Britain has turned digital ID into a growth industry, with 275 companies generating £2bn in annual revenues offering services from employment checks to age verification. Adults can now use government-approved apps to swipe QR codes at self-service tills, eliminating the need for assistant approval. Start-ups like Yoti and Luciditi provide face-verified apps showing only photos and QR codes to confirm over-18 status, protecting privacy.
One small step for age verification is a giant leap for digital ID. Despite Prime Minister Andy Burnham dropping a £1.8bn mandatory digital ID scheme due to civil liberties protests, demand for digital identity services grows. Proof of identity remains essential for bank accounts and City of London office visits.
A new trust framework built six years ago allows private companies to provide verification services compliant with government security standards. This approach, started under Boris Johnson and continued under Burnham, enabled innovation despite policy reversals on identity cards. Yoti co-founder Robin Tombs notes regulation drives demand.
The government plans social media bans for under-16s and is building an online services platform with a digital wallet accepting military veteran cards and driving licences. However, start-ups must convince users they can secure personal data, undergoing audits to remain on the approved register. Yoti faces a €950,000 fine from Spain’s data agency over facial recognition use.
Digital ID needs a societal tipping point for widespread business adoption, still some way off.
Source: Financial Times Companies · Summarized by HeadlinesBriefing