4 considerations for launching an effective digital ID system

States are accelerating efforts to launch digital identification programs, aiming to make it easier and safer to use a state ID in a range of circumstances—from airport security checkpoints to age verification at retail locations. Many states already offer digital IDs and driver's licenses for Apple and Android devices and to Apple and Google Wallet users. The Transportation Security Administration now accepts digital IDs from 6 states at airport security checkpoints, and 31 states are exploring or implementing digital IDs.  California recently launched a digital ID pilot with the goal of enrolling up to 1.5 million residents. 

There are also efforts underway at the federal level. For example, the Department of Homeland Security announced plans to ensure the public can use mobile IDs, developing a proposed regulation temporarily waiving certain REAL ID requirements for federal agencies accepting state-issued mobile driver's licenses.

Digital ID has the potential to provide eligible individuals with easy, secure, privacy-preserving access to critical government services. As states move forward at varying speeds with digital ID programs, there are several key challenges to address to ensure successful rollouts and adoption. 

1. The digital divide continues to narrow but isn’t going away

A 2022 study by the World Bank estimated that approximately 850 million people worldwide lack any form of physical ID to prove their identity. Digitizing could help close that gap, but not without surmounting challenges. Digital identity verification services generally require users to have newer and more expensive smartphone models. Additionally, remote and rural residents with limited connectivity, non-native language speakers and people who are less technically savvy would face additional challenges acquiring and using digital ID. These factors can exacerbate access gaps and hinder digital ID services for marginalized communities.

If states consider using digital IDs without regard for what’s feasible for all residents, they may inadvertently exclude those who could most benefit from electronic access to the modern services that secure authentication would allow. 

2. Confidence in security and privacy is essential to foster adoption

Transitioning from physical IDs to digital IDs introduces novel security and privacy challenges. Personal data and photos that were previously only accessible to law enforcement on department networks would be available through smartphones and apps, increasing the potential attack surface.

To protect sensitive information, it’s vital to integrate appropriate access controls and security measures into the digital ID system. With robust encryption, authentication protocols and privacy safeguards, digital IDs can provide a secure platform for storing and accessing personal data. 

Besides being secure, digital IDs must be functional. States should consider systems that not only serve the primary purpose of identification but also offer new features—like employee keycard access—that make digital ID an attractive and versatile tool that reduces the need for carrying multiple physical cards.

By building security, privacy and functionality into digital IDs, states can make it easier for individuals to trust this technology, leading to the increased adoption rates and widespread acceptance that’s required for the technology to have an impact. 

3. Operability can’t end at the state line 

To effectively replace physical cards, digital IDs must be compatible across different IT systems and state boundaries. Achieving seamless interoperability requires overcoming not only technical barriers within and across states but also standardizing protocols at a national level. 

The European Union’s Electronic Identification, Authentication, and Trust Services, or eIDAS, regulation, for example provides the basis for cross-border electronic identification, authentication and website certification within the EU. 

In North America, the American Association of Motor Vehicle Administrators’ Digital Trust Service undergirds the security of mobile driver licenses by serving as the official authenticator of mDLs. By verifying that mDLs came from a legitimate issuing authority, the Digital Trust Service can enable widespread support and use of mDLs.

4. Digitization by default isn’t enough, user experience matters

While there are thoughtful and innovative approaches to digital ID around the world, it’s essential to realize that simply digitizing a physical ID does not guarantee widespread adoption. People are accustomed to seamless technologies that can be used across applications and situations. 

To encourage broad acceptance and usage of digital IDs, offering new, valuable and innovative features is crucial. These could include secure digital signatures, integration with mobile payment systems or interoperability with other governmental digital platforms or agency databases. Hybrid models are options that combine physical and digital elements and can help ease the transition for users who may be more comfortable with traditional identification methods while gradually embracing digital alternatives. The country of Estonia, which is guided by eIDAS, is a leader in state-issued electronic identity. It was one of the first nations to make digital ID central to accessing public services, voting, shopping, paying bills and more, even for citizens living outside the country. 

Digital ID will ultimately make citizens’ lives easier, enabling more straightforward access to services and helping them centralize access to important information. Examples of digital ID innovation happening in the U.S. and around the world show the technology faces both opportunities and challenges. Careful consideration of equal access, security, interoperability and user convenience is essential for successful state implementations of digital ID programs.

Carl Hammersburg runs point on Government and Healthcare Risk and Fraud Analytics for SAS.