Digital identity verification is a cornerstone of online commerce and fraud prevention. If you know that the person on the other end of a transaction is who they say they are, then all parties can proceed safely. Spending on technology used by merchants and banks to verify digital identities will grow from $9.4 billion globally this year to nearly $17 billion by 2026, according to a new report from Juniper Research.
The report, Digital Identity Verification: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2026 ($), found that the global volume of digital identity checks will more than double from 45 billion per year in 2021 to 92 billion within five years.
Banks will lead the way, accounting for 62 percent of the increased spend, but online merchants, which are liable for fraud in card-not-present channels, will likely be part of the surge of investment in this technology.
“Digital-only banks have shown that fully digital Know Your Customer can work and is very engaging for the user, therefore the pressure is on for traditional banks to deploy new identity verification services,” said Vladimir Surovkin, the report’s co-author. “Managing this transition quickly, and getting the user convenience/security balance right will determine overall success.”