The news: Apple debuted Digital IDs derived from iOS users’ US passports, per a press release.

The Digital ID is in beta at more than 250 Transportation Security Administration (TSA) checkpoints in the US for domestic flights. Apple will roll out an update that will let businesses and organizations verify the age and identity of consumers in person, online, and in apps. 

How we got here: Apple launched support for digital driver’s licenses and state IDs in 2022, which now includes 12 states and Puerto Rico. Apple announced plans to expand the digital IDs to include passports in June.

Why this matters: 85.4 million US adults use Apple Wallet, and 67.3 million tap to pay with Apple Pay at checkout, per our forecasts. This clears the way for massive adoption of these features for travel and commerce as Apple leads the shaping of consumer behavior like how you pay or verify your identity.

Our take: Digital IDs can make mobile wallets more useful and encourage users to complete transactions with their phones instead of a card. But adoption will only take off if a critical mass of merchants and airports accept them as a valid form of ID.

Making more integrations for travel, shipping, ticketing, and commuter cards—while also exploring other wallet utilities like package tracking, order management, and event ticket integrations—will be critical to getting users to make the switch. That opens up even greater volume opportunities for mobile wallets and can give them a greater share of retail transactions.