Biometrics Lead to Advanced Digital IDs and Wallets

Published Date : 8/2/2025 

Biometrics are revolutionizing the way we handle identity documents, from travel to public services and online age verification. Legacy IDs are being replaced with more sophisticated digital credentials, enhancing security and convenience. 

Biometrics are the bridge to a new generation of identity documents and digital credentials, transforming various use cases such as travel, public services, and online age checks. As credentials are required to perform different tasks and complete transactions in new ways, legacy “dumb” IDs are being traded for more purpose-built digital IDs and identity documents. Countries like the UK, Nepal, and New Zealand are leading the way in this transformation, with significant developments and initiatives underway.

The UK is ending its passport contract with Thales early to replace it with one that includes more types of credentials. This move is part of a broader strategy to modernize travel documents, particularly with the introduction of Digital Travel Credentials (DTCs). The new contract, which could be worth up to $533 million, will add DTCs to Biometric Travel Documents (BTDs) for visas and immigration, enhancing the security and functionality of travel documents.

Nepal has been cleared to proceed with new contracts for biometric passports with Mühlbauer and Veridos following a Supreme Court ruling. The court dismissed a legal challenge by Idemia Smart Identity, which alleged irregularities in the procurement process. This decision paves the way for Nepal to enhance its passport security and efficiency.

New Zealand has launched a Request for Proposal (RFP) for a platform to issue digital credentials into the NZ Government Digital Wallet. The platform will support a range of credentials, including DTCs, and is expected to be delivered as a managed service. This initiative is part of New Zealand’s broader digital government strategy, which aims to improve the delivery of public services through secure and convenient digital means.

Ethiopia’s digital government transformation has made significant progress, with over 900 public services now available online through the MESOB service delivery platform and the national digital ID, Fayda. Access to these services requires connectivity, which the country’s telecommunications providers are working to improve. The Ministry of Innovation and Technology is also focusing on data interoperability to ensure seamless service delivery.

Digital government transformation must include robust credentials and multi-factor authentication (MFA) to secure systems and prevent cyber breaches. The Canadian city of Hamilton learned this lesson the hard way when its $5 million (US$3.6 million) cyber insurance claim was denied due to insufficient security measures. This highlights the importance of implementing strong security protocols to protect sensitive data and services.

In the U.S., efforts to reduce reliance on manual comparisons with physical passports for airport security and immigration checks are ongoing. The Transportation Security Administration (TSA) is increasingly using face biometrics for these purposes, but the Algorithmic Justice League has raised concerns about the program’s rollout. Many travelers report not being informed of their opt-out rights and facing ridicule from agents when they choose to opt out. Some U.S. lawmakers are also pushing back against the program.

The U.S. federal government is also facing criticism for its expanding use of biometric surveillance. The Immigration and Customs Enforcement (ICE) agency is expanding its ankle bracelet program, raising privacy concerns. Additionally, the FBI has awarded a $128 million contract to Leidos to expand its Next Generation Identification (NGI) biometric and criminal history database, further intensifying surveillance capabilities.

New Orleans has introduced a municipal ID card program that includes privacy protections to allow residents to access local services without sharing data with ICE. This initiative aims to limit the risk of exposing individuals to enforcement actions and enhance community trust.

As the use of credentials to prove attributes rather than identity becomes more prevalent, the UK’s Online Safety Act (OSA) has prompted a significant traffic spike for Yoti, a leading age verification provider. However, concerns have been raised about the law’s implementation, particularly regarding the lack of liability protection for platforms accessed via VPNs. The Association of Verified Platforms and Applications (AVPA) has pointed out that children do not accidentally download VPNs to access adult content.

In response to the OSA, some platforms like Itch have removed adult content to maintain good standing with payment processors like Stripe and PayPal. This decision has sparked debates about the potential for censorship and the role of payment processors in dictating online safety compliance.

As biometric and digital identity technologies continue to evolve, it is crucial for stakeholders to balance innovation with privacy and security. The ongoing developments in the UK, Nepal, New Zealand, and other countries highlight the potential and challenges of this transformation. Stay tuned for more updates and insights from the biometrics and digital identity community. 

Frequently Asked Questions (FAQS): 

Q: What are Digital Travel Credentials (DTCs)?

A: Digital Travel Credentials (DTCs) are digital versions of travel documents that can be stored on a mobile device. They enhance security and convenience by allowing travelers to verify their identity and travel documents electronically.

Q: Why is the UK replacing its passport contract with Thales?

A: The UK is replacing its passport contract with Thales to modernize travel documents and introduce Digital Travel Credentials (DTCs), enhancing the security and functionality of travel documents.

Q: What is the significance of Nepal's Supreme Court ruling on biometric passports?

A: Nepal's Supreme Court ruling cleared the way for the country to proceed with new contracts for biometric passports with Mühlbauer and Veridos, dismissing a legal challenge by Idemia Smart Identity.

Q: What is the purpose of New Zealand's digital credential issuance platform?

A: New Zealand's digital credential issuance platform aims to issue a range of credentials, including Digital Travel Credentials (DTCs), into the NZ Government Digital Wallet, improving the delivery of public services through secure and convenient digital means.

Q: What are the concerns raised by the Algorithmic Justice League about the TSA's use of face biometrics?

A: The Algorithmic Justice League has raised concerns about the TSA's use of face biometrics, particularly regarding the lack of transparency in informing travelers of their opt-out rights and the potential for abuse by agents. 

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