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Introduction
Digital Identity and KYC Verification Statistics: Digital identity facilitates online verification of a person’s identity as more services, such as banking, payments, shopping, healthcare, and government portals, shift to digital environments. Because of this, companies must make sure a real person is creating an account and using the service. This is where KYC (Know Your Customer) verification is useful, as it helps businesses prevent fraud, comply with regulations, and make sign-up safer and easier.
A digital identity includes details such as your name, date of birth, ID documents, facial recognition, device information, and online activity. KYC checks these details using procedures such as ID verification, selfie verification, and database verification.
This article presents several statistical analyses from multiple perspectives that examine digital identity, the importance of KYC, and the challenges of balancing security and privacy.
Editor’s Choice
- According to a report shared by Coherent Market Insights, the digital identity verification market was valued at USD 13.78 billion in 2025.
- Meanwhile, North America accounted for the largest share (38.4%), and Asia-Pacific (23.7%) was the fastest-growing.
- As of 2025, the digital identity solution market accounted for USD 45.9 billion in revenue.
- The Digital Identity Solutions Market generated USD 27.9 billion in solutions revenue and USD 18 billion in services revenue.
- As of 2024, banks remain the top choice for a single digital identity service, trusted by 49% of respondents.
- Biometric-based digital identity solutions account for 68% of the global market.
- Demand for digital identity verification is increasing as online crime becomes more costly, with the FBI’s Internet Crime Complaint Centre (IC3) reporting USD 16.6 billion in losses in 2024.
- Polaris Market Research estimates the e-KYC market at USD 1.33 billion in 2025.
- As of 2024, banks remain the top choice for a single digital identity service, trusted by 49% of respondents.
- Digital identity services (KYC/AML share): Identity verification & KYC/AML are projected to account for 35.7% of the market value in 2025.
Global Digital Identity Verification Market Size
- According to a report shared by Coherent Market Insights, the digital identity verification market was valued at USD 13.78 billion in 2025.
- By the end of 2032, the market will reach USD 39.66 billion, with a 16.3% CAGR from 2025 to 2032.
- As of 2025, the single-factor authentication segment accounted for the largest market share (68.5%), and the Banking, Financial Services, and Insurance sector also secured the largest share (31.8%).
- Meanwhile, North America accounted for 38.4%, and Asia-Pacific (23.7%) was the fastest-growing.
- From 2025 to 2030, the market rises from USD 28,504.4 million to USD 49,667.0 million, an increase of USD 21,162.6 million, representing about 36% of the decade’s total growth, according to futuremarketinsights.com.
- Here, identity verification with KYC/AML accounts for over 35% of high-accuracy, compliance-intensive cases.
- From 2030 to 2035, the market increases from USD 49,667.0 million to USD 86,541.2 million, representing a 64% increase in total value.
- By then, cloud and hybrid exceed 70%, and service models exceed 65%.
- From 2020 to 2024, the market grew from under USD 20,000 million to over USD 26,000 million, with verification providers accounting for nearly 70%, and recurring models accounting for less than 20%.
- In 2025, it reached around USD 28,504.4 million.
Digital Identity Solutions Market Revenue
(Reference: scoop.market.us)
- As of 2025, the digital identity solution market accounted for USD 45.9 billion in revenue.
- By the end of 2026, the market size is expected to reach around USD 54.9 billion.
- Followed by USD 63.1 billion in 2027, USD 69.7 billion in 2028, USD 81.7 billion in 2029, USD 94 billion in 2030, USD 110.2 billion in 2031 and USD 131.6 billion in 2032.
- A global survey found that only 58% of respondents reported understanding the term “digital identity.”
- Italy had the highest awareness at 83%, whereas the United States had the lowest, with only 45% reporting confidence.
- Almost 42% of respondents said digital identity refers to any personal information available online, and Germans agreed most (52%).
- In comparison, 14% linked it to their e-signature, while only 5% chose their email address.
By Components
- In 2025, the Digital Identity Solutions Market generated USD 27.9 billion in solutions revenue and USD 18 billion in services revenue.
| Year | Solutions Revenue | Services Revenue |
| USD billion | ||
| 2026 | 33.4 | 21.5 |
| 2027 | 38.3 | 24.7 |
| 2028 | 42.4 | 27.3 |
| 2029 | 49.7 | 32 |
| 2030 | 57.1 | 36.8 |
| 2031 | 67 | 43.2 |
| 2032 | 80 | 51.6 |
By Identity Type
(Reference: scoop.market.us)
- Biometric-based digital identity solutions account for 68% of the global market.
- Meanwhile, non-biometric options account for the remaining 32%.
People’s Trust For Digital Identity Solutions
(Reference: scoop.market.us)
- As of 2024, banks remained the top preferred choice for a single digital identity service, trusted by 49% of respondents.
- Meanwhile, Google drew 26% trust, while government agencies at 23%.
Reasons Driving The Demand For Digital Identity Verification
- Online crime is getting costly, with the FBI’s Internet Crime Complaint Centre (IC3) reporting USD 16.6 billion in losses in 2024.
