Google and Microsoft have launched the Information Card Foundation (ICF) to jointly develop tools to improve data protection for consumers and businesses.

The partnership, which also involves Novell, Oracle, and PayPal among others, was announced today and will have digital identity cards at its heart.

The organisation intends to support "simpler, more secure and more open digital identity on the internet" via the "virtual wallet", which will provide a visual representation of a personal digital identity. The data can then be shared with online entities.

Users will be able to use multiple cards, manage the card information and give different levels of detail.

“Rather than logging into web sites with usernames and passwords, Information Cards let people ‘click-in’ using a secure digital identity that carries only the specific information needed to enable a transaction,” said Charles Andres, executive director for the Information Card Foundation.

“Businesses will enjoy lower fraud rates, higher affinity with customers, lower risk, and more timely information about their customers and business partners,” he said.

ICF also plans to introduce industry branding across member sites to build consumer awareness of the technology, similar to authentication markers provided by vendor VeriSign.