E-KYC Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Identity Authentication and Matching, Video Verification, Digital ID Schemes, Others), By Deployment Mode (Cloud-based, On-premises), By End-User (Banks, Financial Institutions, E-payment Service Providers, Telecom Companies, Government Entities, Insurance Companies), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 8.77 Billion
CAGR (2026-2031)	18.19%
Fastest Growing Segment	Video Verification
Largest Market	North America
Market Size (2031)	USD 23.91 Billion

Market Overview

The Global E-KYC Market will grow from USD 8.77 Billion in 2025 to USD 23.91 Billion by 2031 at a 18.19% CAGR. Electronic Know Your Customer solutions represent digital mechanisms used by regulated entities to verify client identities remotely through secure document validation and biometric analysis. The market is continually propelled by the rigorous enforcement of financial crime regulations which obligate institutions to implement stringent identity assurance protocols. Additionally, the widespread transition toward digital banking channels and the operational imperative to minimize manual onboarding expenses actively support global market growth. These primary drivers create a sustainable demand for automated verification tools and are distinct from temporary technological trends.

Nevertheless, the expansion of the sector faces a significant challenge arising from the escalating complexity of fraudulent activities such as artificial intelligence generated synthetic identities. These sophisticated threats necessitate constant security updates that can create implementation barriers and increase costs for service providers. According to the FIDO Alliance, in 2024, 53 percent of consumers observed a rise in the volume of suspicious online messages and scams. This documented increase in fraudulent attempts underscores the difficulty in maintaining secure digital environments and poses a potential impediment to seamless user adoption.

Key Market Drivers

The rising incidence of identity theft and digital financial fraud acts as a critical catalyst for the Global E-KYC Market, compelling organizations to adopt advanced verification layers. As threat actors increasingly utilize generative artificial intelligence to manufacture synthetic identities, traditional authentication methods are proving insufficient to protect digital ecosystems. This escalation in sophisticated attack vectors is driving a technological shift toward liveness detection and biometric analysis, which are essential for distinguishing legitimate users from automated bots. According to Sumsub, November 2024, in the 'Identity Fraud Report 2024', deepfake fraud increased four times globally in 2024 compared to the previous year, accounting for 7 percent of all fraud attempts. This data underscores the urgent market necessity for E-KYC solutions that can dynamically adapt to AI-driven threats and prevent large-scale security breaches.

Simultaneously, stringent government regulations and AML/CFT compliance mandates are forcing regulated entities to modernize their onboarding frameworks to mitigate legal risks and operational overhead. The financial burden of adhering to evolving statutes necessitates the deployment of automated E-KYC platforms, which significantly reduce the manual labor required for due diligence while ensuring auditability. According to LexisNexis Risk Solutions, March 2024, in the 'True Cost of Financial Crime Compliance Study – Europe, The Middle East and Africa', the total cost of financial crime compliance in the EMEA region reached $85 billion. Despite the potential friction introduced by these rigorous identity checks, user sentiment remains largely supportive of the added security layers provided by these market solutions. According to Veriff, in 2024, 64 percent of consumers indicated they would accept a longer sign-up process involving an ID document and a selfie if it ensured better personal data protection.

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Key Market Challenges

The escalating complexity of fraudulent activities constitutes a primary restraint on the Global E-KYC Market. As threat actors increasingly deploy artificial intelligence to engineer synthetic identities and realistic deepfakes, solution providers face mounting pressure to develop equally sophisticated defense mechanisms. This dynamic forces a continuous cycle of security updates and infrastructure overhauls, significantly inflating operational expenditures for vendors and implementation costs for end-users. Such financial burdens create substantial barriers to entry for smaller enterprises and delay the procurement processes of larger institutions, effectively dampening the overall momentum of market expansion.

Furthermore, the prevalence of these advanced threats necessitates the introduction of friction-heavy validation steps that contradict the market's goal of seamless onboarding. According to the Identity Defined Security Alliance, in 2024, 90 percent of organizations reported experiencing at least one identity-related security incident within the previous year. This pervasive threat landscape compels regulated entities to prioritize rigorous risk mitigation over user convenience, leading to cumbersome verification protocols that frequently result in higher customer abandonment rates and reduced service uptake.

Key Market Trends

The integration with national digital identity frameworks is emerging as a transformative trend, as solution providers increasingly align their platforms with government-led modernization initiatives. This shift involves the direct incorporation of public sector identity databases and digital wallet standards into commercial verification workflows, creating a unified ecosystem that enhances assurance levels while reducing redundancy. This alignment is rapidly accelerating as governments actively seek private-sector partners to deploy secure citizen services at scale. According to Socure, February 2025, in the 'Socure Verifies Over 2.7 Billion Identity Requests in 2024' press release, the company reported that its partnerships in the public sector grew 193 percent, reflecting the surging demand for compliant identity infrastructure within government channels.

