The total number of digital identity apps in use will exceed 4.1 billion globally by 2027, nearly doubling from 2.3 billion in 2023.
This 82% growth is expected to be driven by the use of government-backed digital identities to replace physical identity documents as a source of verification for third-party apps, such as banking. The report claims this will be critical to help businesses reduce identity theft and meet KYC regulations.
The finding comes from the latest research report from Juniper Research, ‘Digital Identity: Solutions Assessment, Regional Analysis & Market Forecasts 2023-2027.’
Its report also claims the world is shifting away from passwords and replacing them with biometric verification and multi-factor authentication services through a zero-trust model where identities are authenticated continuously.
This approach is more resistant to traditional hacking methods, including phishing, Juniper claims.
Zero-trust is delivered through single sign on (SSO), which allows a user to access multiple accounts through a central, secured system.
A core aspect of these SSO services is the use of a mobile subscriber identity. Juniper predicts the amount of mobile devices using their mobile number for SSO to reach two billion by 2027, up from 922 million in 2023.
Finally, Juniper stated that the primary competition for dedicated digital identity apps will come from digital wallets, which offer payment functionality alongside digital identity capabilities. As an example, Juniper pointed to some US states where a digital driver license held within Apple Wallets are fully recognised.
Despite the competition, Juniper believes these digital wallets will struggle to monetise identity in the same way they do with payments, due to competition from government-run schemes.
Research author Michael Greenwood said, “Consumers are highly motivated by convenience; making a streamlining of user experience significant for attracting and retaining them. SSO can achieve this, whilst also appealing to security-conscious users.”
Another recent study from Juniper found that the global revenue from embedded payments for embedded finance vendors will reach $59bn in 2027, rising from $32bn in 2023.
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