Quickly and easily identifying consumers online is critical for any entity conducting business on virtual channels, especially financial institutions (FIs), government entities and merchants. Determining the identities of their users with the necessary speed and security is becoming more and more difficult in a world where digital fraud is an increasing concern. This concern has prompted online entities to reexamine how they are currently authenticating online customers — and what emerging tools could help strengthen that process.
Interest in government-supported digital identities such as digital driver’s licenses that 
consumers can use to verify who they are across various virtual channels is therefore rising, with countries including Malaysia and Singapore taking steps to create such tools for more robust online identification.
In the latest “Digital Identity Tracker®,” PYMNTS examines how and why government-supported digital identities are taking shape globally and what role these tools could play in the future of the digital world.
Around the Digital ID Space
Malaysia’s government is one of many seeking to build out more robust digital profiles of its residents. Government officials recently announced they would be introducing digital identity tools that would help to authenticate users when accessing services online or when making online payments. The announcement stated that these tools will be connected to the country’s MyKad identification cards — the traditional form of identification issued by the National Registration Department of Malaysia (NRD) — working in tandem to better verify users’ digital identities. Pairing these two identification tools together will help to strengthen authentication and reduce digital identity theft. The country aims to officially roll out these new digital identification tools by 2024.
Digital identities’ potential benefits have also become more intriguing for private entities and government bodies. Delta Airlines recently launched its own digital identity “experience” at the Hartsfield-Jackson Airport in Atlanta, Georgia, for example, aiming to enable travelers to speed up their boarding process while strengthening authentication. The experience is available to Delta’s SkyMiles frequent flyer program members — who must also be members of TSA PreCheck — and works by combining customers’ SkyMiles number, passport number and Known Traveler Number into one collective digital identity. Such digital identity experiences may become more common as time goes on and as more consumers and businesses conduct more business online.
For more on these and other stories, visit the Tracker’s News & Trends.
Why Government-Supported Digital Identities Are Key to The Future of Air Travel
Correctly determining passenger identities has always been crucial for the air travel industry. Rising concerns regarding the impact of the pandemic upon digital security — as well as consumers’ growing familiarity with digital tools and channels — are pushing entities within this industry to rethink their current verification processes, however. Entities such as the Transportation Security Administration (TSA) are moving toward adopting government-supported digital identities such as mobile driver’s licenses (mDLs), explained Jason Lim, the agency’s identity management capability manager.
To learn more about the global health crisis’s impact on the air travel space and the future role government-supported digital identities could play within it, visit the Tracker’s Feature Story.
Deep Dive: How Government-Supported Digital Identities Are Gaining Popularity Worldwide and What Obstacles Could Hold Back Adoption
There are now more than 4.6 billion individuals accessing the internet globally, banking, 
shopping and conducting other business routinely across digital channels. Swiftly and accurately identifying all of these users is critically important for the banks, businesses and other entities offering their services online. Still, traditional forms of identification that rely on static information — such as passwords or PINs — can often fall short in a virtual environment. This has led to a jump in interest in government-supported digital identities, potentially adding more security and swiftness to online identification processes.
To learn more about how government-supported digital identity initiatives are taking shape globally and what challenges may be holding them back, visit the Tracker’s Deep Dive.
About the Tracker
The “Digital Identity Tracker®,” done in collaboration with Jumio, is your go-to monthly resource for updates on trends and changes in the digital ID industry.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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