Reusable Identity: The Next Step In IDV Evolution?

The idea of a reusable digital identity—a single verified credential that users can share across services—is gaining momentum. With businesses and governments searching for efficient, user-centric ways to meet KYC obligations, the market for reusable identity solutions is projected to reach $266.5 billion by 2027.

But what will this shift mean for the identity verification (IDV) industry? Will reusable identity replace traditional verification methods entirely, or will both coexist and evolve together?

In this article, we unpack what reusable identity means, how it compares to traditional identity verification, and how the two can complement each other.

What Is a Reusable Identity?

A reusable identity is a digital credential that contains verified information about an individual. Once issued—usually after a one-time identity check—this credential can be presented repeatedly to different service providers without the need to resubmit documents or sensitive data.

These identities are often stored in digital wallets, protected by biometric authentication or PINs, and are structured using Verifiable Credentials (VCs) within a decentralized identity ecosystem. The architecture typically includes:

• Issuer – the entity that verifies and signs the credential (e.g., government, financial institution)
• Holder – the individual who owns and stores the credential
• Verifier – the organization requesting proof of identity

With public-key cryptography, verifiers can confirm the authenticity of credentials instantly, either offline or via a blockchain, without contacting the original issuer.

Most importantly, users control the data. Instead of being stored across countless databases, personal information remains with the user and is shared only when needed, minimizing data exposure and improving privacy.

Recent Developments in Reusable Identity

Progress in reusable identity is being fueled by several global trends:

1. Technical Standardization

In March 2025, the W3C released version 2.0 of its Verifiable Credentials data model, improving semantics and separating core data from proof mechanisms, laying the groundwork for wide-scale adoption.

2. Government-Led Initiatives

Europe is leading the way with its eIDAS 2.0 framework and the upcoming European Digital Identity (EUDI) Wallet, which will allow citizens to store and share government-issued credentials. Singapore’s Singpass Mobile offers a similar model, giving millions of users a secure, portable digital ID.

3. Advances in Biometric Technology

Vendors like Regula are enhancing fraud detection through advanced document liveness checks and deepfake-resistant facial recognition, ensuring that the “verify once” principle can be trusted and not exploited.

Reusable Identity vs. Traditional IDV: Key Differences

Reusable identity doesn’t aim to replace traditional ID verification—it builds on it. Both methods can work together to create a more efficient, secure, and user-friendly identity ecosystem.

Architecture

• Traditional IDV: Every organization performs identity proofing independently. Each new service relationship requires document uploads and new checks.
• Reusable ID: Identity is verified once, and the user holds a credential they can present repeatedly. The credential is cryptographically signed and validated using public registries or decentralized systems.

Security

• Traditional IDV: Risks are isolated, but data is stored in multiple databases, increasing exposure to breaches.
• Reusable ID: Focuses on data minimization and tamper-proof credentials. However, if a credential is compromised, it may affect multiple services—making protection and revocation mechanisms critical.

User Experience

• Traditional IDV: Involves repetitive onboarding, document scanning, and form-filling.
• Reusable ID: Enables instant verification post-enrollment. Users control what data is shared and can revoke access at any time.

Why Reusable Identity Matters

When implemented effectively, reusable identity offers clear advantages for both users and organizations:

Faster Onboarding

A reusable ID can drastically reduce drop-off rates by simplifying sign-up flows. One study found that nearly 25% of banking customers abandon onboarding due to lengthy verification. With reusable credentials, friction drops and conversion rates rise.

Reduced Fraud

Credentials are digitally signed and verifiable. If a credential is found to be fraudulent, it can be revoked, protecting all relying parties simultaneously. Metadata about the verification process (e.g., whether biometrics were used) offers additional fraud detection signals.

Greater User Control

Users share only what’s needed (e.g., proving they are over 21 without revealing a birthdate). They also retain the power to limit, revoke, or monitor how their identity is used.

Cross-Service Interoperability

A single credential can unlock services in banking, healthcare, travel, and more. This is especially transformative in underserved regions, where verified digital IDs can open access to essential services without the need for physical documents.

Biometrics: The Backbone of Reusable Identity

Biometric verification plays a critical role in both issuing and using reusable credentials.

Credential Issuance

To create a trusted reusable identity, a strong verification process is essential. This typically includes:

• Document verification – e.g., using Regula Document Reader SDK to detect forgeries, extract data, and confirm document authenticity.
• Face matching – e.g., using Regula Face SDK to compare a selfie with the document photo.

This step ensures that the credential is issued to the correct individual and provides a strong foundation for trust.

Credential Presentation

When users present their reusable identity, they may be asked to unlock their wallet with biometrics (like a fingerprint or face scan). In high-risk scenarios, a live selfie may be required to confirm identity again.

Digital ID Validation

As digital IDs like mobile driver’s licenses (mDLs) and digital passports become more common, solutions like Regula’s are evolving to read barcodes, scan NFC chips, and verify issuer signatures—bridging the gap between physical and digital identity documents.

Regula’s Role in Reusable Identity

At Regula, we understand that reusable identity isn’t about abandoning traditional IDV—it’s about building on it.

Our tools, including Regula Document Reader SDK and Regula Face SDK, are designed to integrate seamlessly into mobile and web platforms, enabling:

• Accurate document recognition and authenticity checks
• Instant facial recognition with advanced liveness detection
• Defense against spoofing techniques like printed photos, video injections, or masks

Together, these tools empower organizations to issue high-assurance digital credentials and maintain ongoing trust through secure verification.

Final Thoughts

Reusable identity is more than a trend—it’s a transformation. As digital services expand, users want more control, less friction, and better privacy. Businesses want faster onboarding and stronger fraud prevention.

When paired with strong biometric and document verification, reusable identity offers the best of both worlds: security and convenience.