Is 2025 the Year of Digital ID in the UK?
The UK is a market often noted for its resistance to digital ID or national identity systems in general. It is often believed that the UK public are less open to the idea than citizens of other countries and prioritise privacy over the efficiency gains a digital ID system could offer. However, this is slowly changing, as indicated by a YouGov poll in December 2024 which found strong support for a system of national identity cards in the UK.
Question: Would you support or oppose the introduction of a
system of national identity cards in Britain?
Source: YouGov
Another significant movement in December 2024 occurred with the unveiling of new proposed legislation that, if passed, would enable UK residents to use digital IDs to verify their age when buying alcohol. This will be applicable in pubs, clubs, and shops. The IDs will be provided by third-party companies and checked against government records, with these checks carried out by either NFC or QR codes, ensuring the process is streamlined. These digital IDs will also not reveal the user’s name or address, as is the case with traditional IDs.
These changes will come from the Data (Use and Access) Bill, introduced to Parliament in 2024. The bill is currently in the House of Lords, with it still needing to pass the House of Commons and gain Royal Assent before it becomes law. In its press release, the Department for Science, Innovation and Technology state they expect it to be in force by the end of 2025.
This follows on from the 2023 decision, by the previous government, to allow UK citizens to upload identity documents to apps in order to carry out Disclosure and Barring Service (DBS), right to work, and right to rent checks. These services are provided by third-party identity services, such as Yoti, and it is expected that the same companies will be involved in the provision of the new digital IDs.
Source: Yoti
It is worth stressing that this will be a fairly limited programme, with participation entirely optional for both consumers and businesses. This will likely result in slow and uneven adoption, as was seen with the 2023 roll-out of digital IDs, with the vast majority of locations which accepted these IDs being in London or other major cities. This is due to the fact that consumers are unlikely to adopt the technology unless it is usable in a good number of the locations they use. Equally, businesses are less likely to adopt it if consumers are not using it. This results in the market for these technologies taking longer to reach critical mass and become widespread.
It is not only in the consumer sector that digital identity is growing in the UK. In December 2024, a coalition of leading financial institutions and technology companies, led by the UK’s Centre for Finance and Innovation Technology (CFIT), unveiled their progress on designing a digital company ID.
Proposed Components of 'Digital Company ID'
Source: CFIT
The proposed model would enable CFIT to create a working prototype, in the form of a virtual passport for businesses. CFIT suggest that the widespread adoption of a digital company ID would help prevent fraud, boost efficiencies for banks and other financial institutions. This work was supported by the Chancellor, in the National Payments Vision published in November 2024, with the document pledging to ‘consider any finding that emerge from CFIT’s work in due course’. CFIT will announce the results, recommendations and next steps from its programme in March 2025.
The adoption of digital IDs for businesses would reduce fraud as it is more challenging to fake a digital identity. This would give businesses the confidence that those they transfer money to are who they claim to be. The IDs would also be used for Know Your Business (KYB) checks, along with ultimate beneficial owners (UBO) checks and comparison to anti-money laundering (AML) databases. If implemented well, this technology could not just reduce financial crime but also allow businesses to save costs on carrying out these checks by conventional methods. Adoption in the financial sector is likely to be strong if made available, as several major FIs are already involved in the project. Regulatory support is also likely as the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) are both involved.
With both these announcements coming at the end of 2024, 2025 is shaping up to be a big year for digital identity in the UK. While it seems unlikely there will be widespread adoption of a digital ID in the UK by consumers before the end of 2025, the foundations for such a success story are being laid. If the Government wants this to happen, targeting key use cases will be essential. Common points of friction for consumers, such as age verification at self-service checkouts, or entry to licensed premises, will play an important role in promoting adoption. It is usual for consumers to have their mobile device on them in such circumstances, so as such, having their ID on that device offers great convenience. It will be the convenience of use and acceptance rate by businesses which ultimately will determine the success of the technology.
A Senior Research Analyst at Juniper Research, Michael primarily conducts research on digital identity and payments markets. His recent reports include Digital Identity, Instant Payments, and Digital Wallets.
Latest research, whitepapers & press releases
-
ReportOctober 2025IoT & Emerging Technology
Direct to Satellite Market: 2025-2030
Juniper Research’s Direct to Satellite research suite provides satellite providers, investors, and partners, such as Mobile Network Operators, with an extensive analysis and insights into the direct to satellite market.
VIEW -
ReportOctober 2025Telecoms & Connectivity
Travel SIMs & eSIMs Market: 2025-2030
Our comprehensive Travel eSIMs research suite comprises detailed assessment of a market undergoing rapid growth. It provides insight into how travel eSIM providers can differentiate their services to maximise success in the market over the next two years.
