Why mDLs Are More Than Just a Digital copy of physical ID

Jan 17, 2025

There is a certain level of hype already for some time in relation to mobile Driver’s Licenses (mDL) in the US, since it is under implementation in most of the states with varying success. Nevertheless, significant progress has been achieved and as of mid January 2025 already 15 states have mDL available for their residents, and many more to be joining later this year.

From the first glance it might seem that an mDL is just a digital replica of a traditional ID. However, it is a lot more. By integrating seamlessly into platforms like Apple Wallet, Google Wallet, and Samsung Wallet, mDLs are poised to transform the way individuals interact with businesses and governments. We will further explore what makes mDLs superior over traditional plastic IDs.

What Makes mDLs Unique?

Unlike their physical counterparts, mDLs are not bound by the constraints of a plastic card. They offer:

Dynamic Data Sharing: mDLs allow users to share specific information, such as age verification, without revealing other personal details like full name or address.
Real-Time Updates: Changes to an mDL, such as a new address or updated driving privileges, are instantly reflected, eliminating the need for going to issuing authority and reprinting.
Cross-Platform Integration: Embedded in mobile wallets, mDLs integrate with other digital tools, enhancing usability and security.

Privacy and Security Advantages

A significant advantage of mDLs is their robust privacy and security framework. They employ:

Selective Disclosure: Users can share only the information necessary for a transaction.
End-to-End Encryption: Ensures that data cannot be intercepted during verification.
Biometric Authentication: Mobile wallets add an extra layer of security by requiring fingerprint or facial recognition, which prevents an unauthorised misuse of the digital document by someone else besides the actual holder.

Practical Applications Across Platforms

The true power of mDLs lies in their ability to function seamlessly across various platforms and industries. Here are some examples:

Online Identity Verification

mDLs are particularly beneficial for online use cases, where identity verification is critical for security and compliance. Examples include:

E-Commerce Platforms: Verifying the identity of buyers and sellers to prevent fraud.
Remote Banking: Customers can use mDLs for secure account creation, loan applications, or large transactions, reducing the risk of identity theft.
Telehealth Services: Patients can verify their identity before virtual consultations, ensuring the legitimacy of interactions.
Online Gaming: Age verification can be streamlined for platforms that require users to meet minimum age requirements.
Gig Economy and Freelance Platforms: Verifying the identities of workers and clients to build trust and accountability in online transactions.

These are just a few examples, there are many more applications that society will realize, and in near future we will consider online identity verification obvious, just like mobile payments which quickly gained popularity 10 years ago.

In-person identity verification

Age-restricted items: When purchasing age-restricted items like alcohol or tobacco, users can present their mDL through their mobile wallet. Retailers equipped with NFC-enabled devices can verify the user’s age without seeing extraneous personal information.
Travel: Airports are already using mDLs for streamlined check-ins and security screenings. Travelers can use their mobile wallets to verify identity at TSA checkpoints, reducing wait times and improving efficiency.
Financial Services: Banks are adopting mDL verification to comply with Know Your Customer (KYC) requirements online and in-person. With just a tap, users can prove their identity securely.
Healthcare Access: Hospitals and clinics can use mDLs to authenticate patients during check-ins. This ensures accurate record-keeping and protects against identity fraud in healthcare systems.

Basically any use case where nowadays people have to show their physical ID, can be replaced with mDL. In addition, mobile Driver’s Licenses are far more than digital versions of traditional IDs. They represent a shift toward a more secure, convenient, and user-centric identity verification system that is natively digital from the very beginning of its existence. As adoption grows, so too will various use cases and the opportunities to innovate, making mDLs a cornerstone of the digital future.