iDenfy integrates reusable digital IDs to help businesses avoid onboarding fails

Businesses have long been dealing with a common behavioral issue when clients attempt their Know Your Customer (KYC) onboarding workflow: users start the identity verification process, then realize they don’t have an ID card or passport in their wallet, and abandon it altogether.​

Identity verification firm iDenfy aims to tackle this by enabling users to switch from physical ID verification to verifying themselves through a reusable digital ID of their choice. Its platform’s electronic ID (eIDV) workflow currently supports more than 60 digital ID types, including Swedish BankID, the UK’s OneID and Smart-ID, used in Estonia.​

“Electronic IDs carry the same level of government-backed trust as physical documents, and in many cases, they are even harder to forge,” says the company’s Chief Financial Officer Adomas Vitkauskas. “This is why letting users switch to one inside the same session was the natural solution for iDenfy.”​

iDenfy says it has recorded a 23 percent reduction in verification drop-offs among users since introducing the eIDV workflow. The company is planning further user experience upgrades, including switching to the eIDV workflow when identity verification fails due to poor-quality selfies.​

Research from Fenergo cited by iDenfy shows businesses around the world are spending $72.9 million each year on AML and KYC compliance alone, so abandonment represents an expensive failure.

Lithuania-based iDenfy also says that the solution comes at an important time, as the EU prepares to introduce European Digital Identity (EUDI) Wallets by the end of the year.​

Aside from KYC and KYB systems, iDenfy has been developing its anti-fraud offerings. The company released new tools for e‑commerce and corporate onboarding with an app for Shopify.

Networks and integrations to enable reusable digital IDs are a major industry trend influencing identity verification as discussed in the the 2025 Digital Identity Verification Market Report & Buyers Guide from Biometric Update and Goode Intelligence.

Article Topics

AML  |  biometrics  |  iDenfy  |  identity verification  |  KYC  |  reusable digital ID