The popularity of smartphones has brought massive changes to countless industries worldwide. This contributed to the constant increase in media consumption, as people can now do numerous transactions with just a few clicks. In addition, the rise of mobile phones allowed many companies to build modern business models that will make life easier for consumers, leading to the growth of peer-to-peer (P2P) or share-based brands in recent years.
From a $15 billion value in 2014, the sharing economy industry has constantly grown over the years, with experts forecasting it to be valued at $335 billion by 2025. Well-known organizations like Airbnb and RVshare reported a significant increase in their profit and customer interest.
The rise of sharing economy makes doing transactions more accessible for countless people. It makes a safer alternative to going out to physical offices, especially with the need for contactless services amid the COVID-19 pandemic.
Nevertheless, since most share-based enterprises operate online, it is also a constant target of cybercriminals. Bad actors often exploit the digital platforms of the institutions to swindle money and classified details. This is why deploying identity-based security measures, such as online identity verification systems, has become prevalent worldwide.
In sharing economy services, both sides of the transaction must disclose various information before pushing through. Modern digital security tools like biometric authentication can ensure that the people involved are legitimate merchants and consumers. This can also prevent potential data breaches due to fragile cybersecurity methods like passwords or PINs.
Furthermore, modern cybersecurity solutions can make it easier for consumers to utilize the brands’ digital platforms. There will be less friction when jumping between applications, significantly improving customer retention. It will also prevent users from forgetting knowledge-based credentials, resulting in clients being locked from their accounts.
To learn more about the sharing economy and the need for identity verification in the industry, check this infographic from authID.