Merchants and financial institutions not offering ID verification and biometric payment authorisation are at risk of losing customer trust, according to a new report from global digital payments platform Checkout.com.
In a new 2025 report, ‘Trust in the Digital Economy‘, Checkout.com reveals that 49 per cent of the UK population believe that the future of secure payments online will use digital ID as verification. The findings come as the UK government explores plans to develop digital ‘Britcard‘ ID cards.
According to the new research conducted by YouGov, 43 per cent of UK consumers also believe that digital ID verification would enhance their trust in merchants and financial institutions when transacting online.
Despite this demand, only 21 per cent of UK consumers currently use a payment method with biometric verification for added security (rising to 27 per cent of Gen Z). Checkout.com says this highlights a significant untapped opportunity for merchants to increase trust in the digital economy by integrating payment flows that offer biometric authentication.
“We are seeing people’s personal experiences with card credential theft – or fear of becoming a victim of fraud – having a very real impact on their online payment preferences,” said Jenny Hadlow, chief operations officer at Checkout.com. “With consumers ever more savvy to the risks they face from sophisticated scammers, they now expect merchants and financial institutions to implement the latest technologies to keep their payments safe online. Trust in digital commerce is critical for both customer and merchant confidence, and meeting demand for enhanced payment security should be a priority for online businesses.”
Gender disparity and payment fraud
Interestingly, attitudes towards the types of businesses trusted to store biometric data for payments and ID verification vary by gender. Eight per cent more men (15 per cent) are comfortable with fintechs storing their data than women (seven per cent), while eight per cent more women (23 per cent) are comfortable with food delivery services storing their biometric data than men (15 per cent).
Checkout.com’s new report also reveals that men are twice as comfortable as women with online gaming and digital content providers storing their biometric data.
The research also revealed the true extent of those targeted by payment fraud. Forty per cent of UK adults report that their card credentials have been stolen in the last 12 months alone. This suggests that over 27 million British consumers have been victims of fraud in the last year alone. These figures highlight the urgent need for enhanced payment security through methods like 2FA and biometric authentication.
