Similar thing happened to Valve; people were trading gun skins, and regulators fined them for not having AML/KYC controls because the state argued "the business didn't do enough to stop money laundering."
This trickles out to porn companies (and the vendors that use them for identity verification), and implies that they need to store this data to prove that they didn't delete it to help terrorists.
Basically, if you only want to verify age, you open the app in age verification mode. It will display your picture and a qr code but not your address and other sensitive info typically present on a drivers license. The participating* alcohol vendor then scans the qr code which only contains data like "over 21" and some sort of verification that the qr code isn't forged. I'm a bit hazy on how this last bit works but it really all pivots on how this bit is implemented. Could be good for privacy or a total nightmare.
*there are only 3 locations participating in this test phase, afaik
1. There's a provider that already has your data (it could be the government, a bank, a phone carrier etc). If more than one provider is supported, there's a list of trusted providers somewhere.
2. Whenever a website needs an age check, it asks you to authenticate with one of the trusted providers. The provider gets a challenge (a random string).
3. If you authenticate successfully, the provider uses their public key to provide a cryptographic signature of the challenge. This signed challenge is then transmitted back to the website.
In a more advanced version of this system, the website also provides a boolean expression, like `country_of_residence not in forbidden_countries && (age > 21 || (age > 18 && country_of_residence != "us"))`, and providers promise not to return successful responses for users who don't fulfill the expression criteria.
Just one example: https://okcfox.com/news/local/cyber-security-experts-be-wary...
Does anyone know if Mastercard gets any data relating to whats actually being purchased? Or does the store get a globally unique ID to associate with every purchase made with a specific card?