VIEW -
ReportSeptember 2025Fintech & Payments
Instant Payments Market: 2025-2030
Juniper Research’s Instant Payments research suite provides a wide-ranging and strategic analysis of this market; enabling stakeholders - from banks, infrastructure providers, regulators, and businesses - to understand future growth, key trends, and the competitive environment.
VIEW -
ReportSeptember 2025Fintech & Payments
Anti-money Laundering Systems Market: 2025-2030
Our AML Systems research suite provides a detailed and insightful analysis of this evolving market; enabling stakeholders from financial institutions, law enforcement agencies, regulatory bodies and technology vendors to understand future growth, key trends, and the competitive environment.
VIEW -
ReportSeptember 2025Fintech & Payments
A2A Payments Market: 2025-2030
Our A2A Payments research suite provides detailed analysis of this rapidly changing market; enabling A2A payments service providers to gain an understanding of key payment trends and challenges, potential growth opportunities, and the competitive environment.
VIEW -
ReportSeptember 2025Telecoms & Connectivity
Mobile Messaging Fraud Prevention Market: 2025-2030
Our Mobile Messaging Fraud Prevention research suite provides a detailed and insightful analysis of a market set for significant disruption over the next five years. It enables stakeholders from mobile operators, enterprises, and mobile messaging fraud prevention vendors to understand how the market for mobile messaging fraud will evolve, as well as the impact of AI, RCS, and the evolving competitive environment.
VIEW
-
WhitepaperSeptember 2025Fintech & Payments
Core Banking Transformation - A Strategic Conversation with SAP Fioneer
Core banking transformation is no longer optional, as regulatory change, rising compliance costs, and shifting customer expectations make legacy systems unsustainable. Anna Koritz, Global Head of Transaction Banking at SAP Fioneer, shares how banks can overcome cultural and technical hurdles and why SAP Fioneer’s modular, cloud-ready approach enables confident modernisation.
VIEW -
WhitepaperSeptember 2025Fintech & Payments
From Detection to Prevention: The Next Era of Anti-money Laundering
Our complimentary whitepaper, From Detection to Prevention: The Next Era of Anti-money Laundering, examines the state of the AML systems market; considering the impact that a changing regulatory environment and a growing number of use cases is having on the market. Additionally, it includes a forecast summary of the total value of the AML systems market in 2030.
VIEW -
WhitepaperSeptember 2025Fintech & Payments
3 Key Trends Driving Instant Payments
Our complimentary whitepaper, 3 Key Trends Driving Instant Payments, assesses how key trends are driving the evolution of the instant payments market, and which challenges these resolve. Additionally, it includes a forecast summary of the global transaction values via instant payment schemes by 2029.
VIEW -
WhitepaperSeptember 2025Fintech & Payments
Ascending-to-Ailing: The Deceleration of A2A Adoption
Our complimentary whitepaper, Ascending-to-Ailing: The Deceleration of A2A Adoption, examines the state of the A2A payments market; considering the impact of this payment method and how it is shaping the modern payments landscape through lower fees and enriched user experience.
VIEW -
WhitepaperSeptember 2025Telecoms & Connectivity
RCS Fraud: Emerging Threats in Next-gen Messaging
Our complimentary whitepaper, RCS Fraud: Emerging Threats in Next-gen Messaging, examines the future of the messaging fraud prevention market, with a particular focus on the latest trends within RCS Business Messaging (RBM). Additionally, it includes a forecast summary of the total cost of fraud over RBM to subscribers in 2030.
VIEW -
WhitepaperSeptember 2025
Decentralising the Smart Grid: Opportunities & Challenges
Our complimentary whitepaper, Decentralising the Smart Grid: Opportunities & Challenges, explores how distributed energy resources, renewable integration, and virtual power plants are reshaping grid management.
VIEW
-
Fintech & Payments
Subscription Economy to Reach $1.2 Trillion by 2030 Globally, Despite Increasing Subscription Fatigue
October 2025 -
Fintech & Payments
AML Systems Market to Surpass $75 Billion by 2030 Globally, With LexisNexis Risk Solutions, Oracle, and Experian Leading the Defence
September 2025 -
Fintech & Payments
Instant Payments to Exceed $110 Trillion by 2029 Globally, Accelerated by European Regulation & FedNow Impact
September 2025 -
Fintech & Payments
B2B Payments to Hit $224 Trillion by 2030 Globally, Driven by Emerging Market Expansion
September 2025 -
Fintech & Payments
A2A Transaction Value to Reach $195 Trillion in 2030 Globally, Driven by Advanced Value-added Services
September 2025 -
Telecoms & Connectivity
ReveNet: Operators Must Act to Restore Trust & Transparency to $55bn A2P SMS Ecosystem
September 2025