Today, we’ll show you how ID providers can expand their addressable market by creating a new ecosystem of verifiers.
As fraud rates rise, industries not legally required to perform ID checks now want to verify users’ identities. However, they hesitate, fearing added complications and delays in their onboarding processes.
This hesitation creates an opportunity for ID providers to offer a frictionless, reliable verification experience, meet this growing demand, and expand their market reach.
Unfortunately, many ID providers miss this opportunity because they can’t leverage verified data across multiple companies, forcing end-customers to undergo the verification process from scratch each time they sign up for a new service.
Decentralized Reusable ID enables end-customers to reuse their verified ID data across the ID provider’s partner ecosystem, allowing instant sign-ups and tapping into a new market eager for frictionless verification processes.
Here’s how 👇
Why ID providers can’t leverage verified ID data between companies
Currently, end-customers must undergo ID verifications from scratch for every service they sign up for, even if these services use the same ID verification provider. This is a legal requirement placed upon service providers.
This involves repeatedly inputting personal details, taking pictures of driver’s licenses, and performing liveness checks.
Such repetitive steps frustrate users and lead to significant drop-offs and reduced conversion rates, which in turn lead to missed business opportunities.
This friction also limits the total addressable market for ID providers.
So why can’t verified ID data be reused between companies?
The main issue is data storage and consent to reuse that data.
To enable reuse, someone must store this personally identifiable information and ensure its safety while the end user must give their consent to it being used.
However, ID verification companies and their clients are hesitant to take on the burden of storing PII, and rightly so. Storing PII is a major liability, with high costs for securing and managing the database.
How to reuse verified ID data and reach a new addressable market
Decentralized Reusable ID technology solves the PII storage and consent challenge by allowing end-customers to store their verified ID data locally on their mobile devices.
Using this technology, an ID provider can bring different sets of high-quality verified data into a single, tamper-proof, verifiable ID credential.
The end-customer can then easily share the credential with other companies in the ID provider’s ecosystem, bypassing repeated data entry and physical document collection.
Here’s how it works
1. Setup: The ID provider connects a Reusable ID API to their existing system and invites their Issuers (i.e. Company A) and Verifiers (i.e. Company B) to its Ecosystem.
2. Initial Verification & Credential Issuance: The end-customer completes the usual identity verification process with Company A. The Reusable ID API works invisibly in the background to package this verified ID data into a tamper-proof Reusable ID credential.
The tamper-proof nature of this credential (made possible by cryptography) assures verifiers (other companies verifying this data) that the data within it was not modified or corrupted.
3. Storage: This credential is stored in Company A’s existing mobile app, locally on the end-customer’s phone. This ensures that end-customers manage and store their own data, eliminating the need for companies to store PII and the associated liabilities.
4. Reusing Credentials: When the end-customer signs up with Company B, a partner/client of the same ID provider, they’ll see an option to share their credentials. Similarly to the “Google Sign In” process they’re used to, they tap a button on their phones, and they’re in.
5. Instant Verification: The sign-up process becomes immediate because the data has been pre-verified and is trustworthy. That identity credential will allow the end-customer to open up new accounts as long as they are within the ID provider’s network of partners.
Enabling end-customers to bypass repeated data entry and physical document collection leads to quicker onboarding, reduced frustration, and fewer abandonments, thereby increasing conversion rates and revenue for the ID provider’s clients.
Offering a reliable ID verification solution that does not impose friction will allow ID providers to expand their addressable market to a new ecosystem of verifiers.
Does your ID provider have a network of clients that could benefit from consuming verified ID data from each other to speed up customer onboarding? Socure is using our Reusable ID platform to do just that. Consider joining us for a live demo on a call to learn how Reusable ID can fit your use case.
Or, if you're not ready yet, check out these demo recordings.
