Beyond the Buzzwords: How Digital Wallets and Microcredentials Are Reshaping Learning and Hiring
Reflections from the Digital Credentials Summit 2025
Attending the recent Digital Credentials Summit in Phoenix was an incredible opportunity to connect with colleagues from around the world and spend three days focused on realising the potential of microcredentials in education and employment. A key theme that emerged was the growing maturity of Learner and Employment Records (LERs) and Digital Wallets—and their role in shaping the future of learning and hiring.
Ian Davidson shared the 2025 SmartReport - A LER Ecosystem Map and highlighted five major paradigm shifts driving this transformation:
From front-loaded education to lifelong learning
From lifelong careers to career lifecycles
From qualification-centric hiring to skills-based hiring
From static paper identity to dynamic digital identity
From centralised verification to decentralised verification
These are a great summary of the simultaneous disruptions that are converging to reshape how we learn and earn and collect evidence of what we know and can do.
The Lego Analogy: Building a Standardised Future
A recurring analogy in discussions about digital credentials, wallets, and LERs is Lego blocks—and for good reason. While we often picture uniform little bricks, Lego actually comes in countless shapes and sizes. The trick is in the shared design standard that allows them to fit together seamlessly.
This principle is critical in microcredentials. While there isn’t a single universal definition, they need to interconnect in ways that benefit learners and employers. If every system, employer, or institution develops credentials in isolation, we risk creating an ecosystem where nothing aligns. As Keith Look from Territorium put it:
“It takes two to be interoperable.”
Breaking Down the Key Components
To build a future where credentials “click” together like Lego, we need to clarify some often confused terms:
CLR (Comprehensive Learner Record)
A digital record capturing a person’s learning achievements across formal education, workplace learning, and skills development. Unlike traditional transcripts, CLRs offer a holistic view of learning and embed comprehensive metadate and Rich Skills Descriptors (RSD). Institutions typically issue one CLR per learner, but employers are also beginning to adopt them. (I wish I had a record of all the leadership and business courses I’ve done over the years!)
LER (Learner and Employment Record)
A portable, verifiable digital record of an individual’s skills, credentials, and work experiences. LERs allow learners and workers to share qualifications with employers, educators, and other institutions. The LER Accelerator Coalition showcased a compelling visual of the transition from paper-based to fully digital credentials.
Digital Wallet
A secure online tool where individuals store and manage their digital credentials, including badges, certificates, and learning records. Digital wallets enable easy sharing with employers, educators, and institutions. LER’s are a form of Digital Wallet.
A great real-world example of a digital wallet is Queensland’s new digital driver’s license. The QLD ID wallet allows users to share only the necessary information—for instance, proving they are over 18 to buy a glass of wine without revealing their full birthdate or name. This principle of user agency and privacy protection is critical for digital credentials.
Credentials
Any documented qualification, skill, or achievement that provides evidence of a person’s knowledge or ability. Credentials come in physical (e.g., a printed degree) or digital forms. They can also be verified or unverified—a printed certificate is physical and poorly verified, whilst a digital credential can be verified when they use secure technology to ensure authenticity of both the earner and the issuer.
Are Resumes Becoming Obsolete?
One of the more thought-provoking discussions revolved around digital wallets replacing traditional resumes, and how fast this was going to happen! AI has transformed hiring, enabling recruiters to scan thousands of resumes in seconds. But job seekers have caught on—many now use AI to generate applications tailored to AI-screened job descriptions. This cycle of AI writing job posts and AI crafting applications has led to diminishing returns.
Verified skill based credentials can change this cycle. Machine-readable, tamper-proof evidence of learning, skills and experience can streamline hiring and restore trust in the process. There are obstacles to scale of adoption and change management is needed across HR professionals and hiring managers but there are already sectors moving to skills based hiring focusing on skills evidence rather than just formal qualifications.
The Path to a Connected Future
The shift from paper-based qualifications to digital, interoperable credentials is underway. However, to fully realise the potential of LERs and digital wallets, we must ensure they work together seamlessly—just like Lego blocks. 1EdTechs standards for Open Badges and CLR’s along with W3C Verifiable Credentials and Digital Identity Standards are underpinning the development of the Credential Lego specifications.
By embracing shared frameworks, we can create a future where skills and learning are recognised, portable, and verifiable across a lifetime of education and employment.
I’d love to hear other thoughts on digital wallets and microcredentials?
Next week I’ll be sharing some insights on Learner Agency in lifelong learning and the credentialling process - another hot topic at the Digital Credential Summit