Apple Wallet Updates Allow Recurring Payments and ID Verification for Businesses

Apple recently revealed two major updates to Apple Wallet, along with other features at its Worldwide Developers Conference. The upcoming iOS 17, available this fall, will allow users to set up recurring payments with Apple Cash, and businesses will be able to accept IDs stored in Apple Wallet.

These developments add to the continued expansion of digital IDs in Apple Wallet across the United States. Several states, including Arizona, Colorado, Georgia, and Maryland, now support digital versions of government-issued IDs on iPhone devices. Apple has also announced plans for other states, including Hawaii, Mississippi, Ohio, Puerto Rico, Connecticut, Iowa, Kentucky, Oklahoma, and Utah.

Until now, the adoption of digital IDs had limited use cases, mostly confined to specific TSA checkpoints and lanes at participating airports. However, the ability for companies to verify the age of users through the digital IDs stored in Apple Wallet is expected to accelerate its adoption.

With the arrival of iOS 17, businesses will be able to accept IDs in Apple Wallet without the need for additional hardware, streamlining processes like ID verification for alcohol purchases or ID verification for car rentals. Establishments with age requirements, such as bars and nightclubs, are also likely to be interested in adopting this feature.

To use the service, iPhone users simply hold their device or Apple Watch close to the store’s iPhone to view the requested information. Users will then authenticate and consent using Face ID or Touch ID to share their data with the business. The process mirrors how the TSA currently operates with digital IDs in Apple Wallet, where identifying information is transmitted securely through encrypted communication between users’ devices and the ID reader. Biometric authentication ensures that only the person who initially added the identity document can present it in the Wallet.

Apple follows ISO 18013-5, which uses Near Field Communication (NFC) to establish a secure Bluetooth connection between users’ iPhones or Apple Watches and the ID reader. The company also offers two APIs for businesses, developers, and organizations that require varying degrees of access to identity and age verification.

The first is a view-only API, which allows the requester to access limited information such as name, portrait, or age for view only. The other API, called the Data Transfer API, requires special permission from Apple and allows companies to store more detailed identification information from a driver’s license or state ID, such as the driver’s license number or address . The company or organization only receives the information necessary for its specific identity verification purposes, and is responsible for the storage and retention of the data.

In addition to Apple Wallet updates, Apple Cash will allow users to set up weekly, biweekly, or monthly payments to other recipients. Users will also be able to automatically top up their Apple Cash balance when it runs out. These features will be available with iOS 17 and watchOS 10 software releases in late fall.

These advances could improve the integration and adoption of digital IDs thanks to the compatibility with platforms like Apple Wallet and the AppMaster.io no-code platform. This could result in greater convenience and profitability for both consumers and businesses.