Web3 Wallets Add Payment and Identity Features

🧠 Web3 Wallets Evolve Beyond Storage — Identity + Payments

Web3 wallets are rapidly evolving from simple key-storage tools into identity-centric payment hubs that make on-chain transactions easier, more human-friendly, and safer. These developments are happening through real integrations between wallet apps and decentralized identity systems, which link human-readable identifiers to wallet addresses and payment flows.

📌 1. Human-Readable Identity IDs Make Payments Easier

🔹 SPACE ID & Payment ID

SPACE ID, a decentralized digital identity platform, has launched something called Payment ID, which lets users send crypto by using simple, human-readable identifiers (like alice@binance) instead of long hex wallet addresses. These Payment IDs resolve to the correct deposit addresses across multiple chains and centralized exchanges — eliminating common address errors and making payments feel more like normal apps.

PR Newswire

Enkrypt Wallet (built by the MyEtherWallet team) integrated SPACE ID’s Payment ID so that wallet users can send and receive funds using these readable names across chains and platforms, improving usability significantly.

PR Newswire

This shift turns what used to be raw blockchain address interactions into something much closer to traditional payment UX (e.g., sending to a name instead of a long alphanumeric address).

blog.enkrypt.com

📌 2. Wallets Are Becoming Identity Gateways

🔹 Identity + Multi-Chain Interaction

Modern wallet projects increasingly integrate decentralized identity features — not just for payments, but also for profile and access. For example:

SPACE ID’s domains and identifiers can be stored and used across multiple wallets and chains.

OKX

This means your wallet isn’t just a secure key container — it becomes your digital identity anchor (a core piece of who you are on Web3 and how payments find you).

OKX

Such identity layers help bridge the gap between traditional web experiences (like usernames or email addresses) and Web3’s cryptographic wallet world, lowering barriers for mainstream users.

docs.space.id

📌 3. Payments & UX Are Becoming Closely Linked

🔹 Simplifying Crypto Transfers

With solutions like Payment ID, users no longer need to copy-paste lengthy addresses or worry about chain mismatches.

This functionality is rapidly being adopted by major wallets (e.g., Enkrypt, MetaMask via “snap”, and in future Binance integrations) — which directly embed identity into payment flows.

PR Newswire

This effectively merges identity and payments — making crypto transactions safer and much more intuitive.

PR Newswire

💡 Why This Trend Matters

🌍 Better UX = Wider Adoption

Human-readable identifiers reduce user mistakes (like sending funds to the wrong address) and feel familiar, which can help onboard non-crypto users faster.

PR Newswire

🔐 Identity + Security

Linking identity to wallets through secure, cryptographic systems (such as zero-knowledge auth used by Payment ID) improves security and trust without sacrificing decentralization.

docs.space.id

💸 Payments Flow Like Web2 Apps

The goal is to reshape payments into something as easy as sending a message or email — a big step toward mainstream Web3 adoption.