Apple introduced digital California identity cards and driver’s licenses for iPhones today, making it more convenient to present these digital IDs. However, they are currently only accepted at certain airports and a limited number of businesses that sell age-restricted products, such as alcohol, tobacco, fireworks, or firearms. Despite obtaining a digital ID, drivers are still legally required to carry their physical licenses, as digital IDs cannot be used at Department of Motor Vehicles (DMV) offices. The DMV only accepts them through an app online. In the near future, digital IDs are expected to gain broader acceptance across both government and private sectors, with plans for sales terminals to facilitate their use in more stores and by various California state agencies. Additionally, the Biden administration is encouraging federal adoption of digital IDs. These digital IDs are also applicable for online use; for instance, Apple allowed age verification for services like rental car company Turo last year, and Google’s Chrome browser recently began testing its Digital Credential API for identity verification.

Previously, Californians could use digital IDs on smartphones, but it required additional software. Last year, the state launched the California DMV Wallet app for both Apple and Google devices as part of its digital ID initiative, which aims to align with federal standards for remote identity verification. This includes plans to integrate with Login.gov, an identity and sign-on service used by over 50 federal agencies, including the IRS and Department of Homeland Security. The Biden administration is reportedly working on an executive order to facilitate this integration, prompting more states to adopt digital IDs while requiring all federal agencies to utilize Login.gov. Neither Apple nor Google commented on their involvement in the discussions surrounding this executive order.

Currently, digital ID adoption is limited, with the California DMV being the sole state agency accepting mobile IDs—specifically in a digital format. The only federal agency that accepts them is the Transportation Security Administration (TSA) at around 25 airports nationwide, including Los Angeles and San Francisco international airports. Gordon, a former tech executive who managed DMV modernization during the COVID-19 pandemic, expressed hope that a state-level agency would start accepting these IDs.

The California Department of Technology, responsible for developing the digital ID strategy, is working to incorporate this system with state services, such as transit discounts and eligibility checks for programs like CalFresh and veteran services. The goal, according to spokesperson Bob Andosca, is to encourage all state agencies to adopt digital IDs, allowing Californians to access various state services through a single digital ID system. Digital IDs can enhance access to government services and potentially reduce reliance on private tech companies, which may lessen dependence on artificial intelligence tools.

An analysis by the Electronic Privacy Information Center revealed that approximately half of the AI contracts signed by state agencies are for fraud detection. A prominent example involved the California Employment Development Department, which mistakenly denied benefits to around 600,000 individuals due to AI misidentifying their claims as fraudulent. Digital IDs can help agencies confirm the identities of individuals applying for benefits online, potentially reducing the need for fraud detection systems like the one used by EDD.

State-issued IDs for iPhones were first launched in 2021 and are currently available in several states, including Arizona, Colorado, Georgia, Hawaii, Maryland, and Ohio. The program is expanding to eight additional states and will reach Japan next year, marking the first international rollout.

Apple and state officials aimed to simplify the process of adding a digital ID to an iPhone. Users can launch the Wallet app, tap the plus button, and take pictures of their physical ID. They then perform facial movements to enable the phone to match their face with the ID photo. After the phone’s facial matching, users are prompted to take a selfie, which is encrypted and sent to the DMV for facial recognition against a database of ID photos. The state also receives a fraud score from Apple based on the user’s iPhone activity and settings.

Once set up, smartphone IDs are designed to be more convenient than physical ones. To use the ID, users hold their phone near a reader at a government facility or a private business, such as a liquor store. A prompt appears on the phone displaying the information requested, like date of birth and legal name. Users authenticate the exchange via face or fingerprint scan or passcode, and the requested information is shared. The history of these exchanges is stored on the smartphone and is not accessible to Apple or the issuing state authority, as per Apple’s policy.

Until broader acceptance of mobile IDs occurs, the DMV advises individuals to carry a physical ID card, as failing to do so is against the law, according to California Highway Patrol spokesperson Jaime Coffee.

California’s prior mobile ID technology, the DMV smartphone app, currently serves over half a million users. The app can present a mobile ID and read IDs, including the new ones from Apple and Google wallets. The ID reader is currently the only method through which the DMV accepts digital IDs.

