Business

Sharing Economy and the Need for Identity Verification

Due to the wide acceptance of modern technology worldwide, countless companies were able to formulate business types that can cater to the ever-evolving consumer demand. The peer-to-peer (P2P) system has proved to be a cutting-edge business model for numerous brands, paving the way for the rise of share-based businesses in recent years.

Global sharing economy brands like Airbnb and Uber have contributed to the industry’s significant growth. A report from Statista forecasted that the sector will be valued at $335 billion by 2025, a staggering increase from its $15 billion value in 2014. Apart from the development of technology, the lasting effects of the COVID-19 pandemic also add to the expansion of the sharing economy.

However, mainly due to the nature of share-based enterprises, it is also subject to constant attacks from bad actors. Fraudsters can swindle an enormous amount of money from brands, which can also deteriorate consumer trust, which is considered one of the essential factors for a share-based institution to thrive.

This is why robust digital security solutions, such as mobile identity authentication became a top priority for many companies in the sharing economy. Implementing reliable cybersecurity measures will ensure clients that transactions are legitimate and their details will not be compromised to the swindlers. This leads to many businesses investing in identity as a service (IDaaS) services to beef up their online security measures.

With IDaaS solutions, share-based brands can significantly improve the user experience when consumers utilize their platforms. It will also minimize any possible friction when customers switch between related applications, improving the customer retention of countless enterprises. In addition, modern online security solutions can replace traditional knowledge-based credentials like passwords. Passwords are already used for decades and stand no chance with sophisticated tech-savvy tricks used by many malicious people at present.

To learn more about the sharing economy and the need for identity verification in the industry, check this infographic from authID.

Sharing Economy & the Need for Identity Verification

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