How reusable identity is reshaping the future of digital identity verification

The vision of a reusable ID—a digital identity that individuals can use across multiple services without repeatedly going through verification—is quickly becoming a reality. With the reusable digital identity market projected to reach $266.5 billion by 2027, the demand for seamless, secure, and user-controlled digital identity management is accelerating.

But what exactly is a reusable identity? How does it differ from traditional verification methods? And what role do verifiable credentials, biometrics, and digital wallets play in shaping this ecosystem?

Let’s explore the framework, benefits, and future of reusable digital identity.

What is a reusable identity?

A reusable identity is a verified digital identity credential that can be used multiple times across various services and platforms. Rather than uploading documents or completing identity checks for every new service, individuals can share a cryptographically signed identity credential stored in a secure wallet—similar to a digital passport.

Typically built using verifiable credentials and decentralized architecture, these identities are issued by trusted institutions and stored by users on their own devices or secure cloud environments. When needed, users can share only specific data—such as proof of age or residency—without revealing sensitive or unrelated information.

Ultimately, reusable digital identity is about user empowerment, privacy, and efficiency.

Reusable digital identity system

At the core of a reusable identity system are three roles:

• Issuer: A trusted authority (government, financial institution, etc.) that issues a verifiable credential
• Holder: The individual who stores and manages their credential in a digital wallet
• Verifier: A service or organization that checks the authenticity of the credential

Using public-key cryptography, modern systems allow verifiers to instantly authenticate identity credentials without contacting the issuer every time. These credentials can be validated online or offline via blockchain registries or decentralized identifiers (DIDs).

Recent developments shaping the space include:

• The release of W3C’s Verifiable Credentials Data Model v2.0 (March 2025)
• The European Digital Identity (EUDI) Wallet initiative under eIDAS 2.0
• Widespread adoption of Singapore’s Singpass Mobile for cross-service identity
• Advanced biometric tools to combat deepfakes and ensure secure credential issuance

These advances reflect growing maturity in digital identity management through reusable ID frameworks.

Challenges of traditional identity verification

While traditional identity verification has been a cornerstone of digital security, it faces several persistent challenges:

• Redundant processes: Users must verify themselves repeatedly with each new organization
• Data sprawl: ID documents are stored in multiple databases, raising breach risks
• Excessive disclosure: Verifying simple attributes (like age) often requires submitting full IDs
• Friction: Manual uploads and form-filling contribute to onboarding drop-offs—especially in banking and healthcare

Compared to reusable identity systems, traditional verification is more fragmented and less user-friendly.

Reusable identity vs. traditional identity verification

While they serve similar goals, reusable identity and traditional ID verification differ in several key areas:

Architecture

• Traditional IDV: Centralized—each verifier collects and stores personal data independently
• Reusable Identity: Decentralized—data is issued once, and the user controls sharing

Security

• Traditional IDV: Risks are isolated but widespread due to duplicated storage
• Reusable Digital Identity: Uses encrypted, tamper-proof verifiable credentials and supports selective data disclosure

User experience

• Traditional IDV: Requires repeated uploads, forms, and validations
• Reusable Identity: Involves a one-time setup; future verifications are as easy as scanning a QR code

Both approaches have value, but a modern digital identity management strategy blends the best of both—using traditional verification at the credential issuance stage, then enabling reuse through a secure identity wallet.

Benefits of reusable identity

When implemented properly, reusable identity systems offer significant advantages to both service providers and end users:

1. Accelerated onboarding

Customers can access services faster, improving conversions and reducing onboarding abandonment—especially in high-friction industries like finance.

2. Advanced fraud prevention

Verifiable credentials are cryptographically signed, making them nearly impossible to forge or tamper with. Deepfake resistance and credential revocation capabilities further enhance security.

3. Greater privacy and user control

Users share only the information needed for a given transaction, reducing exposure. They can also revoke access or set consent policies on their identity credentials.

4. Cross-service interoperability

A single reusable ID can unlock access to services in finance, travel, healthcare, education, and more—promoting digital inclusion and convenience.

Reusable identity in digital ID wallets

The engine powering the reusable digital identity model is the digital ID wallet. These apps or platforms enable users to:

• Secure credentials with biometric unlocking (e.g., fingerprint or face ID)
• Share only required attributes using selective disclosure
• Revoke or limit access with granular consent controls
• Store and recover credentials using encrypted backup systems

Biometrics and reusable ID

Biometrics play a key role in two phases:

• Issuance: To generate a high-assurance identity credential, users must validate their identity. Tools like Regula Document Reader SDK and Regula Face SDK can authenticate IDs, check liveness, and match facial features to documents.
• Presentation: When using the credential, users may be prompted for biometric confirmation. In high-security cases, a live selfie comparison may be requested to confirm the rightful holder is presenting the credential.

Verifying digital documents

Organizations also need to verify the verifiable credentials themselves. Whether it's a mobile driver’s license or a digital travel credential, verification includes reading QR codes or NFC chips, validating digital signatures, and checking authenticity.

Regula solutions support both physical and digital document verification, including generating Virtual Components (DTC-VCs) from RFID chips and verifying their signatures—all essential in a reusable identity system.

Conclusion

The shift toward reusable identity represents a major transformation in the identity verification landscape. Built on verifiable credentials, decentralized architecture, and biometric security, reusable digital identity empowers users and protects data while streamlining digital experiences.

While traditional ID verification remains crucial—especially at the point of issuance—the future lies in systems that give individuals control over their identity credentials and reduce redundant verification. Organizations that adopt this forward-thinking digital identity management approach now will be well-positioned to lead in a privacy-first, user-first digital world.