Concurrently, the market is witnessing a significant expansion into telecommunications and non-financial sectors, with digital marketplaces and sharing economy platforms becoming primary adopters of advanced verification tools. Unlike traditional financial institutions, these entities prioritize speed and global coverage to manage high-volume, cross-border user bases while mitigating risks associated with account takeovers and vendor fraud. This broadening of the addressable market is evidenced by the substantial uptick in verification volumes originating from digital commerce sectors. According to Trulioo, December 2024, in the 'Trulioo Transactions Surge 34% for Global Marketplaces' announcement, the firm recorded a 34 percent increase in marketplace transactions over the previous year, underscoring the vital role of E-KYC solutions in securing the wider digital economy.

Segmental Insights

The Video Verification segment is currently positioning itself as the fastest-growing category within the Global E-KYC Market. This expansion is primarily driven by the increasing demand for remote customer onboarding solutions that offer higher security assurance than static document uploads. Financial institutions are adopting live video interactions to detect presence and prevent identity fraud while strictly adhering to anti-money laundering protocols. Furthermore, guidance from international standard-setters like the Financial Action Task Force has encouraged national regulators to legally validate video-based identification, thereby accelerating its adoption across banking and telecommunications sectors.

Regional Insights

North America maintains a dominant position in the global E-KYC market due to the extensive adoption of digital identity solutions across financial services. This leadership is primarily driven by stringent regulatory frameworks aimed at combating financial crimes and identity fraud. For instance, the Financial Crimes Enforcement Network (FinCEN) in the United States mandates rigorous customer due diligence protocols, compelling institutions to implement automated verification systems to ensure compliance. Furthermore, the established presence of key technology providers allows for the rapid integration of reliable identity management tools within the banking and insurance sectors.

Recent Developments

• In September 2025, IDnow entered into a strategic partnership with Docusign to enhance the security and compliance of digital agreements in the German market. This collaboration integrated video-based identity verification services directly into an electronic signature platform, enabling users to complete Qualified Electronic Signatures (QES) remotely. The joint solution was designed to meet strict regulatory standards under the European Union’s eIDAS regulation, facilitating legally binding digital transactions for high-value use cases. This partnership aimed to remove barriers to digital adoption by providing a seamless, secure, and compliant workflow for verifying signer identities.
• In June 2025, Jumio announced the general availability of its Premium Liveness Detection solution to combat the rising threat of generative AI-driven fraud. This advanced product was engineered to detect and block sophisticated spoofing techniques, including deepfakes and injection attacks, during the remote onboarding process. By utilizing randomized color sequences and complex AI analysis, the technology confirmed human presence with a higher degree of accuracy than traditional methods. The launch underscored the company's commitment to providing robust fraud defense mechanisms that adapt to the evolving tactics of cybercriminals in the digital identity space.
• In March 2025, Sumsub launched its Reusable Digital Identity Product Suite, a solution designed to address the inefficiencies of repetitive identity checks. This new product enabled users to undergo a Know Your Customer (KYC) verification process once and subsequently share their verified credentials across a network of participating services without needing to resubmit documentation. The initiative aimed to significantly reduce onboarding time and operational costs for businesses while enhancing user privacy and convenience. This development reflected a broader industry trend towards interoperable identity frameworks that streamline compliance and improve the digital customer experience.
• In April 2024, Entrust Corp completed the acquisition of Onfido, a prominent provider of AI-powered identity verification technology. This strategic move allowed the company to integrate advanced identity verification capabilities into its existing portfolio of security solutions. The collaboration aimed to address the growing prevalence of sophisticated fraud, such as deepfakes and synthetic identities, by combining biometric technology with established digital security frameworks. By bringing these technologies together, the company sought to offer a comprehensive, identity-centric security platform that enables organizations to verify users and protect sensitive transactions globally.

Key Market Players

• 63 Moons Technologies Limited
• IDology, Inc
• Financial Software and Systems Private Limited
• GB Group Plc
• Jumio Corporation
• Onfido Ltd
• TATA Consultancy Services Limited
• Wipro Limited

By Product	By Deployment Mode	By End-User	By Region
Identity Authentication and Matching Video Verification Digital ID Schemes Others	Cloud-based On-premises	Banks Financial Institutions E-payment Service Providers Telecom Companies Government Entities Insurance Companies	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global E-KYC Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• E-KYC Market, By Product:

• Identity Authentication and Matching
• Video Verification
• Digital ID Schemes
• Others

• E-KYC Market, By Deployment Mode:

• Cloud-based
• On-premises

• E-KYC Market, By End-User:

• Banks
• Financial Institutions
• E-payment Service Providers
• Telecom Companies
• Government Entities
• Insurance Companies

• E-KYC Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE