Biometrics’ convergence with digital identity, wallets sparks resurgence of investment

Biometrics is backing a range of national government programs and technical standards for digital identity in some of the most-read articles on Biometric Update this week. Most welcome, however, is the series of investments in the space, with Anonybit and Prove each raising millions of dollars and Toppan Gravity acquiring a smart card manufacturer to further its market reach. Each is vying for share in a market growing towards mass adoption of digital identities, many of them stored in digital wallets, as explored in a new report from Goode Intelligence.

Top biometrics news of the week

The European Travel Information and Authorisation System, once expected to come online next month, has reportedly been pushed back to May, 2025. The ETIAS delay is related to problems bringing the EU’s biometric Entry-Exit system online. An unnamed EU official thinks the delay may not be the last, either. The UK has opened up the EU Exit: ID Document Check app, meanwhile, to complete the identity document verification stage of the EU Settlement Scheme application process.

Also by May 2025, Germany will require face photos included on ID documents to meet ICAO’s standards to support biometric matching. The move is amongst a set of changes intended to cut down on the risk of fraud, while making border crossings and other processes more convenient for Germans.

The latest legislation tabled to underpin Australia’s national biometric identity verification service is drawing criticism for inadequate privacy protections from the Law Council of Australia and the Human Rights Law Centre. Meanwhile, two of the biggest banks in Australia have begun using ConnectID for digital identity verification through selfie biometrics.

The Gates Foundation is planning to help connect Kenya’s government with technical experts and partners in support of its introduction of the Maisha Namba national digital identity system. The support comes as rights activists and residents of some areas are concerned that the government is backtracking on a commitment to make it easier for people to obtain IDs.

Nigeria’s government has launched a new cash transfer program to ease a transition away from a fuel subsidy, utilizing the country’s biometric Bank Verification Number to manage its distribution. The program, launched on World Poverty Eradication Day, is expected to reach 15 million households.

Anonybit has raised $3 million in an early funding round to build out its technology for privacy-preserving identity management through distributed biometrics storage, and deliver it to new customers and partners. CEO Frances Zelazny tells Biometric Update that the company has established a beachhead in the market and is refining its services based on engagements with partners and end-users. Anonybit’s first investments with the cash in hand are a new CRO and advisory board member.

Prove picked up $40 million in what Tracxn says is a D round, and plans to address new use cases and geographies with its identity verification and fraud-prevention tools.

For those seeking insight into building, scaling and fundraising for tech startups, AnyVision Co-founder Eylon Etshtein discusses his unusual journey and experience at all three in an interview with Alejandro Cremades.

Toppan Gravity has acquired Colombia-based payment card manufacturer Hogier Gartner & Cía. The move could open up the lucrative potential of the Latin American market for Toppan, which has existing partnerships for biometric cards with access control, healthcare and payments applications.

One of many well-received sessions at the Authenticate 2023 conference was a panel discussion on the U.S. government view of FIDO authentication, featuring representatives of Venable, the IRS and GSA, NIST and Guidehouse. NIST and FIDO are already recognizing the value in each other’s standards, and in a subsequent talk, Okta’s Moushmi Banerjee suggested alignment for FIDO’s Authenticator levels and NIST’s Identity Assurance Levels.

A review of NIST’s recent evaluation of biometric presentation attack detection algorithms shows improving market maturity, in the form of low error rates for the leaders in each category, and a distribution of top results that suggests specialties are beginning to emerge. ID R&D, Alice Biometrics, ROC.ai, CyberLink and others topped both the convenience and security sides of the evaluations for particular PAD types.

In the year 2029, there will be 4.9 billion digital identities in use, nearly a third of them held within digital identity wallets, according to the latest forecast from Goode Intelligence. The Digital Identity Report also highlights trends in biometrics, Verifiable Credentials. Founder and CEO Alan Goode tells Biometric Update that the report reflects fundamental shifts in the market that have occurred since 2019.

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Article Topics

biometric authentication  |  biometrics  |  digital identity  |  digital wallets  |  facial recognition  |  week in review