Drivers in California will soon be able to share their California driver’s licenses and state IDs with an iPhone and Apple Watch

Part of California DMV’s mDL pilot program, Apple Wallet will soon be offering Californians a secure, private, and easy way to add their driver’s licenses and state IDs to Apple Wallet. This makes presentation seamless with built-in security of the iPhone and Apple Watch, enabling you to travel quickly and to securely verify your age or identity at a government or business location.

Users of the new feature will be able to present their ID via their iPhone or Apple Watch in person at select TSA security checkpoints and businesses, as well as in select apps to verify their age or identity.

Security and Privacy Features

When adding an ID to Apple Wallet, the state-issuing authority receives only information they need to approve or deny adding the driver’s license or state ID to Apple Wallet. When presenting a driver’s license and state ID in Apple Wallet, only the information needed for the transaction is presented, and users will need to review and authorize using Face ID or Touch ID before the information is shared. Users do not need to unlock, show, or hand over their device to present their ID.

The user’s ID information is encrypted and stored only on their device, so anyone else, including Apple, cannot access it unless a user chooses to present it. Apple and the state-issuing authority do not know when or where or with whom a user presents their driver’s license or state ID, and Apple doesn’t see or retain any presentment information that can be tied back to a user. If a user misplaces their iPhone or Apple Watch, they can use the Find My app to lock their device and help locate it, or remotely erase it.

Enabling Consumer Purchases From Merchants by Just Tapping Their Phones Together, Apple’s Tap to Pay Also Works with Contactless Credit Cards

“Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone.”

— Jennifer Bailey, Apple's VP of Apple Pay and Apple Walle

What is Tap to Pay?

Initially revealed during the second iOS 15.4 developer beta, Tap to Pay is a new feature from Apple that turns compatible iPhones into payment terminals without additional hardware requirements. Tap to Pay simplifies financial transactions on mobile devices without requiring other hardware like Square’s dongle to initiate contactless payments via iPhones.

Currently, Tap to Pay supports consumer purchases directly with businesses only and does not support person-to-person payments. Using Tap to Pay, a consumer places an iPhone or Apple Watch near the business iPhone to complete payment. Transactions are secure, private and use NFC technology.

Previously in 2020, Bloomberg reported that Apple had acquired a startup Mobeewave that was building out this technology. Fast forward to today, where Apple has confirmed the feature and is rolling it out. Tap to Pay is Apple’s latest financial innovation. It joins a coterie of highly successful services such as Apple Pay, a contactless payment service, Apple Pay Cash, a peer-to-peer payment service, and Apple Card, a credit card specifically designed for use on the iPhone in collaboration with Goldman Sachs.

Highlights:

Contactless payments on mobile devices
No additional hardware requirements
Employs NFC technology
Takes payments from contactless credit and debit cards and other digital wallets
Accepts Apple Pay, Visa, American Express, Mastercard, and Discover
Currently available for US markets, consumer to business

What do you need for Tap to Pay?

Initiating Tap to Pay only requires two iPhones — one from the consumer and one from the business enabled to accept Tap to Pay contactless payments and a supporting payment platform, available via an iOS app. A consumer can buy from a company by tapping the two iPhones together.

Tap to Pay supports iPhone XS and later models. The first payment platform to use Tap to Pay is Stripe, now available through the Shopify Point of Sale app. Rollouts of other payment platforms will probably occur soon. Apple has also shared that the new feature will support all EMV contactless payments, including Google Pay.

How does Tap to Pay work?

When the merchant and customer are ready to checkout, the merchant will ask the customer to hold an iPhone or Apple Watch by the merchant’s iPhone to pay. Payment options include Apple Pay, their contactless credit or debit card, or another digital wallet near the merchant’s iPhone. Payment occurs seamlessly, securely, and privately via NFC technology.

By eliminating hardware, a business of any size - whether it is a freelancer, solo entrepreneur, small business, or big business -can process financial transactions at any time, anywhere. In addition, today, Apple Pay is also accepted by over 90 percent of American retailers. Therefore, any business of any size can use this feature in the upcoming months as the technology rolls out to the App Store in the spring and becomes available at major retailers, payment platforms, and Apple Store locations in the US this year.

“Whether you’re a salesperson at an internet-first retailer or an individual entrepreneur, you can soon accept contactless payments on a device that’s already in your pocket: your iPhone. With Tap to Pay on iPhone, millions of businesses using Stripe can enhance their in-person commerce experience by offering their customers a fast and secure checkout.”

— Billy Alvarado, Stripe's Chief Business Officer

Tap to Pay protects payment data with the same technology Secure Element employed by Apple Pay. Apple also does not receive any information about the details of what consumers are purchasing.

When is Tap to Pay available?

Tap to Pay is currently available to developers via iOS 15.4 beta and is expected to be released to the public this spring with iOS 15.4. Initially, the feature will be available only in the United States.

What does this mean for Square and its Dongle?

Tap to Pay enables businesses to accept payments from customers without the need for additional hardware, turning the iPhones into point of sale devices themselves. Given its efficiency and ease of use, Tap to Pay challenges Square with its ubiquitous dongle, effectively eliminating the need for Square’s additional hardware to process payments.

Apple Wallet Now Offering California residents Secure Way to Present IDs