The “i” in the next iPhone will stand for “identity.” (Cult of Mac)
When people hear rumors and read about Apple’s patents for NFC, they think: “Oh, good, the iPhone will be a digital wallet.” When they hear rumors about fingerprint scanning and remember that Apple bought the leading maker of such scanners, they think: “Oh, good, the iPhone will be more secure.”
But nobody is thinking different about this combination. Everybody is thinking way too small. I believe Apple sees the NFC chip and fingerprint scanner as part of a Grand Strategy: To use the iPhone as the solution to the digital identity problem.
NFC plus biometric security plus bullet-proof encryption deployed at iPhone-scale adds up to the death of passwords, credit cards, security badges, identity theft and waiting in line.
Apple loves to solve huge, hitherto unsolved problems. And there is no problem bigger from a lost-opportunity perspective than digital identity.
The Boston Consulting Group estimates that the total value created through real digital identity is $1 trillion by 2020 in Europe alone.
Read the whole thing. Stripped of the Apple-worship, it’s an astute post.
The link inside the quote above is in the original and the pdf it links to is highly worth a look, as well. From the executive summary…
Increasingly, we are living double lives. There is our physical, everyday existence – and there is our digital identity. Most of us are likely more familiar with that first life than with the second, but as the bits of data about us grow and combine in the digital world – data on who we are, our history, our interests – a surprisingly complete picture of us emerges. What might also be surprising for most consumers is just how accurate and traceable that picture is.
Views on digital identity tend to take one of two extremes: Let organisations do what they need to in order to realise the economic potential of “Big Data,“ or create powerful safeguards to keep private information private. But digital identity can‘t be cast in such black-and-white terms. While consumers voice concern about the use of their data, their behaviours – and their responses to a survey conducted specifically for this report – demonstrate that they are willing, even eager, to share information when they get an appropriate benefit in return. Indeed, as European Commissioner for Justice Viviane Reding remarked, “Personal data is in today‘s world the currency of the digital market. And like any currency it has to be stable and it has to be trustworthy.“ 1 This is a crucial point. Consumers will “spend“ their personal data when the deals – and the conditions – are right. The biggest challenge for all stakeholders is how to establish a trusted flow of this data.
A new type of ID is needed to bind our physical and online selves, payments and hardware. If the tech giants are going to finish off the post office and assume the role of credit card companies, they’re going to have to solve the ID problem. If they solve the ID problem, there’s really no telling how many other business models they can disrupt.