Identity has always been essential to how we access services, prove our age, open accounts, and protect our personal security. But the way we verify identity is changing.
As more of our lives move online, traditional physical IDs like passports and driving licences are beginning to share space with digital identity tools that live on our smartphones. While both serve the same core purpose, confirming who we are, the way they work, the data they share, and the experiences they create are very different.
This article explores the key differences between physical and digital IDs, helping you understand how each works and what to consider as digital adoption grows.
Format and Storage
Physical IDs come in the form of documents or cards. These include passports, driving licences, birth certificates and national ID cards. You typically carry them with you in a wallet or folder, and they must be presented in person when required.
Digital IDs exist in digital form and are accessed through a secure app, file, or system. They can be stored on your smartphone or device and used to prove identity both in person and online. A digital ID isn’t just a photo of your document, it’s a verified identity profile that can be instantly accessed and reused.
Data Privacy and Control
When using a physical ID, you usually hand over the full document, even if the person checking it only needs to see one detail, like your age or your photo. This means sharing more personal information than is often necessary.
Digital IDs allow for what’s called “data minimisation.” For example, if you need to prove you are over 18, a digital ID can display just your age verification, without revealing your full name, date of birth, or address. This gives users greater control over their personal data and reduces the risk of unnecessary exposure.
Where and How They’re Used
Physical IDs are used mostly during in-person interactions, for example, when boarding a flight, proving your right to rent, or opening a bank account. You must have the document with you at the moment of need.
Digital IDs are designed for both physical and digital spaces. They can be used online, for remote identity checks, or in person, by displaying credentials on your device. Because they’re stored digitally, they can be accessed any time, whether you are at home or on the move.
Who Issues Them
Physical IDs are typically issued by government agencies or official institutions. You usually apply, provide documents, and wait for your physical ID to be created and posted to you. If you lose it or change your name or address, you must apply for a replacement.
Digital IDs can be issued by either official bodies or regulated identity providers. In the UK, identity service providers can be certified under the government’s trust framework. Once you pass the necessary verification checks, your digital ID is created and available for use instantly. Updates to your personal information can often be made in real time, from your device.
Security and Safety
Physical IDs rely on features like holograms, watermarks, and official printing methods to prevent forgery. But once lost or stolen, they are difficult to protect. Anyone who finds a physical ID can see, and misuse, the personal information printed on it.
Digital IDs use encryption, biometrics (like facial recognition or fingerprints), and multi-factor authentication. If you lose your device or suspect a breach, you can instantly revoke access, lock your profile, or update your credentials. These built-in tools offer security features that physical IDs simply cannot provide.
Legal Recognition and Acceptance
Physical IDs remain the most widely accepted form of identification across the world. They are used for everything from voting and travelling to employment checks and contract signing.
Digital IDs are increasingly being accepted by both governments and the private sector. In the UK, for example, digital identity is now permitted for right to work and right to rent checks, as well as for DBS identity confirmation. New laws are also being introduced to allow digital ID use for age verification and other high-trust transactions.
Although not yet universal, the legal foundation for digital ID use is growing quickly, supported by formal frameworks and new legislation.
Offering More Choice
There is no one-size-fits-all answer when it comes to identity. Both physical and digital IDs have their place, and people should have the freedom to choose the method that works best for them.
Digital identity offers convenience, control, and new layers of protection. But it should not replace physical ID entirely. Instead, it should sit alongside it, providing more flexible and secure options, especially for the growing number of services that take place online.
Final Thoughts
The shift from physical to digital identity is not just about technology. It’s about making it easier for people to prove who they are, protect their data, and access the services they need, in a way that works for them.
If you’re exploring how digital identity could fit into your life or business, or you’re simply curious about where this change is heading, we’re happy to talk.
Want to understand how digital ID could work for you?
Get in touch with Verifid today