However, DMV director Gordon hopes that the introduction of digital IDs by Apple and Google will encourage more citizens to use them and prompt more retailers and financial institutions to accept them, both in-person and online. He envisions digital IDs improving access to state and local services, enabling individuals to verify their identity when paying taxes online. Additionally, he imagines DMV officials providing mobile IDs on-site to homeless individuals to quickly replace lost IDs, facilitating access to necessary services. The DMV plans to host hackathons in Silicon Valley to explore innovative applications for digital IDs.

While these IDs present significant advantages, they also raise new privacy concerns. Alexis Hancock, director of engineering at the Electronic Frontier Foundation, criticized the DMV Wallet app for lacking protections that control what information is shared. For example, a user purchasing alcohol should be able to verify their age without disclosing their address to the retailer.

Hancock stresses the importance of lawmakers establishing regulations for mobile ID use, such as prohibiting the creation of databases that track individuals’ movements when using identification or age verification—databases that currently do not exist but could be enabled by digital IDs.

Such tracking could impact many people in states where age verification has become common for accessing adult content. This year, the California Legislature did not pass a bill aimed at making it illegal to store or share information obtained during age verification or track individuals’ online activities. However, the bill would have required businesses selling age-restricted items to verify customers’ ages. Some privacy advocates opposed the legislation, but over 20 U.S. states have considered age verification laws.

Although Apple and Google typically employ strong security measures, Hancock warns against blind trust in companies regarding data privacy. Past incidents have highlighted the need for caution. She expresses concern that increased frequency of digital information sharing could heighten the risk of data leaks.

Hancock is also wary of agreements between tech companies and state agencies. An analysis of contracts between Apple and states like Georgia and Arizona found that Apple exerts significant control over state agencies, mandating that they provide digital ID cards at no cost and bear the expenses for the systems used to issue these credentials. Similar clauses are present in agreements between California and tech companies.

After a public records request, CalMatters obtained a 2022 memorandum of understanding signed by an Apple executive and a California Department of Technology employee, which requires the state to fund the necessary personnel and technology to maintain Apple Wallet ID cards. The agreement also stipulates that the state must treat digital IDs like physical ones and dictates how to market them, while ensuring a digital option is available when individuals obtain new or replacement IDs.

An additional contract signed in August 2023 mandates that the state provide Apple with monthly reports, though the specific content of these reports is not disclosed as it is redacted.

The contract with Google, signed in July, includes ongoing work to develop new features such as selective disclosure, obtaining an ID without a physical card, sharing an ID across devices, and adding multiple credentials for individuals like parents and children.

Both agreements assert that Apple and Google will not share individual information with third parties, including law enforcement, without user consent. Additionally, the companies will collaborate with state agencies to prevent fraudulent ID issuance and report any suspected cases of digital ID fraud.

After reviewing the contracts, Hancock concluded that they reveal excessive control given to Apple by the state, allowing the company to dictate certain processes, such as suggesting digital options when residents renew their physical licenses and requiring state approval for marketing strategies.

“Apple is directing the public perception regarding digital IDs,” she noted, indicating that much of the messaging about digital IDs to Californians is influenced by Apple.

Both the DMV and Login.gov have faced challenges in their efforts to modernize government services. A federal investigation revealed that Login.gov misled other agencies about its compliance with a federal identity verification standard, which was not met due to concerns about technology’s potential discriminatory effects.

Similarly, a 2019 investigation by the Los Angeles Times identified issues with the California DMV’s rollout of a voter registration program, including the accidental sharing of personal information and the distribution of inaccurate documents to election officials statewide. Apple’s vice president, Jennifer Bailey, called the launch of digital IDs “an important milestone” in the rollout of IDs in Apple Wallet, as announced in a press release from Gov. Gavin Newsom’s office.

Recently, smartphones using Google’s Android system gained the capability to add California IDs and driver’s licenses to Google Wallet. California is the fifth state to offer Google Wallet IDs and the seventh for Apple Wallet IDs.

While few businesses and state agencies currently utilize mobile IDs for identity verification, this situation is changing rapidly. Verifone, a company whose terminals accept payments from Apple and Google smartphones, is collaborating with the California DMV and TruAge to make in-person age verification more common at businesses statewide. “Currently, only a few locations accept them, but plans are in place for several thousand to be introduced soon,” DMV director Steven Gordon reported.