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Mobile digital IDs forecast to triple to 1B by 2027

Mobile digital IDs forecast to triple to 1B by 2027

The global number of digital identities held on mobile devices may reach 1.02 billion by 2027, more than triple the 322 million recorded in 2021.

The data comes from ABI Research, which published its Mobile Identities and Derived Credentials market data report at the end of August and is now sharing an extract from it with the public.

“The COVID-19 pandemic set the acceleration of mobile identity technology’s adoption in motion,” explains Lucas Stewart, citizen digital identity analyst at ABI Research. “By solving pain points relating to physical contact in identity applications, the potential implementation of mobile IDs was brought more so to the conversation while also aligning with the trends of growing digitalization strategies from governments.”

According to Stewart, this trend is highlighted by the European Commission’s recent efforts, which aim to further digitalize identities under the eIDAS revision by 2023.

“This marks a significant leap in mobile identities, where potential programs like the coming European Digital Identity Wallet may inspire and emerge, seeing substantial market growth,” Stewart adds.

Mobile identities are also expected to have an increasing role in citizens’ lives in the near future.

“While mobile IDs have been around for a significant amount of time, recent developments in technology and regulation, including the growing trend of the digital wallet form, are set to see the market increase,” says Stewart.

“Looking at this technology applied to the context of digital payment, we can see the successes and how user experience is enhanced by a digital wallet.”

Further, the digital ID expert suggests that billions of identities worldwide still do not have a digital or mobile counterpart.

“Although mobile identity penetration rates remain very low, implementation is feasible in many countries and regions in a narrow timeframe,” according to Stewart. “With the prominence of digital transformation across many areas and industries, digital ID only bears more relevance, and mobile forms of identity will only gain further traction with time.”

The ABI Research report comes days after Onfido published a new survey suggesting increasing adoption of digital IDs across different industries.

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