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The Evolution of Digital Identity

Posted on 7.20.2015

Adoption of next-generation authentication methods is on the rise according to a new study from customer identity management company Gigya.

The 2015 State of Consumer Privacy & Personalization report shed light on an evolution in the concept of digital identity. The evolution, dubbed Identity 3.0, is characterized by the use of more advanced authentication methods beyond usernames, passwords and social login. In fact, the data shows that biometric technologies are emerging as popular authentication options, with 41 percent of consumers having a high level of comfort logging in to a site or mobile app using a thumbprint or face/eye scan. The data also found that 59 percent of consumers acknowledge a willingness to register or log in to a website or mobile application with an existing identity from a payment provider like PayPal or Amazon.

That said, social login is still a popular option, as the study found 88 percent of U.S. consumers have logged in to a website or mobile application using an existing social network identity, which is an 11 percent increase from last year. Also, when it comes to social login users, 75 percent are ages 55 and over. According to the data, 56 percent of consumers leverage social login to avoid filling out online registration forms, while 43 percent simply don’t want to remember another user name and password.

The study also took a look at consumer privacy, revealing that more than 90 percent of consumers are at least somewhat concerned about data privacy and how companies are using customer data. This concern, however, is valid considering 30 percent of consumers say they receive between one and three irrelevant messages per day, while 17 percent say they receive more than 10 irrelevant messages per day. Because of the concern for privacy, consumers are being more conscious of the information they share. For instance, the study found that 58 percent of consumers will share information only if the brand has made it very clear how the information will be used.

"Although data privacy concerns are seemingly at an all-time high, it's evident that consumers are prepared to share their personal information with businesses if presented with a clear value exchange and a high level of transparency," said Patrick Salyer, CEO of Gigya. "In addition, as consumers continue to embrace advanced authentication methods, brands must equip themselves to handle an increasing volume and variety of rich identity data in order provide truly relevant 1:1 experiences."

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