This represents a rise of 82% over the four-year period. Government-backed digital identities will mainly drive the shift in using digital identity apps. This comes as public institutions aim to replace physical identity documents with third-party apps.
The measure will impact banking and financial services since businesses seek to reduce identity theft and meet increasingly stringent KYC (Know Your Customer) regulations.
GlobalData’s recent report titled “Trends in Payment Fraud” reveals authorised push payment fraud losses reached £811m in 2022 in the UK. That number is expected to grow at a CAGR of 20.5% between 2021 and 2026 since people are increasingly turning to e-commerce.
The Juniper Research also discusses a move towards biometric verification and MFA (Multi-factor Authentication) under a zero-trust model, leaving behind account passwords. This approach is more resistant to traditional hacking methods – e.g. phishing – lowering the risk of data breaches.
Zero trust will be delivered via Single Sign On (SSO). This will allow users to access multiple accounts via a central, secured system.
The use of mobile subscriber identity is critical to SSO. The number of mobile devices using their mobile number for SSO will reach 2 billion in 2027, up from 922 million in 2023.
Research author Michael Greenwood explained: “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.”