Apple Imposing Strict Terms on U.S. States for Digital IDs in Wallet App

[DailySlow]

Apple's agreement with U.S. states looking to add digital ID cards such as driver's licenses to the Wallet app includes strict terms and charges footed to the taxpayer, according to fintech consultant Jason Mikula and CNBC.

The ability to add a driver's license or ID to the Wallet app is a new feature in iOS 15. Customers will be able to tap the plus icon at the top of the Wallet app to add their ID, and then simply tap their iPhone or Apple Watch on an identity reader at a TSA checkpoint, without taking out their physical card.

Confidential documents seen by Mikula and CNBC purportedly reveal that Apple is imposing stringent terms and conditions on U.S. states looking to implement the new feature. The costs of meeting these requirements, such as hiring staff, project management, marketing, and funding, will be charged to the taxpayer with no financial support from Apple.

The company requires states to independently maintain the systems used to issue and service credentials, hire project managers to respond to Apple's inquiries, verify IDs, perform quality testing to ensure that digital IDs meet Apple's requirements, "prominently" market the feature, "proactively" offer digital IDs whenever a citizen gets a new or replacement card, and encourage state and federal government agencies to widely adopt digital IDs.

Apple has "sole discretion" for a number of the program's key aspects, including what devices will be compatible with digital IDs, how states report on the performance of the feature, and its launch date. Apple is also insisting upon the ability to review and approve all state marketing for the feature.

These terms were apparently included in a seven-page memorandum of agreement that was signed by Georgia, Arizona, Kentucky, and Oklahoma. According to CNBC, the agreement "mostly portrays Apple as having a high degree of control over the government agencies responsible for issuing identification cards."

Georgia and Arizona are set to be the first states to offer citizens the opportunity to add their driver's license to the Wallet app, but have yet to launch the program. CNBC noted that while it reviewed the contracts for these states, it has not seen the exact agreements for Connecticut, Iowa, Maryland, and Utah, the four other states that have signed up for Apple's digital ID program.

Article Link: Apple Imposing Strict Terms on U.S. States for Digital IDs in Wallet App

Apple needs to set the bar very high. Also vulnerabilities in any state’s id database have to be totally air-gapped so Apple has NO liability whatsoever from it.
IMHO this is an experiment at this point that limit’s potential catastrophic damage as this great service takes its baby steps.

 

[jimbobb24]

This headline is hilarious.

I think you mean: “Apple announces digital ID requirements”

 

[Alan Gordon]

That CNBC article was one of the WORST examples of "outrage baiting" I've seen in a long time.

I live in Georgia, and I'm still shocked that Georgia is to be one of the first states to adopt this. I just hope this extremely biased article does not make Georgia get cold feet due to any potential blowback on this common sense approach from the "outrage crowd".

 

[MrMojo1]

"The company requires states to independently maintain the systems used to issue and service credentials, hire project managers to respond to Apple's inquiries, verify IDs, perform quality testing to ensure that digital IDs meet Apple's requirements, "prominently" market the feature, "proactively" offer digital IDs whenever a citizen gets a new or replacement card, and encourage state and federal government agencies to widely adopt digital IDs."

Where are the states and fed govt going to get funding? They are already stretched thin on their respective budgets. Re-allocation of funds won't be pleasant.
Be careful what you wish for but people who may want the digital IDs will probably also be very vocal if their fed/state taxes/fees are increased.
It may be good to have technologically but implementation and funding will be issues as well as acceptance by various companies and fed/state agencies.

 

[Alan Gordon]

"The company requires states to independently maintain the systems used to issue and service credentials, hire project managers to respond to Apple's inquiries, verify IDs, perform quality testing to ensure that digital IDs meet Apple's requirements, "prominently" market the feature, "proactively" offer digital IDs whenever a citizen gets a new or replacement card, and encourage state and federal government agencies to widely adopt digital IDs."

Where are the states and fed govt going to get funding? They are already stretched thin on their respective budgets.
Be careful what you wish for but people who may want the digital IDs will probably very vocal if their fed/state taxes/fees are increased.
It may be good to have technologically but implementation and funding will be issues as well as acceptance by various companies and fed/state agencies.

Georgia has a budget surplus.

Georgia's also working on digital license plates.

We're getting fancy!

