2025 Digital ID Predictions: What's Next for the Industry?
As digital identity technology evolves, the momentum of mobile driver’s licenses (mDLs) and other digital ID formats is reshaping how we think about verification and security. Here are the predictions for 2025 that we at Trinsic believe will define the future of digital IDs.
The Rise of Business Adoption for Digital IDs
One of the most significant shifts we’re anticipating is the widespread adoption of digital IDs by businesses. This trend is already evidenced by moves from major companies like Uber and Amazon:
Uber has partnered with Clear, allowing users to verify their identity using Clear accounts or government ID and selfies. This multi-option approach improves user experience, fraud prevention, and conversion rates.
Amazon plans to start accepting digital IDs like mobile driver’s licenses and European national IDs in 2025, leveraging strong adoption in certain geographies.
These examples demonstrate a growing preference for digital credential verification over traditional methods, offering businesses a compelling way to enhance user trust and streamline processes.
Mobile Driver’s Licenses: A Game-Changer
The prediction for 2025 sees at least 25 U.S. states launching live mDL programs. Additionally, the potential for remote verification, enabled by the new DASH7 standard, could become a reality nationwide. Here’s why this matters:
Convenience: mDLs enable remote verification in seconds, avoiding the cumbersome process of submitting physical ID photos.
User Experience: Transactions requiring ID verification become faster and more reliable, driving adoption and improving satisfaction.
While using a mobile ID for in-person transactions is beneficial, the transformative potential lies in remote verification. The ability to instantly share verified credentials will redefine the user journey across industries.
Government Digital IDs Opening to the Private Sector
In many regions, government-issued digital IDs have been limited to government services, such as tax filing or healthcare access. However, there’s a growing trend of opening these systems to private sector use:
Examples Abroad: Countries like Sweden, Spain, and Greece have seen significant adoption of government IDs that initially served public services and later expanded to private applications.
Impact: Businesses gain access to pre-verified identities, reducing onboarding friction and improving security.
Reusable ID Networks on the Rise
Reusable identity products are becoming more prevalent, and by the end of 2025, document-based identity verification companies are expected to universally offer this feature. The benefits include:
Simplified Onboarding: Users can opt to save verification results for future use, creating a seamless repeat experience.
Fraud Mitigation: Stored digital IDs are less susceptible to errors or tampering compared to one-time verifications.
Companies like Clear exemplify this trend, rapidly growing their network and expanding their reach into various industries.
Challenges for EU Digital Identity (eIDAS 2.0)
Despite the promise of eIDAS 2.0 and unified digital identity initiatives, their rollout may face delays. Here’s what to expect:
Slower Timelines: While ambitious, large-scale deployments like these often take longer than expected.
Incremental Progress: Individual EU member states might launch partial solutions aligned with eIDAS goals, setting the stage for broader adoption in later years.
The Future Looks Bright for Digital IDs
2025 is poised to be a pivotal year for digital identity. From increased business adoption and mobile driver’s licenses to reusable ID networks and government-private sector collaboration, the industry is moving toward a future where secure, frictionless verification becomes the standard. As we move forward, staying ahead of these trends will be crucial for businesses and governments alike.
To learn more about the future of digital identity, check out the 2025 Digital ID Launches to Watch Webinar. It covers key developments in mDLs and eIDs, highlights from 2024, and dives into the 2025 predictions highlighted in this article. The webinar offers valuable insights into global adoption trends and the evolving regulatory landscape, making it a useful resource for anyone navigating the digital ID space.
