Given that it has now become far more common to purchase goods or sign up to service providers online than in person, the world needs safe, secure and hassle-free methods of identity verification. Achieving this balance is crucial to eliminating fraud, clamping down on money-laundering and halting cyber criminals in their tracks.
While there are a few different methods of online ID verification being explored, the use of a Identity Wallet is one of the most promising for businesses and their customers alike. Here’s a rundown of some of the most prominent advantages of this innovative technology and how it can make things so much easier from both a corporate and consumer standpoint.
At present, signing up to a website or service provider often entails uploading certain documents or sharing sensitive information in order to gain their approval. Much of the time, the user has little control over how this data is shared or stored, even after the introduction of GDPR legislation aimed at improving their data sovereignty.
With a digital ID wallet, the control remains in the hands of the customer at all times. They can select exactly which pieces of information to share with whom and for how long, ensuring they keep a firm grip of the reins throughout their entire web surfing experience. And by prioritising customer satisfaction through such tools, the company will benefit from their loyalty and word-of-mouth publicity, as well.
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As well as being in the driving seat with regard to data security, a digital ID wallet also provides an unparalleled customer experience in terms of how easily, quickly and efficiently the process works. Services which are compatible with digital wallet technology will only need to verify their customer’s identity once – or, if they rely on previous verifications from other entities, not at all.
What this means in concrete terms is that the customer benefits from swiftly reuse their stored identities through protocols that they already know and trust (such as biometrics and near-field communications), further boosting their satisfaction with the service. Meanwhile, the company must expend less resources for verifying the identity of their customers from scratch, thus slashing expenses and contributing to a healthy balance sheet.
Safer and More Secure
Although we have relied on physical wallets for many moons, it’s undeniable that they have their drawbacks. They can be lost, forgotten or stolen, while their dimensions are simply not large enough to store every single ID credential a person might need. This makes them not fit for purpose in the 21st century. Payment wallets such as ApplePay, GooglePay or PayPal have been the first move of wallets. They brought our stacks of credit cards into our wallets. Now it’s time to digitise our ID cards and other identity documents.
By contrast, digital wallets are virtually limitless in their capacity for storing identity documents and extenuating information. The robust cybersecurity defences they employ also make them much trickier for a criminal to pilfer, meaning the data inside is always safe from prying eyes. This is good news for companies, too, since it ensures they can comply with all anti-money laundering (AML) and Know Your Customer (KYC) regulations in a fully digital and highly convenient way.
Taking into account all those different advantages, it’s no surprise that digital identity wallets are regarded as the future of ID verification by businesses and consumers alike.