Despite the rampant economic effects of the COVID-19 pandemic, share-based enterprises have seen continual growth in recent years. Countless people have considered it an ideal alternative in a world where contactless transactions have become the norm. The billion industry is expected to grow further, with studies forecasting that the market will grow to a value of $335 billion by 2025.
However, as more people flock into sharing economy applications, the industry is also attracted to attacking the sector. A massive amount regularly circulates within the industry, and bad actors will not hesitate to take advantage of this should they have the opportunity. Without robust security measures, like a comprehensive identity verification system, companies are risking significant financial and reputational damage in the hands of fraudsters.
Although numerous companies already employ strict protection in their websites, it still has its lapses, leading to multiple consequences later on. The inconsistency of implementing security measures in the industry can significantly compromise confidential data and cause enormous financial losses. It can also be a gateway for fraudsters as signing up for the service can be more accessible.
Since trust is critical in share-based businesses, providing the highest security and customer experience is essential. This significantly affects client retention, especially in a digital world where consumers can easily switch to other brands. Integrating modern digital security methods like biometric identification can substantially improve protection against malicious people and minimize friction with consumers during the sign-in process.
Organizations can build up strong trust and connection with their customers through robust identity authentication measures. Apart from this, they can make the security process easier for the clients who regularly check their accounts. It can also ensure that the transactions are done by two legitimate parties and not by someone who has harmful intentions.
To learn more about the sharing economy and the need for identity verification, check this infographic provided by authID.