Digital IDs in pubs and clubs: The future of age and identity verification

The proposal is to make use of emerging verifiable credentials technology which has significant benefits in terms of both usability and privacy. Essentially, verificable credentials allow identity providers to issue a digital credential into a smartphone wallet – in much the same way as airlines issue a boarding pass – which can then be digitally verified at the point of use. So for example, the credential might make the claim ‘I am 18’, which can then be digitally verified with the credential issuer without revealing any underlying personal data – for example the end user’s name or date of birth.

For many, this is an exciting leap toward a digital-first society. It promises to streamline experiences across public spaces—no more fumbling for ID at pubs and clubs. It also represents one of the first real world use cases with the potential for mass adoption which could help to drive verifiable credential technology into the mainstream. This is very significant, as the alternative approach to digital identity verification – which has largely been resisted up to now in the UK – relies on centralized systems which store personal data sitting in large, vulnerable databases. Verifiable credentials completely removes this issue – massively enhancing privacy in digital transactions.

Traditional means of digital identity verification rely on centralized databases to store sensitive information. While this approach simplifies management, it also introduces significant risks. Centralized hubs of data create attractive targets for cyberattacks. According to IBM’s latest research, the average cost of a data breach in 2023 reached $4.45 million globally—a stark reminder of the dangers presented by these systems.

Further, centralized systems place control over personal data in the hands of organizations, not individuals. This means users often have little say in how their information is managed, stored, or shared. For identity professionals, it’s clear that this one-size-fits-all approach struggles to align with the increasing demand for privacy-conscious, user-centric solutions.

Verifiable credentials offer an innovative alternative to traditional centralized systems. These digital credentials are stored securely on a user’s smartphone in encrypted digital wallets. Unlike centralized databases, users remain in charge of their data, deciding who gets access and how much information is shared.

Take, for example, a young person needing to verify their age at a bar. Instead of presenting a driver’s license with sensitive personal details—such as home address or full date of birth—they could simply share a verifiable credential that proves their age and nothing more.

This precision reduces the chance of unnecessary data exposure and makes the process simpler, quicker, and more secure. Additionally, because there is no centralized repository to target, verifiable credentials minimize the attack surface for cyberthreats and drastically mitigate the risks of breaches.

At ProofID, we focus on digital identity solutions that emphasise security, autonomy, and efficiency. With verifiable credentials, governments and trusted institutions can issue identity documents, such as passports or driver’s licenses, directly to an individual’s digital wallet. This empowers users to securely prove who they are without needing to hand over excessive personal information or rely on centralized frameworks.

A successful example of this approach is Colorado’s myColorado app, developed in partnership with Ping Identity and supported by ProofID. This app allows residents to display verified digital versions of their driver’s licenses directly on their smartphones, offering both convenience and security. Such decentralized systems have broad applications, from healthcare to education to regulated retail transactions.

The trend toward decentralisation is gaining momentum globally. Gartner predicts that by 2027, over 50% of the world’s population will own at least one verifiable credential in a digital wallet. The UK’s current push for digital identity adoption could open doors to a similarly successful decentralized model—with even greater emphasis on privacy.

Verifiable credentials are not just about proving age in social settings. Their versatility makes them valuable tools across numerous sectors. From universities issuing digital student IDs to businesses verifying employee credentials for onboarding, these credentials streamline processes, ensure accuracy, and maintain the highest levels of security.

A retail environment, for instance, could use verifiable credentials to automate age verification at self-checkouts. Meanwhile, banks could adopt them to accelerate customer verifications during account openings, eliminating paperwork-intensive Know Your Customer (KYC) requirements.

To achieve this, it’s crucial to adopt clear, interoperable standards like those developed by the World Wide Web Consortium (W3C). Aligning across industries and governments ensures that these credentials are secure, easy to use, and accessible worldwide.

As promising as these systems are, challenges remain. Addressing the digital divide is essential—solutions must also cater to those without access to smartphones or those uncomfortable with new technologies. Ensuring fallback options, such as physical ID cards, remains part of inclusive deployment strategies.

Additionally, building public trust in verifiable credentials is key. Demonstrating their safety and effectiveness through initiatives like myColorado and the UK’s pilot schemes will help overcome skepticism and foster adoption.