How is Digital ID Perceived in the UK?

Wednesday, 16 April 2025
Fintech & Payments
Thomas Wilson
Research Analyst

Digital identity in the UK has been a topic of debate since the mid-2000s when the Labour government proposed modernising identity verification. This initiative, intended to improve security and streamline processes, was met with public backlash and was scrapped by the Conservative-Lib Dem Coalition in 2010. Fast-forward to 2024, and over 50% of UK voters now support the introduction of digital ID cards, though significant opposition remains, particularly around privacy concerns.

The UK has traditionally used physical documents like passports and driving licences as proof of identity, but as we note in our latest research, with the government’s upcoming digital identity wallet in 2025, citizens will be able to store credentials such as driving licences and veteran cards on their smartphones. This shift aims to modernise government services, although it is important to note that these digital IDs won’t be mandatory.

Privacy and security risks are significant concerns with the rise of digital IDs. Storing sensitive data on smartphones increases the potential for data breaches, while biometric protections, like facial recognition, can be bypassed by advanced AI technologies. As the UK moves forward with digital identities, strong security measures will be necessary to protect individuals from fraud and identity theft, ensuring the system remains safe and secure.


Source: Digital ID & Verification in the UK Market 2025-2029

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