 

[TomieCzech]

Isn’t it the same case for any physical IDs? Management, production, issuing etc. all paid by tax payers.

 

[DailySlow]

The Apple system is a standard they are trying to produce it’s up to the other guys to play ball.

Maybe if the government cares about our personal information Apple wouldn’t have to do this. How many states have had their worthless IT infrastructure compromised? Who has been affected by breaches in the big three for credit reporting? Yup government is doing a real bang up job implementing systems as cheap as possible. If the government put out a Digital ID app it would be trash.

We are the only developed country without digital vaccination cards with a few exceptions of private entities/states providing because the government is clueless when it comes to technology. It’s also all about money not what should be done.

the FBI site (resource sharing for law enf across the country) was just HTML hacked. Infosec is in tatters. The US COULD use blockchain, even for voting. No national vax certs/QR code apps. Loophole worship is very string in this one. I have Kaiser and they hsve stepped up so immunization record (covid vax shots) can now be sent to Apple Wallet with a QR code. But you get the idea - it’s a bloody mess. State ids would be a gawdsend. Kudos to Apple for giving it a shot (ha ha) and let’s hope they get it 90% right.

 

[DailySlow]

Anyone who has worked in state government knows this is a good thing. I'm surprised at all the complaints. As another user stated, the states need to be responsible for managing their own data and it should be strict so not anyone can just up and put in IDs.

The article is annoying with the whole tired "the tax payers foot the bill hur-durr" nonsense. The money will come out of a predetermined budget, your taxes aren't going up just because this gets implemented, and with the size of state budgets this is going to be less than a drop in the bucket cost wise.

There will be cost savings - I mean the data (iffy and vulnerable as it may be in 50 state capitals of diverse flat earth orientations) exists as it stands and will stay there - not at some Apple server. There are huge costs that come with the extant hard card system. If even half of a state’s citizens go digital, after a breaking in period, it’s likely lower costs, quicker service, and better security will be delivered.

 

[DailySlow]

Doesn’t the driver's license contain sensitive and personal information?

But it’s not “HELD“ by Apple. That’s why standards for the interface with Apple’s walley ID app need to be stringent. A hodgepodge of 50 state databases each with its own (SQL, Oracle, et. al. ) permutation thereof, has to slit right in to the app’s fields. This is a challenge. But Apple won’t ever be holding the data, just it’s presentation at a given instant, or boarding gate, and encrypted.

 

[gpwdeux]

I hope California says "NO thanks, NOT interested !"

Why would you hope that??

 

[SFjohn]

I approve of Apples’s requirements in this regard. CA can certainly afford it, so I hope they get it done sooner rather than later.

 

[gpwdeux]

This whole feature is benefiting Apple. Why are they adding those restrictions? Intead, it should be from the States who are the governing body of the cards issued by them.

I really don't see how this is whole benefitting Apple. No one is going to choose an iPhone based on this. Why would you not want them to require ISO restrictions when it comes to your personal data and are you saying that you trust the bureaucracy of a state government (of which there are 50) not to cut corners?

 

[gpwdeux]

Im fine using a state or federal issued app to use a digital ID instead of Apple's wallet. Apple is way overstepping here.

Well, crap in one hand, wish in the the other, and tell us which one fills up first. There is no federal involvement when it comes to drivers license's, and waiting on 50 individual states to come together on anything is a fool's errand

 

[ksec]

This will perhaps be an unpopular perspective, but If you actually read the text carefully, and then propose to yourself what the opposite would be, you wouldn’t want the opposite. This isn’t Apple “setting a standard” (see below; Apple is using an ISO standard, not their own), and this isn’t Apple taking control over state infrastructure (which I imagine nobody would want).

Apple is, as someone pointed out above, making the wallet. They’re simply informing states of the work that goes into producing the actual ID that goes into the wallet, and making it clear Apple won’t help them in doing so. States are free to use the same digital ID on non-Apple devices (again, it’s an ISO standard), and they should do so only if they feel it benefits them and their taxpayers. If they don’t… fine.

A specific point:



This is actually a good thing. Ever seen the TV shows where you get a “free $10000 renovation” and it‘s done slipshod? Having the states own the finances means the states have control over the implementation. They can implement it in a way that facilitates cross-platform compatibility, for example. Ultimately, this doesn’t “benefit Apple,” in that Apple sees no incremental revenue for this feature; it “benefits taxpayers,” who’ll need to foot the bill. If a given state’s taxpayers don’t want the bill or the benefit, cool, their state doesn’t need to do it.

