Businesses will spend nearly $21 billion annually on digital identity verification technology in 2027, according to a new report. That’s up 88 percent from the $11.6 billion that will be spent this year, said Juniper Research in Digital Identity Verification: Key Opportunities, Competitor Leaderboard & Market Forecasts 2022-2027 ($). The U.K.-based technology consultancy said rising fraud will drive the increase.
The technologies employed to verify that online users are who they claim to be varies widely from provider to provider and can include traditional or behavioral biometrics, knowledge-based authentication, checks against various databases or other methods. The Juniper report evaluated 15 vendors in the space and separated them into “established leaders,” “leading challengers” and “disruptors & challengers.”
“There are multiple pathways to identity verification success. There are many different segments and verification types, with no single vendor covering all the solutions,” explained Damla Sat, co-author of the report. “As such, there is still a lot of room for innovation; vendors must focus on building out innovation partnerships and acquisitions that allow them to intelligently orchestrate the most effective verification types for each use case to drive growth forward.”
The report evaluated some names that are familiar to merchants that employ identity verification vendors including Experian, LexisNexis Risk Solutions, Microsoft, Onfido, Socure, Trulioo and others.