Passenger growth, AI fraud push digital travel credentials toward tipping point

Digital travel credentials (DTCs) are at a crucial moment in their adoption as the travel industry undergoes profound structural changes, says Indicio. The decentralized identity company identifies three reasons for the shift towards digital passports in its latest industry brief.

By 2050, global air traffic is projected to reach 12.4 billion passengers, according to the International Civil Aviation Organization (ICAO), meaning passenger volume will outpace airport infrastructure. Absorbing this volume will require introducing a more frictionless travel experience with seamless identity verification.

The second reason is the rise of identity fraud enabled by AI-generated documents and deepfake images, which is endangering the current visual and photo-based inspections conducted by border authorities.

“The industry needs a model where identity is cryptographically proven from a verified, trustable source, not visually inspected and stored for cross checking,” says Indicio.

Finally, surveys, such as those from the International Air Transport Association (IATA), show that travelers are ready for DTCs: 78 percent of passengers want to use a smartphone that combines a digital wallet, digital passport, and loyalty cards to book, pay, and navigate airport processes. Three-quarters say they would share biometric data in order to skip passport and boarding pass checks.

Indicio offers a tool for creating digital travel credentials (DTCs) in line with International Civil Aviation Organization (ICAO) standards, which are then stored in a mobile digital wallet as verifiable credentials. The DTC and digital identity can add travel documents such as visas, boarding passes and incentives programs.

Indicio co-developed the decentralized DTC for the Aruba Happy One Pass program with airport technology firm SITA, which is also an investor in the Seattle-based company. The duo is also testing DTCs for the European Digital Identity (EUDI) Wallet.

In its brief, the company explains that most digital identity checks at most airports today are token-based, meaning that operators issue a single-use artifact that expires at the end of the trip. A DTC, on the other hand, is issued once and is valid for as long as the passport is valid.

It is also bound cryptographically to a verified identity, so it cannot be faked, stolen, or used by someone else.

“One issuance supports unlimited subsequent verifications,” the document notes. “The identity assurance is stronger because the biometric is bound at issuance rather than captured fresh. The cost per verification collapses because the operator is no longer paying to re-establish an identity it already created.”

Airlines can also use DTCs for loyalty programs and pre-clearance: Electronic Travel Authorizations (ETAs) and eVisas, which can be bound to a verifiable identity or issued as Verifiable Credentials.

Another benefit is automation, in which an airline AI agent or chatbot can verify a passenger’s DTC and share it with another AI agent. Indicio presented the AI agent capabilities earlier this year, explaining that it complies with ICAO specifications.

The company has been working to implement its decentralized identity verification, data sharing, and reusable Know Your Customer (KYC) solutions in other fields, including secure access management and AI. Last year, it received investment from NEC Corporation’s venture studio, NEC X, which supported its participation in its accelerator program.

Article Topics

AI fraud  |  biometrics  |  digital travel  |  digital travel credentials  |  Indicio  |  reusable digital ID