The news: GM drivers will be able to start their cars with their phones, per a press release.

Users can store their digital keys for select 2026 and 2027 Cadillac EV models in digital wallets like Apple Pay and Google Pay.

Owners can distribute digital keys with up to seven additional devices via WhatApp, Messages, and AirDrop. 

Connected GM cars will lock and unlock as users approach and walk away with their digital wallet-connected device in their pocket. Users can also regulate their car cabin’s climate control and pop the trunk from their digital wallet.

How we got here: Digital wallets are expanding beyond payments to maximize their utility—and stickiness. 

• Apple Wallet has pushed into tickets, passes, and bill splitting via receipt snapshots. 
• Google Wallet now enables deeper oversight of connected kids accounts and EU digital IDs. 
• And OnePay expanded into auto management with vehicle value, loan equity, payoff timeline, car insurance options, and gas rewards.

Why this matters: Nearly 70% of smartphone users will use a digital wallet this year, per our forecast.

As digital wallet ownership approaches saturation, providers have to find ways to keep their wallets relevant beyond providing payments to secure users’ loyalty.

Implications for payment providers: As digital wallets hold more information and tools to support users’ everyday lives, they have more opportunities to influence consumer behavior. 

Deeper connections to consumers’ cars could be an entry point to own more car-related payments, like tolls, parking meters, and car insurance. 

That could inform strategies for entering other novel use cases and sectors—like health insurance policy cards, which could benefit from wallets’ ability to provide trusted credentials. 

The data that digital wallets collect from consumers across these broader use cases could also help providers generate even more effective offers and rewards from their financial media networks (FMN). 

Go deeper: Read more about the role of digital wallets in consumers’ shopping journey in our Next Era of Payments report.