Configuring Adoption in Regulated Digital Identity Ecosystems
M. Lamprinidou (TU Delft - Technology, Policy and Management)
G.A. de Reuver – Mentor (TU Delft - Technology, Policy and Management)
Z. Roosenboom-Kwee – Graduation committee member (TU Delft - Technology, Policy and Management)
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Abstract
The roll-out of digital identity (ID) wallets presents a multi-sided adoption challenge within a complex regulatory and ecosystem landscape. While much attention has been given to technical architectures, less is known about how wallet providers can strategically drive adoption among users and relying parties (RPs). This study addresses the question: What adoption strategies can wallet providers use when introducing digital ID wallets?
Digital ID wallets function as two-sided platforms, where user adoption and RP integration are interdependent. Neither side creates value independently, leading to a “chicken-and-egg” problem, further complicated by regulatory fragmentation and uncertain demand. The European Digital Identity Wallet (EUDIW) exemplifies efforts to establish large-scale, interoperable digital ID systems within a trusted regulatory framework.
The research follows a three-stage design. First, a literature review on platform strategy, digital ID, e-government, and digital wallets identified initial strategy categories. Second, 18 semi-structured interviews with industry stakeholders were analysed using the Gioia methodology. Third, age verification (AV) was examined as a use case to test the framework under regulation-driven conditions.
The study identifies five interdependent strategic domains that must be configured simultaneously to drive adoption. Institutional structuring focuses on navigating regulation, certification, and government involvement. Ecosystem orchestration emphasizes onboarding RPs, which is the primary driver of user exposure and must precede consumer-focused efforts. User enablement addresses adoption drivers, with convenience and usefulness outweighing privacy concerns in most cases. Incentive alignment concerns cost distribution, where free access for users requires RP-based monetization. Trust and legitimacy focus on credibility, where users prioritize ease of use, but RPs require strong compliance guarantees. A sixth domain, structural and market context, captures external factors such as regulatory fragmentation and cultural differences in trust.
A key finding is that adoption depends on the coherent interaction of all domains rather than isolated strategies. Weaknesses in one area limit overall success, making adoption a coordination challenge rather than a single strategic decision.
Applying the framework to age verification shows that while the structure holds, domain importance shifts. Regulation becomes the main driver, ecosystem activation is RP-dependent, and user adoption relies more on normalization. Incentives are limited due to low willingness to pay, making AV a regulation-driven entry point rather than a natural driver of broader adoption.
For wallet providers, the framework highlights key priorities: securing regulatory alignment first, focusing on RP onboarding, offering free user access, selecting high-frequency use cases, and treating trust as an institutional requirement. For consultants, it provides a structured way to diagnose adoption barriers and align stakeholders.
The study contributes to theory by framing adoption as a configurational and institutionally embedded process. It shows that regulation can actively drive adoption, that trust operates differently across stakeholders, and that incentive alignment is a structural mechanism shaping ecosystem participation. Overall, the framework offers both theoretical insights and practical guidance for implementing digital ID wallets.