Digital identification’s adoption is skyrocketing in the UK, in large parts due to the UK Government’s GOV.UK app which will offer a government-authenticated and standardised approach to digital identity. According to findings from market research firm, Juniper Research, the number of UK residents using digital identification apps will rise from 6.9 million, in 2025, to over 25 million in 2029.
These findings estimate a growth of 267 per cent in just four years. Looking specifically at the potential of the government’s app, Juniper Research has predicted that over 45 per cent of UK adults will use the app by 2029. If it were not for this app, third-party identity apps might be struggling as the report reveals their popularity has decreased, but overall adoption is growing due to the GOV.UK app.
The research found that third-party apps will grow by just nine per cent between 2025 and 2029; a result of the GOV.UK app becoming a primary method of verifying an individual’s information, both remotely and in person. The introduction of this app will force third-party providers to re-strategise and place greater emphasis on advertising their verification services for onboarding onto the GOV.UK app.
Report author Thomas Wilson added: “In order to retain a role within the digital identity ecosystem, third-party identity providers must seek certification against the government’s trust framework, or they will be bypassed by certified providers and lose out on additional revenue.”
The report asserted the combination of government certification and third-party verification technologies as critical to overcoming concerns among UK citizens around privacy, which have been a long-term stumbling block to digital identity growth and promoting further adoption.
Challenges and opportunities
In addition to third-party concerns, another major challenge facing the uptake of digital identification is the regulations surrounding it. In the finance sector, there are a myriad of rules that organisations must comply with.
The Digital Identity and Attributes Trust Framework (DIATF), a framework introduced in 2021 by the government that sets the standard for trusted digital identity solutions for all service providers, is a strong backbone for the development of digital verification services, however, it lacks a strong legal foundation; creating uncertainty around data protection and consent management.
Looking specifically at fintech and the financial sector, small and medium-sized firms will be hit hardest by these challenges, as ensuring checks are compliant with all the regulations necessary could be extremely taxing on resources.
Nonetheless, overcoming these challenges is incredibly important. The report notes that a little over £2.4billion was spent in e-commerce fraud in 2024 in the UK, with over one per cent of all online transactions being fraudulent. As a result, having strong authentication measures in place to combat the growing fraud problem, including the use of verification platforms, is a must.