This won’t stay an iOS-only feature; there’s zero chance any government who stands up this infrastructure won’t deploy it as widely as possible. Android may not offer something similar today, but what Apple’s doing is based on a set of open standards—Google can add this into Android anytime they want.



The actual text doesn’t preclude states from offering this to non-Apple devices; it says that Apple will determine which Apple devices Apple supports digital IDs on.



Again, you’d want this. You don’t want someone else doing it.



Again… I’d think this is how you’d want it. “Apple‘s requirements” being, in this case, the standards that Apple has adopted and is using. You surely wouldn’t want Apple verifying IDs Or doing QA on the systems.



Yeah, I mean, maybe this is a bit much, but I can’t imagine states spending the money and not marketing it. Nevada DMV launched a mobile phone reservation service (which works quite well) and they’ve probably spent more marketing it than they did developing it, to get people to use it.



I kind of assume you’d want this if you were going to invest in a digital ID program. Maybe instead of seeing this as “Apple being restrictive,” you can choose to see it as, “Apple saying, ‘hey, only do this if you’re going to be serious about it, otherwise don’t bother.’”

And from above…



Poland is a single country; the 50 US states are much like individual countries in this regard. You cannot view the US as a “country” in many aspects—the Federal government, in some regards (including IDs) acts more as an EU. For example, the Federal government has guidelines on IDs like driver’s licenses, which states can choose to follow or not. For example, in Nevada it is entirely possible to get a Federally approved “Real ID” as well as a non-Real ID. Coordinating ID activities across 50 states is a huge lift.

Also from above…



They did, in the US. It’s called “Real ID.” And it still hasn’t been fully adopted. The Federal government is abysmal at coming up with standards, let alone technological ones. Apple is building these off digital ID standards that Apple itself does not own (although it participates in the working groups):



”ISO” is the International Standards Organization; Apple is not creating the standard, here.

And finally..



Having worked on a number of Federal technology projects, I can pretty much assure you this is the very last thing you want. But again, the standard here is not Apple’s. It’s an open spec from ISO. Google has participated in that same standard, just as Apple has.

You might consider the perspective of, “Hey, Apple will make this possible for you, but if you and your taxpayers want it, you’re going to have to pay for it. If you’re going to use our trademarks in your marketing, we want to review that. If you’re going to do this, you might as well promise to market it. Apple’s going to invest something in this [otherwise we wouldn’t need to be sending you inquiries to help get it working] but we want you to own this.”

Legal terminology can sometimes make things seem more evil than they actually are. That’s because legalese isn’t pure English; it’s a set of phrases that have been honed over time to help ensure everyone understands what they’re agreeing to. So just maybe consider that what Apple’s set up is perhaps mostly in the taxpayers’ best interests. They’re using an open standard, they’re forcing states to own the infrastructure and ID data, and they’re not letting states dash this off quickly or without careful planning. I’m surprised anyone would want something different.

Thank You. I had to spend some time to actually Fact Check this because MR comments generally have abysmal signal to ratio quality. I wish this context was actually pointed out in the original posting.

 

[Robert.Walter]

The problem isn't apple "doing it this way"...it's that a corporation should not be doing this AT ALL! Government has a role, and corporations should not be involved. Of course, that doesn't stop shortsighted legislators from giving private companies control over red light cameras, public transit, prisons, bikeshare, etc. etc. And in every case, services to the public are of less value than what the corporation gains.

This has nothing to do with privitizing government services. It has only to do with apple adding an additional regulated user interface.

Unless you think the government needs to be manufacturing smartphones there is always a vital role for private enterprise to play in helping government provide its services just like somebody in the private sector makes the plastic driver’s licenses today.

And because you don’t seem to know how some things work, this information is unlikely to go on an apple server but instead will be local on your devices like Apple Pay (this is why apple has a contract making sure things will work because the states will retain the data.)

 

[MrMojo1]

Georgia has a budget surplus.

Georgia's also working on digital license plates.

We're getting fancy!

It probably won't happen in miserly NH or ME but maybe in MA or VT.

 

[slicktromboner]

What if the Chinese government asks Apple for data? Is Apple going to provide it to them?

