We proudly announce that our company has been featured in The Paypers article titled “The market opportunity for reusable identity.” Authored by Jennie Berry, President of Liminal, the article explains how the digital identity space is rapidly transforming towards consumer-centric solutions that enable services beyond initial onboarding and Know Your Customer (KYC) processes. In today’s world, consumers are managing multiple one-to-one online relationships with different service providers, which results in cybersecurity hygiene that prioritizes convenience over security.
The current infrastructure of digital identity was not designed for the rise of digital consumers, leading to the non-interoperable identity and payment tech stacks for e-commerce transactions. As a response, companies have adopted single-sign-on and social login options to federate identities to cloud applications. However, digital identity is still broken, leading to fraud, identity theft, data breaches, KYC challenges, and cybersecurity vulnerabilities. This affects both companies and consumers, with media and e-commerce platforms setting the new standard in consumer expectations.
The article highlights key ideas including:
- Redesigning One-to-One Relationships: To improve the digital identity infrastructure, we must redesign the one-to-one relationship of consumer-to-account. The transition to N:N (many-to-many) reusable digital identities eliminates the risks posed by centralized databases filled with personal data collected through repeated onboarding processes.
- Government-Backed Electronic Identification (eID) Schemes: eIDs have been gaining traction in the last five years, and a variety of use cases are driving even more demand, including identity verification and KYC, document verification, identity proofing biometric authentication, and fraud prevention.
- Critical Milestones in Facilitating Global Transition: The maturity of private identity ecosystems, enhanced interoperability, and public-private partnerships are critical to facilitating this global transition. The global market size for reusable identity is projected to reach USD 266.5 billion by 2027, with a Compound Annual Growth Rate (CAGR) of 68.9%.
The shift towards reusable identity is a step in the right direction toward a more secure and consumer-centric digital identity infrastructure. As the world becomes more digital, the need for efficient, secure, and user-friendly digital identity solutions will continue to grow. The critical milestones to facilitate this global transition include the maturity of private identity ecosystems, enhanced interoperability, and public-private partnerships. All stakeholders must work together to explore ways to improve the consumer’s digital identity while ensuring data protection and privacy.
