Digital IDs: The Future of Identity Documents

In the world of identity verification, few terms are as widely used and as broadly interpreted as “digital ID.” For some, it’s a secure login system for government services. For others, it’s a digital twin of a physical ID card stored on a smartphone or smartwatch.

Regardless of the interpretation, one fact is undeniable: digital IDs represent the next evolutionary step in identity documentation. This transformation is already underway, and while we can shape it to some degree, it’s no longer something we can halt.

This article unpacks what digital IDs mean, how they function, and where they stand across the globe today.

Regula’s Global Study on Digital IDs

In early 2024, Regula conducted an international survey on digital IDs to explore how organizations across aviation, finance, government, technology, and telecommunications perceive digital IDs. The study spanned Europe, North America, and the Middle East, regions that play a leading role in shaping global identity trends.

Why these sectors?
Government entities often initiate digital ID programs, while others tend to be among the first to implement new technologies in practice.

What Businesses Think About Digital IDs

The findings revealed that 81% of respondents already had a basic understanding of digital ID technology, and 42% were actively integrating it into their operations.

Still, the path forward isn’t without obstacles. Key barriers include:

• Cybersecurity risks (50%)
• Privacy concerns (44%)
• Lack of international standards (74%)

These factors explain why 35% of participants continue to see physical IDs as indispensable for verification.

Yet optimism remains strong:

• 75% reported better user and citizen experiences,
• 74% observed improvements in ID verification efficiency, and
• 71% said digital IDs strengthened security and fraud prevention.

In short, organizations recognize the potential of digital identity but remain cautious about the technical and regulatory hurdles ahead.

What Exactly Is a Digital ID?

Before diving deeper, it’s crucial to clarify what qualifies as a digital identity. After analyzing multiple definitions, we can say that a digital ID typically has these core characteristics:

1. It exists in digital form rather than physical.
2. It serves as proof of identity, containing verified personal data that can replace a physical document.
3. It allows authentication and authorization through a unique identifier.

A good real-world example comes from the International Civil Aviation Organization (ICAO) with its Digital Travel Credentials (DTCs). These credentials digitally represent a person’s identity using data extracted from a physical passport via an NFC-enabled device. Once verified, passengers can board a flight through a simple facial recognition scan, no passport in hand required.

Digital IDs and Security

Just as physical IDs include protective features like holograms or MRZ codes, digital IDs are secured within digital wallets, specialized apps that use encryption and cryptographic techniques to safeguard identity data.

In DTCs, for instance, encryption ensures data integrity and prevents unauthorized modification. This makes digital IDs both safer and more convenient than traditional documents, which can be lost, forged, or stolen.

That said, digital wallets are not immune to physical loss or theft, since they depend on the security of the device that stores them.

The Role of ISO Standards in Building Digital ID Frameworks

The development of digital identity ecosystems relies heavily on global standards to ensure security, interoperability, and user control.

• ISO/IEC 29003 defines procedures for identity proofing and enrollment, outlining how personal data should be collected and verified.
• ISO 27001 and ISO 31000 provide guidance on information security and risk management.
• ISO 20022 and ISO 19115 help ensure compatibility in financial and geospatial data exchanges.

Together, these standards form the backbone of trustworthy, scalable digital ID infrastructures.

Establishing a national digital ID system requires dedicated infrastructure for issuance, validation, and management. Governments, service providers, and citizens all play a role:

• Service providers must obtain accreditation to demonstrate compliance with privacy, security, and accessibility standards.
• Individuals simply register, verify their identity, and gain access to the system.

Global Adoption: Countries Leading the Way

Digital ID development varies widely across the world. Some countries, like Estonia, began decades ago, while others are only now taking their first steps. Current implementations range from digital extensions of physical IDs to fully digital credentials.

Let’s explore some of the most advanced examples.

Austria: ID Austria

Austria transitioned from its Handy-Signature mobile system to a full-fledged ID Austria program in 2023. Users can access it via apps such as Digitales Amt and eAusweise.

Two functional levels are offered:

• Basic: Retains features from the previous system.
• Full: Allows smartphone-based digital identity use and recognition across the EU.

To upgrade to full access, users must visit a registration office and verify their identity with official photo ID documents. Once activated, ID Austria enables users to authenticate online, verify identity in person, and perform secure digital transactions.

Bosnia and Herzegovina: e-IDDEEA

The e-IDDEEA app lets citizens issue digital versions of passports, ID cards, and driver’s licenses. It meets EU eIDAS standards and even supports qualified electronic signatures, usable across both public and private sectors.

