to seek feature parity with available wallets, as well as interoperability with cross-border projects of the likes of the EU’s Digital Identity Wallet.

Linux Foundation Europe has announced the formation of OpenWallet Foundation to develop open source software for interoperability support of wallet use cases.

Daniel Goldscheider, Founder of the OpenWallet Foundation advised that wallets are seen as critical infrastructure for payments, identity, and secure access alike, and they believe open source driven by this collaboration to be a ‘great’ model for infrastructure that is required in digital societies and benefits everyone. Having open source as the basis of wallets, as it is with web browsers, enables anyone to build a digital wallet that works with others and provides consumers with the freedom to maintain their identity and verifiable credentials and share relevant data whenever, wherever and with whomever they choose.

As the OWF consists of a diverse member base, it highlights the importance of an open foundation to support a multitude of digital wallets to have consistency, interoperability, and portability ensured, and have consumer privacy protected. Gabriele Columbro, general manager of Linux Foundation Europe stated that the world had a need for digital assets storage, and they believe the foundation has the potential of redefining the credential landscape globally and creating an improved digital experience, together with new market opportunities. As the EU has been at the forefront of data privacy and consumer protection, efforts such as OWF are believed to provide a concrete opportunity for policymakers to switch their engagement and enable a constant and transparent feedback cycle between regulations and regulated technology.

OWF launch context

As per the press release, the OWF follows another project hosted by Linux Foundation Europe, the November 2022 added Project Sylva aimed at creating an open-source telco cloud software framework. Together with the OWF launch is also the OWF – Linux Foundation Research collaboration report, Why the World Needs an Open Source Digital Wallet Right Now, which highlights the following: 
  • For ecommerce and point-of-sale retail, digital wallets are the most prevalent payment method throughout the globe, with the digital wallet transactions value in 2021 having reached USD 15.9 trillion.

  • Hundreds of digital wallets are available but are cumbered with a host of problems like vendor lock-in, lack of interoperability, problematic security, and limited capabilities.

  • New wallets are underway, but if not synced, each country and organisation issuing credentials could become a ‘walled garden’, with IDs and wallets from elsewhere not functioning and disrupting travel, international students, and mobile workforces.

  • Multiple wallets are set to be present in the future, which highlights the need for a ‘world-class’ wallet engine to ensure built-in interoperability.


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Keywords: partnership, e-wallet, digital wallet, digitalisation, SaaS, digital identity, payments , online security, financial services, payments infrastructure, fintech, ecommerce, cross-border logistics, compliance
Categories: Payments & Commerce
Companies: Linux Foundation Europe, OpenWallet Foundation
Countries: Europe
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Payments & Commerce

Linux Foundation Europe

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OpenWallet Foundation

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