The pandemic-induced explosion in e-commerce starting in 2020 has been well documented, along with the fact that growth has continued despite fewer people living under restrictions. That has made verifying the identity of digital customers paramount for businesses, as fraudsters use the record number of transactions to hide increasing activity.
As a result, providers of digital identity solutions are seeing record sales, according to a new report from Juniper Research. The U.K.-based consultancy reported this week that revenue for digital identity vendors will surpass $53 billion by 2026—up from $26 billion last year. Establishing trusted online identities has become a priority for e-commerce merchants, which is reflected in the surge digital identity vendors are experiencing.
“Digital identity verification tools have become more critical across a broader range of industries than ever,” said Damla Sat, co-author of the research report. “Developing effective user experiences for different verification scenarios will be important for realizing digital identity’s potential.”
The report ($) also found that the lack of a national identity program has put the United States behind other countries in implementing digital identity technology. Juniper predicts the U.S. will account for just 7 percent of global digital identity revenue in 2026.