Digital ID verification spend to exceed $26bn globally by 2029
Growing from $15.2bn in 2024
A new study has found that spend on digital identity verification checks will grow by 74% from $15.2 billion in 2024. This substantial growth will be attributable to new solutions that aim to reduce the friction of these checks.
Juniper Research’s study identified the rising usage of behavioural biometrics as a key technology that will enable digital identity verification vendors to achieve this by more efficiently detecting potential fraud.
The report predicts that behavioural biometrics will detect anomalous user behaviour for device inputs such as keystrokes and screen swipes to identify fraudsters. This enables digital identity verification vendors to detect fraudulent activity earlier and more efficiently.
Digital ID verification is a process that validates an individual’s identity online, often using government-issued documents, biometric data, or other digital identifiers. It enhances security by confirming the legitimacy of an identity in various online transactions, such as banking or e-commerce, helping reduce fraud risks. It’s a vital part of KYC and AML compliance.
Report author Thomas Wilson added: “Behavioural biometrics are functional tools that empower businesses to solidify their defence systems without negatively impacting user experience by adding additional points of friction in the process.”
In addition to behavioural biometrics, the study anticipates that integrating self-sovereign principles through blockchain will enhance the security and privacy of verification. This will be achieved in highly regulated sectors such as healthcare and financial services by gifting users control over what information is shared and with whom.
The ‘Electronic Identification, Authentication, and Trust Services’ (eIDAS2) regulation is ushering in a massive change in the EU.
Interoperable digital identity wallets will be offered to all EU citizens by May 2026. The research recommends that vendors adhere to digital identity standards by working with decentralised databases to maximise the security and privacy of user information.
Hero image: Digital ID verification is a process that validates an individual’s identity online, often using government-issued documents, biometric data, or other digital identifiers. Credit: Susanne Plank
