Identity Verification Service: A way to empower the poor and improve the sharing economy
In a world where proof of identity is essential for access to credit and finance, users in less developed countries continue to struggle without official identity documents or comprehensive credit history. In these countries, government issued ID documents are considered luxuries and privileges, not rights granted under law, primarily due to a lack of resources and infrastructure.
People in these emerging markets are not as concerned with fraud, theft or even privacy, here identity verification(IDV) serves a different purpose — a way to financially empower the poor.
For an industry to flourish and become successful, there should be an emerging market with a huge market capacity. This is what is exactly happening with the IDV industry, especially in the developing countries. To tap the increasing IDV market, many companies are jumping on board to offer IDV services in recent times.
The sharing economy is quickly evolving to become a major part of global economy in recent times. The rapid growth of Airbnb and Uber is an example of this trend. According to Brookings, the shared economy market earned a revenue of $14 billion in 2014. This value is expected to touch $335 billion by 2025. eMarketer estimates that 56.5 million people in the US will use a shared economy service in 2017. More forms of shared economy are expected to come up in recent times. As sharing economy relies heavily on trust among peers, the IDV system has a greater role to play here, extending beyond the financial services sector.