To register, citizens must visit an authorized office and receive secure credentials. Once activated, they can sign documents or interact with various government and commercial services online.

China: National Online Identity Authentication Public Service

Launched on July 15, 2025, China’s digital ID system provides citizens with a unique online identity token known as a network number. It combines tokenized credentials with partial identity data, enabling authentication across web platforms.

Registration involves both ID and biometric verification, with NFC used to confirm chip authenticity in Chinese eID cards. The program aligns with the country’s Cybersecurity and Data Security Laws, ensuring strong privacy safeguards.

Costa Rica: IDC-Ciudadano

Costa Rica rolled out its digital ID card in September 2025, making it valid across banks, telecoms, and public institutions. Citizens can apply online, then activate their ID in the IDC-Ciudadano app using facial recognition.

Some institutions already support digital IDs, while others have until early 2026 to integrate the system.

Denmark: MitID

Denmark’s MitID system functions as the national eID, used for public services, online banking, and private-sector transactions. Citizens can verify themselves remotely using passport NFC checks or in person at Citizen Service Centers.

The country also issues digital driver’s licenses and health insurance cards, both legally equivalent to physical documents. A future EU Digital Wallet will further expand MitID’s usability across Europe.

Estonia: e-ID and Mobile-ID

Estonia is often hailed as the birthplace of digital identity. Its e-ID program has existed for over 20 years, enabling citizens to vote, sign documents, pay taxes, and access healthcare online.

Though physical digital ID cards are being phased out, Mobile-ID continues to thrive, providing SIM-based authentication and digital signatures. Estonia is also contributing to the development of the EUDI Wallet, which aims to unify digital ID systems across the EU.

Singapore: Singpass

Singapore’s Singpass app serves as the country’s universal identity platform. It allows residents to prove identity both online and in person, sign documents digitally, and access over 2,000 public and private services.

Registration can be completed entirely through facial recognition; no in-person visit is required. Once verified, users can log in to government portals or private services through single sign-on.

South Korea: Mobile IDentification App

Introduced in 2025, South Korea’s Mobile IDentification App replaces physical resident cards. Built on blockchain and advanced encryption, it ensures privacy and immutability.

Citizens verify their identity through NFC chip reading and biometric validation. Each digital ID is linked to one smartphone, allowing remote deactivation if lost, a security model that differs from Singapore’s multi-device flexibility.

Spain: MiDNI

Spain’s MiDNI app stores digital versions of national ID cards. It currently grants access to government platforms, with plans to expand to banking, e-commerce, and travel sectors.

Registration involves using a physical DNI card and email verification. Once fully deployed, MiDNI will enable online voting, hotel check-ins, and even car rentals all with a single digital credential.

UAE: UAE Pass

The UAE Pass provides citizens, residents, and even visitors with a unified digital identity. Users can sign documents, access government and private services, and renew official records directly from the app.

Verification can be completed using facial recognition or via a self-service kiosk that scans fingerprints. UAE Pass supports full-fledged digital signatures, making it one of the most comprehensive systems globally.

Mobile Driver’s Licenses: A Special Case

While mobile driver’s licenses (mDLs) used in countries like Argentina and Mexico share traits with digital IDs, they’re not yet nationwide systems. Typically issued by local agencies, mDLs contain QR codes secured with digital signatures and serve primarily for traffic enforcement or transport-related purposes.

Still, the ISO/IEC 18013-5 standard governing mDLs provides a foundation for secure offline verification and controlled data sharing, making them a likely component of future integrated digital identity frameworks.

Barriers to Global Adoption

To achieve the same universal acceptance as ICAO-compliant travel documents, digital IDs require standardized data models and shared verification frameworks.

Currently, however, systems like the EU’s eIDAS remain regional, and interoperability across countries is limited. Most digital wallets today are still government-backed and function independently.

As highlighted in Regula’s 2024 survey, the absence of a unified global vision for digital wallets remains the biggest obstacle. Until that changes, physical IDs will continue to coexist with digital ones.

The Continuing Role of Physical IDs

Even in a digital-first world, traditional verification steps remain critical. To issue a digital ID, users still need to present a physical document, and often, undergo biometric checks.

In remote scenarios, liveness detection ensures that selfies and ID photos are genuine, linking physical identity proofing with the digital ecosystem.

Ultimately, digital IDs and advanced verification solutions like Regula’s bridge the gap between the physical and digital worlds, helping businesses and governments build a safer, faster, and more inclusive identity future.