The way individuals access buildings, events, and services is gradually shifting from physical credentials to smartphone-based identity.
Historically, access systems relied on plastic keycards, printed tickets, membership cards, and proprietary mobile apps. However, improvements in Near Field Communication (NFC), mobile wallets, and digital identity infrastructure are enabling credentials to be issued directly to users’ phones.
Rather than focusing on the entire digital identity market, Hillside’s analysis takes a practical view of the segments where mobile credentials are already replacing traditional access tools, including ticketing, membership programs, and building access systems.
This shift is creating a new infrastructure layer that sits between organizations issuing credentials and the devices consumers carry every day.
Market Size
The digital credential ecosystem spans several overlapping industries including digital identity, access control systems, and mobile wallets.
Relevant market segments include:
• Digital identity solutions: estimated at approximately $47bn globally in 2025, projected to exceed $135bn by 2033 as governments and enterprises adopt digital credentials.
• Access control systems: currently valued at roughly $9–10bn globally, with steady growth driven by smart building security and enterprise authentication.
• NFC mobile access credentials: a smaller but rapidly expanding segment expected to grow from ~$1.8bn in 2024 to nearly $9bn by 2033.
Taken together, these segments point to a large and expanding market for infrastructure enabling mobile credentials and digital identity.
However, the most relevant opportunity lies in the software layer that allows organizations to easily issue and manage credentials directly on users’ smartphones.
Market Overview
Several structural trends are accelerating the adoption of mobile credentials.
Smartphone penetration
With billions of smartphones in circulation globally, mobile devices have effectively become the most widely distributed authentication hardware in history.
Contactless infrastructure
NFC readers and QR verification systems are now standard across offices, transportation systems, hospitality venues, and large events.
Security advantages
Mobile credentials provide stronger authentication and encryption than traditional access cards, reducing cloning risks and improving security management.
Consumer expectations
The growth of mobile wallets has normalized storing boarding passes, tickets, and membership credentials on smartphones rather than carrying physical cards.
These shifts are pushing organizations toward mobile-first credential systems that are easier to distribute and manage than traditional hardware-based solutions.
Industry Challenges
Despite strong adoption trends, the market remains fragmented. Common challenges include:
App fragmentation
Many existing access systems require proprietary apps, creating friction for users and limiting adoption.
Legacy infrastructure
Older access control systems often require upgrades before mobile credentials can be supported.
Interoperability
Ticketing systems, building access providers, and loyalty platforms often operate in isolated ecosystems.
As a result, organizations increasingly seek simpler ways to issue credentials directly to users’ phones without requiring additional applications or complex integrations.
What This Means for PassEntry
PassEntry operates within this emerging infrastructure layer that enables organizations to issue secure mobile credentials directly to smartphones.
The platform allows businesses to deliver NFC-based digital passes that function as:
By enabling credentials to be stored directly on users’ phones rather than through standalone apps or physical cards, PassEntry addresses a key friction point within the access control and ticketing ecosystem.
As organizations continue transitioning toward mobile-first access systems, platforms that simplify credential distribution and compatibility across environments are becoming increasingly important.
Key Takeaway
The shift from physical credentials to smartphone-based access is well underway across industries including events, hospitality, enterprise security, and membership programs.
While the broader digital identity market is already measured in the tens of billions of dollars, the software infrastructure enabling mobile credential issuance remains relatively early in its development.
As adoption of mobile wallets, NFC infrastructure, and digital identity systems continues to expand, companies building the infrastructure layer that connects organizations with users’ mobile devices are positioned to benefit from a long-term structural shift in how access and identity are managed.