- Consumer fraud losses reached USD 12.5 billion in 2024, and the share of fraud reporters who lost money rose from 27% (2023) to 38% (2024).
- Account takeover losses increased to nearly USD 13 billion in 2023, up from USD 11 billion in 2022.
- Synthetic identity fraud accounts for 80% of new-account fraud and is projected to cause at least USD 23 billion in losses by 2030.
- Globally, the average breach costs approximately USD 4.88 million, and in the financial sector, it costs approximately USD 6.08 million.
- Moreover, 41% of logins used compromised passwords.
- Public-sector checks saw 6.7% suspected digital fraud in 2024, up 31% from 5.1% in 2023.
- Approximately 850 million people lack official identification, and 3.3 billion lack a government-recognised digital ID for online transactions.
- In the EU/EEA, users bore 45% of card payment and 51% of cash withdrawal fraud losses in H1 2023.
KYC Verification Statistics
- Burton Taylor (TP ICAP) forecasts global AML/KYC data & services spend at UISD 2.9 billion in 2025 (+12.3% YoY), with AML/KYC budgets rising 22% CAGR over the past five years.
- Polaris Market Research estimates the e-KYC market at USD 1.33 billion in 2025 (from USD 1.09 billion in 2024).
- It is projected to reach USD 8.09 billion by 2034, a 22.3% CAGR (from 2025 to 2034).
- Fenergo reports that 2025 onboarding abandonment is just over 10% (1 in 10) among 600 senior executives across the UK/US/Singapore.
- Meanwhile, 47% already use AI in compliance, while 6% use agentic AI.
- McKinsey estimates that KYC/AML activities take up roughly 10%-15% of banks’ total full-time staff capacity (FTEs).
- As of October 2025, e-KYC reduced onboarding time from 120 to 12 hours, costs from ₹180 to ₹25, and fraud from 12.0% (120/1000) to 4.5% (45/1000).
Steps of KYC Verification
| Steps | KYC activity |
| 1 | Before opening an account, the bank explains the identity verification process and obtains the customer’s consent. |
| 2 | It collects key details, such as name, date of birth, address, and an ID number, along with supporting documents. |
| 3 | The bank verifies identity using trusted documents and, where allowed, digital or electronic checks. |
| 4 | If the account is for a business or another person, the bank identifies and verifies the beneficial owner. |
| 5 | It records the account’s purpose and the manner in which it is expected to be used. |
| 6 | The customer is screened against government databases and watchlists. |
| 7 | KYC/CIP records are retained for the required period, typically at least five years. |
| 8 | The bank continues to monitor activities and update KYC details in accordance with the results of risk reviews. |
Technologies Used For Digital Identity and KYC Verification
| Technology/area | Key statistics |
| Digital identity services (KYC/AML share) | Identity verification & KYC/AML is projected to make up 35.7% of market value in 2025 |
| Document verification (OCR, forgery checks, MRZ/NFC) | Market grows from USD 4.24 billion (2024) to USD 5.05 billion (2025) (19.3% CAGR).Forecast to hit USD 9.94 billion by 2029 (18.4% CAGR). |
| Biometrics + face match | The facial recognition market is estimated at USD 8.58 billion (2025) and is projected to reach USD 18.28 billion (2030), with a 16.33% CAGR. |
| Liveness / anti-spoofing | Liveness transactions are forecast to exceed 50 billion per year by 2027.Revenue expected to be USD 252 million by 2027 |
| Government e-KYC rails (Aadhaar example) | Feb 2025: nearly 225 crore Aadhaar authentications and 43 crore e-KYC transactions.42.89 crore e-KYC transactions were approximately 14% higher YoY |
| Sanctions/watchlist screening | Screening alerts can have over 99% false positives |
| Agentic AI adoption & ROI signals | 93% plan to adopt agentic AI within 2 years; 36% select fraud detection as the top use.19% KYC maintenance; 16% transaction monitoring.26% expect to achieve more than USD 4 million in annual savings. |
| Passkeys / WebAuthn | Passkeys are implemented by 48% of the world’s top 100 websites |
| Passkey scale + performance examples | Moreover, 15 billion online accounts can use passkeys.Amazon: 175 million passkeys created; Google: 800 million accounts use passkeys with 2.5 billion sign-ins.Success rate +30% and sign-in speed +20% (avg) |
| Passkey adoption awareness | More than 1 billion people have activated at least one passkey.Awareness increased from 39% to 57% in 2 years. |
| Payments auth uplift (biometrics/passkeys vs OTP) | India expects 2-3% higher transaction success rates as biometrics/passkeys replace OTP flows. |
Conclusion
Rather than merely being a legal requirement, digital identity and KYC have become key systems that foster trust and safety online. As banking, shopping, healthcare, and government services move online, it becomes necessary to verify a person’s identity through KYC. This even helps to prevent fraud, enhance user safety, and comply with legal requirements.
In the future, KYC will become faster and more efficient with risk-based checks, enhanced biometric security, and reusable digital IDs. Strong KYC builds trust, reduces risk, and supports long-term growth. Hopefully, the overall statistical analyses will help readers better understand the topic.
