Reusable Identity and Its Benefits

The idea of using a reusable ID across multiple services—without repeating the full identity verification process every time—is no longer just a concept. It’s fast becoming a reality. According to market analysts, the reusable digital identity market could grow to $266.5 billion by 2027 as demand increases for seamless, secure, and user-centric digital identity management.

But what exactly is a reusable identity, how does it differ from traditional verification processes, and what role will technologies like verifiable credentials and biometrics play in shaping its future?

This article answers these questions and more, examining the architecture, trade-offs, and practical applications of reusable identity in modern digital ecosystems.

What Is a Reusable Identity?

A reusable identity refers to a digital identity credential that has been verified once and can be reused across multiple platforms and services. Instead of submitting your documents repeatedly, users can present a cryptographically signed identity credential stored in a secure wallet—like showing a digital passport.

Typically built on verifiable credentials and decentralized architectures, these reusable credentials are issued by trusted authorities and stored by users on their own devices or cloud wallets. Once verified, the user can share selected attributes on demand—proving “I’m over 18” or “I’m a resident of this country” without exposing unnecessary personal data.

At its core, reusable digital identity is designed for privacy, control, and convenience.

Reusable Digital Identity System

The standard reusable identity model includes three main roles:

• Issuer: A trusted entity (government, bank, etc.) that issues a verifiable credential
• Holder: The user who stores and controls their identity credential in a digital wallet
• Verifier: Any organization or service that needs to check identity attributes

Modern systems use public-key cryptography to validate credentials without repeatedly contacting the issuer. This setup reduces friction and allows identity credentials to be authenticated instantly—whether online or offline—via blockchain or registry lookups.

Recent progress includes:

• The release of W3C’s Verifiable Credentials Data Model v2.0 (March 2025)
• EU’s European Digital Identity (EUDI) Wallet pilot under eIDAS 2.0
• Singapore’s nationwide adoption of Singpass Mobile as a trusted reusable ID
• Enhanced biometric verification technologies capable of defending against deepfakes and spoofing

These developments demonstrate the growing maturity of digital identity management built on reusable identity frameworks.

Challenges of Traditional Identity Verification

Traditional identity verification methods come with inherent limitations:

• Repetition: Users must verify their identity separately with every new service provider
• Data sprawl: Personal documents are stored across multiple databases, increasing breach risks
• Over-disclosure: Often, users must submit more information than necessary (e.g., full ID for a simple age check)
• User friction: Time-consuming onboarding flows contribute to abandonment, especially in regulated industries like finance and healthcare

While traditional verification offers high security per use, its fragmented nature and poor user experience present clear challenges—especially when compared to reusable ID systems.

Reusable Identity vs. Traditional Identity Verification

Rather than being direct competitors, reusable identity and traditional verification complement one another. Here's how they differ:

Architecture

• Traditional IDV: Centralized; each organization collects and stores ID data independently
• Reusable Identity: Decentralized; once verified, the user controls the identity credential and shares it with verifiers

Security

• Traditional IDV: Risk is siloed, but increases due to multiple data repositories
• Reusable Digital Identity: Emphasizes data minimization, encryption, and tamper-evident credentials

User Experience

• Traditional IDV: Repetitive document uploads and form submissions
• Reusable Identity: One-time setup; future access requires only sharing credentials via a tap or QR scan

That said, a well-rounded digital identity management strategy integrates both approaches. Reusable credentials still require an initial verification step—typically involving biometric checks and document validation—to ensure trust.

Benefits of Reusable Identity

When done right, reusable identity systems offer clear benefits to both users and service providers:

1. Faster Onboarding

Businesses experience fewer drop-offs by removing redundant steps. With a reusable ID, users can instantly access services, leading to higher conversion rates.

2. Stronger Fraud Prevention

Verifiable credentials come with cryptographic signatures that invalidate any tampering. Fraud attempts like deepfakes or synthetic IDs are easier to detect and respond to.

3. Privacy and Control

Users disclose only the data that’s necessary, minimizing exposure. Attribute-based disclosures—like proving age or residency without revealing full ID—offer true data minimization.

4. Cross-Platform Interoperability

A single identity credential can unlock services in banking, healthcare, travel, and beyond. This inclusivity is particularly powerful in regions with limited access to physical documents.

Reusable Identity in Digital ID Wallets

The heart of a reusable digital identity system is the digital wallet where credentials are stored. These wallets offer features such as:

• Biometric unlocking (fingerprint, face ID)
• Selective disclosure of attributes
• Consent management and access revocation
• Encrypted backups and recovery mechanisms

Biometrics and Reusable ID

Biometric verification is critical at two stages:

• Issuance: When a credential is created, the person’s identity must be proven. Tools like Regula Document Reader SDK and Regula Face SDK can scan official documents, check liveness, and match facial features to the document image.
• Presentation: When using a credential, users may authenticate with a fingerprint or face scan. In high-risk scenarios, additional selfie verification may be required using solutions like Regula Face SDK to prevent presentation attacks.

Verifying Digital Documents

Verifiers may also need to validate digital formats like mobile driver’s licenses (mDLs) or digital travel credentials. This involves reading 2D barcodes or NFC chips and checking the digital signatures. Regula tools support both physical and digital document verification, including the ability to generate DTC-VCs (Virtual Components) by extracting data from an RFID chip.

Conclusion

Reusable identity is more than a trend—it’s a foundational shift in how we handle identity verification. While traditional IDV methods still play a vital role, especially during credential issuance, the future belongs to reusable digital identity systems that combine trust, efficiency, and user control.

Powered by verifiable credentials and supported by cutting-edge biometric tools, reusable ID systems reduce friction, prevent fraud, and return data sovereignty to users. As governments and enterprises invest in scalable digital identity management, those ready to adopt reusable identity today will be tomorrow’s trust leaders.