Impact of Digital Identity on eKYC Business¶
Definition¶
How the transition to digital identity (EUDI Wallet, VCs, government APIs) reshapes eKYC revenue models, competitive dynamics, and strategic positioning.
Revenue Impact¶
| Current Revenue Source | Impact | Timeline |
|---|---|---|
| Document OCR | ⬇️ Declining | 3-7 years |
| Face matching (doc vs selfie) | ⬇️ Declining | 3-7 years |
| Document forensics | ⬇️ Declining | 3-7 years |
| Face liveness | ➡️ Stable | Ongoing (still needed for presence) |
| Screening (sanctions/PEP) | ➡️ Stable | Ongoing (regulation unchanged) |
| Credential verification | ⬆️ New revenue | 2-5 years |
| Credential issuance | ⬆️ New revenue | 2-5 years |
| Wallet infrastructure | ⬆️ New revenue | 3-7 years |
Strategic Options¶
| Strategy | Approach |
|---|---|
| Ride the wave | Add credential verification alongside document verification |
| Become an issuer | Issue verified credentials after eKYC — new revenue stream |
| Build wallet infra | Provide wallet technology to governments/enterprises |
| Pivot to compliance | Focus on screening, monitoring, risk — unaffected by digital identity |
| Orchestrate both | Route between document eKYC and credential eKYC |
Key Takeaways¶
Summary
- Digital identity will gradually reduce document-centric eKYC revenue over 5-10 years
- New opportunities (credential issuance, wallet infrastructure) can exceed declining revenue
- Screening and monitoring are unaffected — regulatory obligations remain
- Smart providers will offer both document and credential paths during the transition