The quick and easy identification of consumers on the Internet is of vital importance for all companies that do business in particular on virtual channels, for financial institutions (FIs), government agencies and merchants. In a world in which digital fraud is an increasing problem, it is becoming more and more difficult to determine the identity of theirs with the necessary speed and security. This concern has led online businesses to review how they currently authenticate online customers – and what new tools might be used to power that process.

The interest in government-supported digital identities such as digital driver’s licenses, with which consumers can verify their identity via various virtual channels, is therefore increasing. Countries like Malaysia and Singapore are taking steps to develop such tools for more reliable online identification.

In the latest Digital Identity Tracker® , PYMNTS examines how and why state-supported digital identities are taking shape worldwide and what role these tools could play in the future of the digital world.

All about the digital ID room

Malaysia’s government is one of many striving to create more robust digital profiles of its residents. Government officials recently announced the introduction of digital identity tools that can be used to authenticate users when accessing services online or making online payments. The announcement said these tools will be linked to the country’s MyKad identification cards – the traditional form of identification issued by the National Registration Department of Malaysia (NRD) – and work together to better improve users‘ digital identities check. The combination of these two identification tools is used to strengthen authentication and reduce digital identity theft. The country will officially roll out these new digital identification tools by 2024.

December 2021 Digital Identity Tracker – Discover government-sponsored digital identity initiatives taking shape around the world. The potential benefits of digital identities have also become more appealing to private institutions and government agencies. Delta Airlines, for example, recently introduced its own digital identity experience at Hartsfield-Jackson Airport in Atlanta, Georgia, to enable travelers to accelerate the boarding process while strengthening authentication. The Experience Delta Frequent Flyer Program Members SkyMiles – The TSA PreCheck Members Are Also, When, When – And Works Such experiences with digital identity may become more common over time, as more consumers and businesses move online.

For more information on these and other stories, see Tracker’s News & Trends.

Why government-supported digital identities are the key to the future of air travel

Correct determination of passenger identity has always been of vital importance in the aviation industry. However, rising concerns about the digital security impact of the pandemic – as well as consumers‘ increasing familiarity with digital tools and channels – are forcing companies in this industry to reconsider their current verification processes. Companies like the Transportation Security Administration (TSA) are moving towards adopting state-supported digital identities like Mobile Driver’s Licenses (mDLs), with Jason Lim, the agency’s Identity Management Capability Manager.

To learn more about the impact of the global health crisis on aviation space and the future role of government-backed digital identities, visit Tracker’s Feature Story.

Deep Dive: How government-supported digital identities are gaining popularity around the world and what obstacles could hinder adoption

More than 4.6 billion people around the world now access the Internet. Identifying all of these users quickly and accurately is vital for banks, corporations, and other entities offering their services online. Nevertheless, traditional forms of identification that are based on static information – such as passwords or PINs – can often be neglected in a virtual environment. This has led to an increase in the interest in government-supported digital identities, which may lead to more security and speed in online identification processes.

To learn more about how government-sponsored digital identity initiatives are taking shape around the world and what challenges they may be holding back, visit Tracker’s Deep Dive.

Via the tracker

The Digital Identity Tracker ®, created in cooperation with Jumio, is your monthly contact point for updates on trends and changes in the digital ID industry.

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