Using Digital Identity to Support Access to Payments
Payments Access
2025 • No. 25-1
October 2025
Digital Object Identifier (DOI): https://doi.org/10.29338/pa2025-01
The rapid growth of digital payments, driven by technological advancements and a digitally dependent economy, has significantly enhanced financial access for consumers and businesses. However, some consumer segments may be distrustful initially of the technology and face barriers relating to stringent identity verification requirements. This paper explores possible digital identity technology solutions to support financial access amidst the expansion of digital payments and financial services while aiming to prevent fraud and ensure regulatory adherence.
The analysis, conducted by the Federal Reserve Bank of Atlanta and others, examines these barriers and gathers subject matter experts to identify how to incorporate solutions for enhanced compliance, risk management, and financial crimes prevention. The study highlights that current technology, when implemented safely, can effectively carry out identification and authentication processes, offering benefits such as cost efficiency, administrative efficiency, enhanced privacy, and fraud protection.
JEL classifications: O32, O33, E42, D12
Key words: payments access, payments inclusion, financial inclusion, digital identity, consumer identity