Digital ID Verification Spending to Exceed $26 Billion by 2029

A new study from Juniper Research has found that spending on digital identity verification checks will grow by 74%, from $15.2 billion in 2024. The growth will be attributable to new solutions that look to reduce the friction of digital identity verification checks. The study identified the rising usage of behavioral biometrics as a key technology that will enable digital identity verification vendors to achieve this by more efficiently detecting potential fraud.

The report predicts that behavioural biometrics in particular will detect anomalous user behaviour for device inputs such as keystrokes and screen swipes to identify fraudsters. In turn, this enables digital identity verification vendors to detect fraudulent activity earlier and more efficiently. “Behavioural biometrics are functional tools that empower businesses to solidify their defense systems, without negatively impacting user experience by adding additional points of friction in the process,” added report author Thomas Wilson.

In addition to behavioral biometrics, the study anticipates that the integration of self-sovereign principles through blockchain will enhance the security and privacy of verification. This will be achieved in highly regulated sectors such as healthcare and financial services by gifting users control over what information is shared and with whom.

The ‘Electronic Identification, Authentication, and Trust Services’ (eIDAS2) regulation is ushering in a massive change in the EU, with interoperable digital identity wallets being offered to all citizens by May 2026. The research recommends that vendors adhere to digital identity standards by working with decentralized databases to maximize the security and privacy of user information.