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Apple to Pay for Digital ID Rollouts of Users in Participating States
15 Nov, 2021 / 01:33 pm / Reeny Joseph

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Apple will soon let users in participating states digitally store their driver’s licenses or state IDs on their iPhone’s wallet, but according to a report by CNBC, the initiative will be partially funded by the states — and their taxpayers.

CNBC got a hold of contracts signed by Georgia, Arizona, Oklahoma, and Kentucky, and found that Apple will maintain tight control over its deployment. It reports that Apple gets “sole discretion” over a number of aspects of the program, including its device compatibility, the service’s launch date, states’ marketing campaigns, as well as how states report on the initiative's performance.

The contract also says that each state will have to “allocate reasonably sufficient personnel and resources to support the launch of the Program on a timeline to be determined by Apple.” This includes testing out the service on different types of Apple devices “in accordance with Apple’s certification requirements.”

States are also responsible for promoting the digital ID service to citizens, as well as encouraging its adoption among members of the federal and state government, including local police and the Internal Revenue Service. State agencies are required to “feature the Program in all public-facing communications relating to Digital Identity Credentials,” which is subject to Apple’s review and approval.

The contract absolves Apple from any discrepancies in its verification system, stating: “Apple shall not be liable for any Verification Results, and Agency acknowledges that all Verification Results are provided ‘AS IS’ and without any warranty, express, implied or otherwise, regarding its accuracy or performance.”

Despite being an Apple-led program, taxpayers are footing the bill to roll out this single-platform digital ID program in their states — even if they don’t have an iPhone. The contract clearly says “except as otherwise agreed upon between the Parties, neither Party shall owe the other Party any fees under this Agreement,” meaning that the participating states will be funding its promotion and adoption using taxpayer’s tender.