Sharing Economy and the Need for Identity Verification

Along with the continual digital transformation across numerous industries, share-based businesses have experienced exponential growth in recent years. This rise of sharing economy allows consumers to efficiently purchase goods and services, especially with the need for contactless services amid the COVID-19 pandemic. Countless companies in the sector have made conducting transactions more accessible for their customers by launching mobile applications or online portals.

Because of its popularity, the market value of sharing economy platforms has constantly risen. From what was once $15 billion in 2014, the sector is projected to be valued at $335 billion by 2025, according to Statista. Despite the global health crisis, well-known enterprises like Airbnb, RVshare, and Swimply have all recorded an increase in earnings and customer engagement in the past two years.

Since the sector mainly operates in a peer-to-peer (P2P) system, building trust with consumers has been a priority for many brands. To achieve this, it is vital to implement sophisticated digital security measures, such as online identity verification methods, to ensure clients’ safety. In addition, it would also significantly improve the user experience, which is crucial when it comes to customer retention.

Having a robust cybersecurity system is also beneficial in fending off fraudsters who will try to exploit the network of their target companies. Due to the nature of the industry, it is very enticing for bad actors, and they can cause massive financial losses and deterioration of customer relationships.

This is why modern identity verification tools will come in handy for enterprises in the sharing economy. Apart from deploying their multi-factor authentication (MFA) guidelines, they can also invest in identity-as-a-service (IDAAS), providing a high level of security for classified information. This will significantly help build trust with the customers while minimizing the friction when using the application or website.

To learn more about the sharing economy and the need for identity verification, check this infographic provided by authID.

Sharing Economy & the Need for Identity Verification