It's a bit telling, isn't it? I'm sure they didn't tell the Chinese government to just figure it out on their own dime and comply with Apple's standards. Apple knows exactly who butters their bread.

 

[now i see it]

That’s a boat load complexity and expense just so people don’t have to pull a card out of a wallet.
If something could be made more convoluted and mind boggling- this is a good example.

 

[Blowback]

Apple's agreement with U.S. states looking to add digital ID cards such as driver's licenses to the Wallet app includes strict terms and charges footed to the taxpayer, according to fintech consultant Jason Mikula and CNBC.

The ability to add a driver's license or ID to the Wallet app is a new feature in iOS 15. Customers will be able to tap the plus icon at the top of the Wallet app to add their ID, and then simply tap their iPhone or Apple Watch on an identity reader at a TSA checkpoint, without taking out their physical card.

Confidential documents seen by Mikula and CNBC purportedly reveal that Apple is imposing stringent terms and conditions on U.S. states looking to implement the new feature. The costs of meeting these requirements, such as hiring staff, project management, marketing, and funding, will be charged to the taxpayer with no financial support from Apple.

The company requires states to independently maintain the systems used to issue and service credentials, hire project managers to respond to Apple's inquiries, verify IDs, perform quality testing to ensure that digital IDs meet Apple's requirements, "prominently" market the feature, "proactively" offer digital IDs whenever a citizen gets a new or replacement card, and encourage state and federal government agencies to widely adopt digital IDs.

Apple has "sole discretion" for a number of the program's key aspects, including what devices will be compatible with digital IDs, how states report on the performance of the feature, and its launch date. Apple is also insisting upon the ability to review and approve all state marketing for the feature.

These terms were apparently included in a seven-page memorandum of agreement that was signed by Georgia, Arizona, Kentucky, and Oklahoma. According to CNBC, the agreement "mostly portrays Apple as having a high degree of control over the government agencies responsible for issuing identification cards."

Georgia and Arizona are set to be the first states to offer citizens the opportunity to add their driver's license to the Wallet app, but have yet to launch the program. CNBC noted that while it reviewed the contracts for these states, it has not seen the exact agreements for Connecticut, Iowa, Maryland, and Utah, the four other states that have signed up for Apple's digital ID program.

Article Link: Apple Imposing Strict Terms on U.S. States for Digital IDs in Wallet App

Can't blame Apple. This is the USA...lawyers and stupid juries are a dime a dozen. ANY way someone can blame/sue Apple for ANYTHING there will be a lawyer to help. Think IDs; Alcohol buying; Bar hopping; Car driving; Concert Admission (recent events in Texas....yes, had this already been implemented APPLE would be among those being sued.).....etc. etc.

 

[Blowback]

Apple makes record profits and still nickel-and-dimes states to implement a feature that will mostly benefit Apple.

Courage.

WRONG! (See my reply #119). YOU are not seeing the whole picture...which Apples lawyers are very highly paid to see!!!!

 

[lartola]

We are the only developed country without digital vaccination cards with a few exceptions of private entities/states providing because the government is clueless when it comes to technology. It’s also all about money not what should be done.

But it’s not because the government is clueless when it comes to technology, it’s because in the US they never want to do anything at a federal level, they always leave everything to the state governments. In countries where they have a digital vaccination card that’s because it’s issued by the federal/national government and not by local or regional governments or private companies. And it’s not just developed countries: Mexico has a digital vaccination card issued by its federal government, for example, despite it not being a developed country.

 

[lederermc]

I find it very interesting that the "3rd world" states, and not the techno-leading states - would be this early adopters.

 

[QuarterSwede]

This will perhaps be an unpopular perspective, but If you actually read the text carefully, and then propose to yourself what the opposite would be, you wouldn’t want the opposite. This isn’t Apple “setting a standard” (see below; Apple is using an ISO standard, not their own), and this isn’t Apple taking control over state infrastructure (which I imagine nobody would want).

Apple is, as someone pointed out above, making the wallet. They’re simply informing states of the work that goes into producing the actual ID that goes into the wallet, and making it clear Apple won’t help them in doing so. States are free to use the same digital ID on non-Apple devices (again, it’s an ISO standard), and they should do so only if they feel it benefits them and their taxpayers. If they don’t… fine.

