Why Big Tech Is Investing in Digital Credentials

Digital credentials are changing how identity and verification work online. They provide a tamper evident, cryptographically secure way to prove skills, qualifications, and achievements. Unlike traditional documents, digital credentials are instantly verifiable, reducing time and costs associated with background checks.

Big Tech sees the potential. Companies like Amazon, Apple, and Google are integrating digital identity solutions into their ecosystems, making digital credentials a core part of their services.

Defining Digital Credentials and Their Importance

A digital credential is an electronic document containing verified claims about an individual. It can represent anything from a university degree to a professional certification.

Unlike paper based credentials, digital versions use cryptographic signatures to prevent forgery. They enable fast, reliable verification, reducing fraud and administrative overhead. Employers, educators, and financial institutions can instantly confirm qualifications without manual checks.

This shift is making identity verification faster, cheaper, and more secure.

The Role of Big Tech in Driving Adoption

Amazon, Apple, and Google are shaping the future of digital identity. With their global reach and advanced technology, they can roll out digital credentials at scale.

Amazon has been actively expanding into digital identity. It supports mobile driver's licenses (mDLs) and has plans for EU Digital ID wallets for certain types of authentication and is building infrastructure for identity verification services. With AWS Marketplace, it offers third-party identity solutions to businesses running on AWS, further embedding digital credentials into everyday transactions.

Apple's investment goes beyond just the mobile driver's license in Wallet. Their commitment to digital identity now extends to passkeys, eliminating passwords across their ecosystem and pushing FIDO standards industry-wide. This strategic move positions Apple as a central player in both consumer and enterprise identity verification.

Microsoft has evolved their Entra Verified ID platform from early blockchain experiments to a comprehensive business identity solution. Their recent integration with Azure Active Directory shows they're connecting decentralised credentials to their core enterprise offerings, creating a bridge between traditional and next-generation identity systems.

Google's approach combines their Android platform capabilities with their influence in digital identity standards. Their leadership in the OpenID Foundation and implementation of passkeys across Chrome and Android demonstrates their strategic positioning across both consumer and developer ecosystems.

Big Tech's advantage isn't just technology, it's reach. Hundreds of millions of users already rely on their platforms for financial transactions, authentication, and commerce. Adding digital credentials is a natural next step.

Advantages of Big Tech’s Approach

Big Tech companies have several advantages over traditional institutions when deploying digital credentials:

• Massive user bases – Millions already use their ecosystems, making adoption seamless.
• No legacy constraints – Unlike banks or government agencies, tech companies can rapidly innovate without outdated systems slowing them down.
• Seamless user experiences – Tech giants prioritise frictionless interactions, ensuring digital credentials integrate smoothly into daily life.
• Data-driven personalisation – With deep insights into user behaviour, Big Tech can optimise digital ID solutions to improve usability.

These factors position them ahead of traditional players in shaping digital identity’s future.

The True Value Proposition Goes Beyond Authentication

Big tech's interest in digital credentials extends well beyond simply replacing passwords:

• Data Minimisation as a Feature -These companies recognise that privacy is becoming a market differentiator. Verifiable credentials allow them to offer services that require less personal data storage, reducing compliance burdens while marketing privacy as a feature.
• Trust Infrastructure - By building credential ecosystems, big tech is creating trust infrastructure that can support new business models. The ability to verify attributes without storing sensitive data opens possibilities for more secure and efficient digital interactions.
• Reducing Friction While Increasing Security - The seemingly contradictory goals of better security and improved user experience are reconciled through digital credentials, addressing a long-standing challenge in digital services.

Implications for Security and Privacy Compliance

Handling digital credentials at scale requires strong security and compliance with data protection laws.

Big Tech companies must implement:

• Secure storage and access controls – Sensitive credentials must be protected against unauthorised access.
• Clear data usage policies – Users should know how their credentials are stored, shared, and used.
• Privacy-first architecture – Decentralised identity models reduce the risk of centralised data breaches.
• Cloud security solutions – Cloud platforms like AWS and Google Cloud offer robust infrastructure to safeguard verifiable credentials.

Regulators are paying attention. Compliance with GDPR, CCPA, and emerging digital identity laws is essential to maintaining user trust.

What This Means for Enterprise Strategy

For businesses watching these developments, the implications are significant:

• Interoperability Will Be Critical - As big tech builds out these systems, organisations should prioritise solutions that work across multiple credential formats and identity wallets. The days of siloed identity systems are numbered.
• Employee and Customer Identities Are Converging -The line between workforce and customer identity is blurring. The same credentials that authenticate employees could soon verify customers, creating opportunities for unified identity approaches.
• First-Mover Advantage - Organisations that build digital credential capabilities now will be better positioned to integrate with big tech's ecosystems as they mature, potentially gaining competitive advantages in customer experience and operational efficiency.

Collaborating with Stakeholders to Drive Standardisation

For digital credentials to be widely adopted, they must be interoperable across industries and regions.

This requires collaboration between:

• Educational institutions – Universities and training providers must issue recognised digital credentials.
• Professional organisations – Certifications and licenses should be verifiable in a standardised format.
• Industry partners – Companies must align on frameworks that allow credentials to be used across platforms.
• Regulators – Policymakers play a key role in shaping laws that balance innovation with security.

Without these efforts, fragmented systems could limit adoption and usability.

Potential for Transforming Verification Processes

Digital credentials offer a better way to verify identity and qualifications.

• Instant verification – No more manual background checks. Credentials can be validated in seconds.
• Portable and reusable – Users control their credentials and can share them securely as needed.
• Lifelong learning and career mobility – Credentials update over time, creating a verifiable record of skills and achievements.

The impact extends beyond hiring. Digital credentials can streamline customer onboarding, financial applications, and travel security.

Preparing for the Credential Economy

The investments by big tech signal the emergence of what we might call a "credential economy" – where verified digital claims become a form of currency in digital interactions.

his shift has several implications:

• Credential Governance - Organisations will need clear policies about which credentials they'll accept, from which issuers, and for what purposes. This governance layer will be as important as the technical implementation.
• Value Exchange - As credentials gain importance, there will be new models for exchanging value. Companies may offer incentives for sharing certain verified data, creating new types of digital relationships.
• Industry Collaboration - No single organisation – not even big tech – can build this ecosystem alone. Industry consortia, standards bodies, and public-private partnerships will shape how credentials evolve.

Final Thoughts

Big Tech is betting on digital credentials as the next evolution of online identity.

Amazon, Google, and Apple are integrating them into their services, accelerating mainstream adoption.

The shift to digital identity will improve security, reduce fraud, and make verification seamless. But privacy, interoperability, and compliance remain key challenges.

The question isn't whether digital credentials will transform identity verification, but how quickly and on whose terms. Will your organisation be a passive recipient of big tech's credential infrastructure, or will you help shape this transformation?

As digital credentials become standard, businesses and individuals must prepare for a future where identity is secure, portable, and instantly verifiable. Start by evaluating your current identity processes to understand where verifiable credentials could reduce friction, enhance security, or enable new services. The organisations that understand their credential needs today will be better positioned to navigate the changing landscape tomorrow.

Contact Vidos to discuss how your organisation can prepare for the credential economy →