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Mobile driver’s licenses (mDLs) are poised to redefine both physical and digital interactions. They’re far more secure than traditional licenses, offer privacy-preserving features, and can be used in various scenarios, ranging from merchant age verification and secure registration to seamless airport check-ins.
The stage is set for mDLs to become an integral part of our lives, globally and across diverse industries. Standards have been developed by leading stakeholders, integrations are streamlined and legislation efforts are advancing. mDLs will quickly unlock benefits and create unparalleled opportunities in scalable networks where businesses, governments and end users can interact with confidence.
Now is the time to act. Organizations that invest in the infrastructure to support mDLs today will not only accelerate adoption but also position themselves as leaders in this paradigm shift.
What is an mDL, really?
An mDL is often described as a digital version of a traditional physical driver’s license, held on a mobile device. But this overlooks much of what makes mDLs’ potential so high:
The potential for transformation, and the associated benefits, are limited only by our own thinking and imagination — much of which is shaped by the challenges of today.
For example, identity fraud causes billions of dollars in losses to financial institutions, and mobile driver’s licenses have the potential to directly address this problem. As the Secure Technology Alliance (STA) notes in their whitepaper Building Trust and Accountability in Digital Financial Transactions with the Mobile Driver’s License, “The lack of robust and secure digital identity verification not only exposes Financial Institutions (FIs) to significant fraud risks, but it also creates considerable customer friction and undermines customer trust—an essential element in the relationship between FIs and their clients.”
Or consider the common need to prove one’s age (e.g., to purchase an age-restricted item or to access an age-restricted facility). With a traditional license, the user has no control over what information is disclosed and is then at the mercy of the relying party’s data security and sharing policies. With an mDL, the user can disclose only the minimum information needed. The relying party also benefits, as they no longer have to store sensitive information that makes them a target for hackers and that is subject to data governance obligations.
Arguably, the greatest potential for mobile driver’s licenses isn’t solving existing problems — it’s enabling new possibilities.
Convenience is the killer app
Much of the discussion around mDLs focuses on security and privacy (and rightly so), but history has repeatedly hammered home the lesson that convenience really is the killer app.
Here’s how renowned author on digital financial and verification services David G.W. Birch described the situation in a recent conversation with MATTR CPO Luke McIntyre: “For consumers, those aren't security technologies — they're convenience technologies. We see these things in a security context, but actually, those technologies deliver convenience to consumers — and that's how we get these things moving forward.”
Trust networks and mDLs
From the perspective of an everyday user, as convenient as it may be - an mDL is only as useful as the number of high-value interactions in which it can be used. The more scenarios in which it can deliver convenience and security — from healthcare to financial services to social media — the more users will come to view it as an essential tool, rather than a niche feature.
Like many past technologies who crossed the chasm into mainstream adoption, the solution relies on establishing networks. A network effect will kick in once the entry barrier for relying parties to accept mDLs is reduced. As more relying parties accept them, consumers will realise mDLs are getting more useful. As consumer adoption grows, the benefits for relying parties increase… and so on, in a virtuous cycle. When this unfolds, it will happen swiftly and decisively. As shown in “Revenge of the Tipping Point”, once a technology reaches 30% adoption, it will rapidly move to 90% and above.
Consider the rollout of contactless payment systems. Initially, consumers were hesitant to adopt contactless cards or mobile wallets because few merchants accepted them, and merchants were hesitant to invest in the infrastructure because there weren’t enough consumers using the technology. What changed the game was the emergence of established payment networks like Visa and Mastercard, which acted as trust anchors. They simplified the process for merchants to join the network and assured consumers that their payments were secure and universally accepted. Once Visa and Mastercard entered the picture, widespread adoption progressed at an unprecedented pace, rapidly reshaping the payments landscape.
In the context of mDLs trust networks will operate in a similar way:
“When paradigms change, the world itself changes with them.”
Using a physical driver’s license will soon feel like watching a tourist unfold a giant paper map in the middle of a city instead of using their phone, or a business refusing digital payments and insisting on exact change in cash—quaint, but wildly inconvenient.
In his landmark book, The Structure of Scientific Revolutions, Thomas Kuhn asserted that “When paradigms change, the world itself changes with them”. The move to mDLs is a paradigm shift, and really is going to change the world. We are witnessing the global landscape around us changing, setting the ground for mDLs to become so common — and such an integral element of everyday experiences — that we’ll wonder how we ever lived without them.
mDLs are no longer a speculative concept; they are being 'standardized' into the global identity ecosystem. As the STA notes in their whitepaper, the “National Institute of Standards and Technology (NIST) is actively incorporating mDLs into their version 4 of NIST 800-63 Digital Identity Guidelines and collaborating with FINRA and FDIC regulators to standardize the use of mDLs to meet regulatory requirements.”
Relying on these standards, vendors (including MATTR) have built proven products for both mobile driver’s licenses specifically, and mobile documents more generally, that integrate digital credentials capabilities into existing technology and solution stacks.
Paving the way forward
The world is on the cusp of a major paradigm shift. As with all periods of transformation, there will be winners and losers. Organizations that act now to embrace mDLs and trust networks are positioned to lead. This is a unique moment in time – powered by a recent US executive order, we expect the number of US states issuing mDLs to double and reach over 30 states by the end of 2025. This is a chance to not just adapt but to innovate and define the future of secure, high-assurance digital interactions.
Becoming a market leader during this period of transformation means taking proactive steps today. As mDLs adoption rates are expected to spike in 2025 and trust networks gain momentum, those who invest in building the necessary infrastructure and partnerships will capture significant benefits: reduced fraud, streamlined processes, and enhanced customer experiences. Those who wait risk being left behind as competitors and forward-thinking organizations set new standards and claim prominent market shares.
At MATTR, we’re here to help you get started. Whether you’re looking to implement mDL capabilities or build a trust network, our proven solutions provide everything you need to accelerate adoption and unlock the full potential of these technologies.
Learn more about how MATTR can support your journey:
- Explore our Trust Network solutions
- Discover our Mobile Driver’s License offerings
- Contact us to start building your trust network
The future of digital credentials is here. Will you be leading the charge, or watching from the sidelines? Take action today to secure your place at the forefront of this transformation.