A specific point:



This is actually a good thing. Ever seen the TV shows where you get a “free $10000 renovation” and it‘s done slipshod? Having the states own the finances means the states have control over the implementation. They can implement it in a way that facilitates cross-platform compatibility, for example. Ultimately, this doesn’t “benefit Apple,” in that Apple sees no incremental revenue for this feature; it “benefits taxpayers,” who’ll need to foot the bill. If a given state’s taxpayers don’t want the bill or the benefit, cool, their state doesn’t need to do it.

This won’t stay an iOS-only feature; there’s zero chance any government who stands up this infrastructure won’t deploy it as widely as possible. Android may not offer something similar today, but what Apple’s doing is based on a set of open standards—Google can add this into Android anytime they want.



The actual text doesn’t preclude states from offering this to non-Apple devices; it says that Apple will determine which Apple devices Apple supports digital IDs on.



Again, you’d want this. You don’t want someone else doing it.



Again… I’d think this is how you’d want it. “Apple‘s requirements” being, in this case, the standards that Apple has adopted and is using. You surely wouldn’t want Apple verifying IDs Or doing QA on the systems.



Yeah, I mean, maybe this is a bit much, but I can’t imagine states spending the money and not marketing it. Nevada DMV launched a mobile phone reservation service (which works quite well) and they’ve probably spent more marketing it than they did developing it, to get people to use it.



I kind of assume you’d want this if you were going to invest in a digital ID program. Maybe instead of seeing this as “Apple being restrictive,” you can choose to see it as, “Apple saying, ‘hey, only do this if you’re going to be serious about it, otherwise don’t bother.’”

And from above…



Poland is a single country; the 50 US states are much like individual countries in this regard. You cannot view the US as a “country” in many aspects—the Federal government, in some regards (including IDs) acts more as an EU. For example, the Federal government has guidelines on IDs like driver’s licenses, which states can choose to follow or not. For example, in Nevada it is entirely possible to get a Federally approved “Real ID” as well as a non-Real ID. Coordinating ID activities across 50 states is a huge lift.

Also from above…



They did, in the US. It’s called “Real ID.” And it still hasn’t been fully adopted. The Federal government is abysmal at coming up with standards, let alone technological ones. Apple is building these off digital ID standards that Apple itself does not own (although it participates in the working groups):



”ISO” is the International Standards Organization; Apple is not creating the standard, here.

And finally..



Having worked on a number of Federal technology projects, I can pretty much assure you this is the very last thing you want. But again, the standard here is not Apple’s. It’s an open spec from ISO. Google has participated in that same standard, just as Apple has.

You might consider the perspective of, “Hey, Apple will make this possible for you, but if you and your taxpayers want it, you’re going to have to pay for it. If you’re going to use our trademarks in your marketing, we want to review that. If you’re going to do this, you might as well promise to market it. Apple’s going to invest something in this [otherwise we wouldn’t need to be sending you inquiries to help get it working] but we want you to own this.”

Legal terminology can sometimes make things seem more evil than they actually are. That’s because legalese isn’t pure English; it’s a set of phrases that have been honed over time to help ensure everyone understands what they’re agreeing to. So just maybe consider that what Apple’s set up is perhaps mostly in the taxpayers’ best interests. They’re using an open standard, they’re forcing states to own the infrastructure and ID data, and they’re not letting states dash this off quickly or without careful planning. I’m surprised anyone would want something different.

I don’t know who you are but what a fantastic post!! Well done.

 

[SFjohn]

But it’s not because the government is clueless when it comes to technology, it’s because in the US they never want to do anything at a federal level, they always leave everything to the state governments. In countries where they have a digital vaccination card that’s because it’s issued by the federal/national government and not by local or regional governments or private companies. And it’s not just developed countries: Mexico has a digital vaccination card issued by its federal government, for example, despite it not being a developed country.

If Mexico is not a developed country, why are so many US citizens retiring there?

 

[msackey]

We are the only developed country without digital vaccination cards with a few exceptions of private entities/states providing because the government is clueless when it comes to technology. It’s also all about money not what should be done.

I don’t think the reason is because the government is clueless. Rather, American society pushes strongly towards privatization and corporate welfare, and meanwhile leaving the notion of general public to the wayside — or, one could argue robbing the general public of public wealth. It’s active corporate privatized takeover which is actively destroying government.