Digital wallets are becoming more like the real thing with every passing day. No longer just a vehicle for payments, Google Wallet and Apple Wallet are expanding their use to include identification functionalities.
California’s DMV is testing support for ID cards within the Google Wallet app, according to 9to5Google. Currently in beta, this feature is only available to state DMV employees at the moment.
Earlier this week, California was also testing a measure that would allow individuals to store their ID in an Apple Wallet. Currently, California users who want a digital ID on their phones must use the state’s DMV Wallet app.
As of July 2024, 11 states offer some form of digital ID to residents. Of these, four states have integrated their digital IDs into various digital wallets such as Apple, Google, or Samsung. A similar number of states, such as Connecticut and Ohio, have announced digital ID initiatives but have yet to launch them.
Laying the Groundwork for Acceptance
Christopher Miller, Lead Analyst of Emerging Payments at Javelin Strategy & Research, recently published a report, titled Where Are the Digital IDs? Three Question You Must Ask. To understand consumer adoption of digital wallets, Miller addresses three key aspects: the availability of digital wallets, where they’re accepted, and the level of consumer interest in using them.
“Early adopters have already begun using them for digital IDs,” Miller said. “We’re looking for what the next key threshold will be for adoption.”
California could serve as a bellwether, given it’s the most populous state in the nation. Moreover, as Miller points out, its cultural status could help with acceptance as well.
“If people see someone using a digital wallet on TV or in a movie, it starts to seem normal to them,” Miller said.
The transition from state-issued IDs to digital versions is also significant. As Miller’s report notes, digital IDs are accessible through both mobile digital wallets and state-issued mobile ID apps. However, the availability of digital IDs via mobile digital wallets is likely to have the greatest impact on adoption.
Google has long planned for its wallet to be used for more than just money. Last year, Dong Min Kim, Director of Product Management at Google Wallet told PaymentsJournal: “A lot of the things that you used to carry around with you are becoming digitized, and people are getting a lot more comfortable about what their mobile device can do. There’s the payments experience to Google Wallet, but we also want to support non-payment use cases that are coming online more and more.”