Liquid identity verifications surge past 60M as Japan leans into chip-scanning

Liquid has reached the 60 million digital identity verification milestone with its online KYC service, with a surge in verifications driven by the improving maturity of Japan’s digital ID ecosystem.

Verifications performed by Liquid using the IC chip embedded in My Number Cards and driver’s licenses, like those using Japan’s public key infrastructure (JPKI) nearly doubled, growing by 1.8 times to 14 million.

The Liquid eKYC service completes identity verification by authenticating ID documents with a photo or chip scan, and a match against selfie biometrics or JPKI.

Customers using Liquid identity verifications include financial services and mobile communication providers, second-hand retail shops, sharing economy services, matching applications, crypto trading services and Web3-related services, according to the announcement. Big name customers include PayPal subsidiary Paidy, Rakuten Wallet, Binance Japan, Japan Post Bank, Toyota Finance Corporation, NTT Docomo and DocuSign Japan.

The Elements subsidiary offers customers an “IC Omakase Pack” for integrating identity verification. The comprehensive set of tools directs users to the channel with the lowest drop-off rate, guiding iOS users to a web browser to complete verification, while Android users are directed to the Liquid eKYC app. The services also include one for cross-referencing face biometrics to detect fraud across multiple businesses and industries.

Liquid had detected approximately 10,000 suspicious applications using previously collected data, as of this month.

The jump identity verifications based on ID card chip scans is partly attributed to the “Comprehensive Measures to Protect the Public from Fraud” (Note 1) meeting of the Crime Prevention Cabinet last June, Liquid notes. The government has been steadily tightening identity verification, including with the trial and launch of the My Number Card Face-to-Face Verification app last year. The app also reads the IC chips on ID cards, a point of emphasis in Japan following a string of fraud incidents involving forged My Number Cards.

Elements acquired Polarify, a joint venture by partners including Daon, earlier this month, expanding Daon’s footprint in Japan and making Elements the leader in authentication market share in Japan.

Article Topics

biometric authentication  |  digital ID  |  digital identity  |  identity verification  |  Japan  |  KYC  |  Liquid Inc  |  selfie biometrics