Identity Verification

Top Identity Verification Solutions for Online Businesses 2023


Identity verification is becoming more and more important to online businesses. Knowing who you’re working with is more crucial than ever, from cybersecurity to fraud prevention to compliance.

Let’s look at identity verification (IDV), what it means for various organisations, why it’s crucial, how to do it correctly and compare IDV solutions to give you a variety of choices.

What Is Identity Verification Software?

Identity verification software is made to assist businesses in realising who their customers are. It’s critical to verify a person’s identity since it’s simple to create false identities online. Complying with compliance, privacy, and anti-fraud regulations may also be required by law.

Top Identity Verification Software Features

Still confused about what makes good identity verification software? This list of the best features might help:

Identity Verification

Identity verification is the process of confirming the identity of individuals by validating their personal information and credentials. It involves verifying documents such as government-issued IDs, passports, or driving licenses. Identity verification helps businesses establish trust with their customers and protect against identity theft or impersonation.

AML Screening

AML screening is a critical component of risk management in financial institutions. It involves conducting checks against global watchlists and databases to identify individuals or entities involved in money laundering, terrorist financing, or other financial crimes. AML screening helps institutions comply with regulatory obligations and mitigate the risks associated with illicit activities.

KYC Verification

KYC verification is the process of verifying the identity of customers and assessing their risk profile to ensure compliance with regulatory requirements. It involves collecting customer information, validating it against reliable sources, and conducting due diligence checks. KYC verification helps prevent fraud, money laundering, and other financial crimes and enables businesses to establish trustworthy relationships with their customers.

Digital Onboarding

Digital onboarding refers to the process of acquiring new customers or users through digital channels, without the need for physical presence or paperwork. It enables a seamless and convenient customer experience while ensuring compliance with regulations. Digital onboarding typically involves collecting customer information, performing identity verification, conducting AML screening, and completing the KYC process, all through online platforms.

Government Verification APIs (such as Aadhaar Verification and PAN Checks)

Government Verification APIs offer businesses and institutions access to reliable government databases and services for identity verification and compliance purposes. For example, Aadhaar Verification is an API provided by the Unique Identification Authority of India (UIDAI) that allows businesses to verify the authenticity of an individual’s Aadhaar card, a unique identification number issued by the Indian government. PAN checks refer to the verification of permanent account numbers issued by the Indian Income Tax Department.

By integrating government verification APIs into their systems, businesses can leverage the trust and accuracy of government databases to streamline and enhance their identity verification, AML screening, KYC verification, and digital onboarding processes. These APIs enable faster, more reliable, and compliant customer onboarding, reducing manual efforts, enhancing security, and ensuring regulatory compliance.

List of the Best Identity Verification Software

Solutions covered by IDcentral include: 

  1. AI-enabled, Real-time Digital Identity Verification
  2. Document Extraction and Verification
  3. Face & Fingerprint Biometric Verification
  4. Digital Onboarding with Liveness checks Verifying Customers for digital Coupons and Promotions

iDenfy: Risk Scoring based IDV

Trulioo: Wide spread over 195 countries

Onfido: IDV by Identity Experts

Jumio: ID and Selfie based checks

IDfy: Identity verification & BGV platform

The 7 Best Identity Verification Software

All of the software options we’ve chosen are worthwhile to explore, either alone or in combination. Some of the software solutions below are outstanding for document verification, while others provide supplementary insights to assist the IDV process.


IDcentral offers a range of solutions, including AI-enabled real-time digital identity verification, document extraction and verification, face and fingerprint biometric verification, and digital onboarding with liveness checks. Their advanced technologies ensure secure and accurate identity verification, making them a reliable choice for businesses.

  • AI-enabled Real-time Digital Identity Verification: IDcentral utilizes cutting-edge AI technology to deliver real-time identity verification, ensuring accuracy and speed. This means businesses can instantly verify customer identities, preventing fraudulent activities and ensuring a secure environment.
  • Document Extraction and Verification: IDcentral’s advanced document extraction and verification capabilities guarantee reliable results. By extracting and analyzing data from documents, they ensure the authenticity and integrity of customer information, reducing the risk of identity theft and fraud.
  • Face & Fingerprint Biometric Verification: With IDcentral, businesses can leverage face and fingerprint biometric verification for an added layer of security. These advanced biometric measures ensure that the person being verified is indeed the rightful owner of the identity being presented.
  • Digital Onboarding with Liveness Checks: IDcentral’s digital onboarding process includes liveness checks, adding an extra level of security and ensuring that customers are physically present during the verification process. This feature significantly reduces the risk of impersonation and enhances the overall customer experience.

In contrast, while the other solutions mentioned may offer basic identity verification features, they lack the advanced technologies and comprehensive capabilities of IDcentral. This makes them average or subpar options for businesses seeking robust and secure identity verification solutions. specializes in verifying customers for promotions and discounts. Their platform offers secure and trusted identity verification services, allowing businesses to authenticate the identity of their customers and provide personalized offers or benefits.


iDenfy provides end-to-end verification solutions with risk scoring capabilities. Their platform combines various verification methods, including document checks, facial recognition, and biometric data analysis, to ensure comprehensive and reliable identity verification.


Trulioo is a global identity verification company that enables businesses to verify customers in 195 countries. Their platform offers extensive coverage and access to a vast network of data sources, ensuring reliable and compliant identity verification on a global scale.


Onfido combines AI and identity experts to deliver robust identity verification solutions. Their platform utilizes advanced facial recognition, document verification, and fraud detection techniques to provide secure and accurate identity verification services to businesses across industries.


Jumio is a pioneer in the ID and selfie approach to identity verification. Their platform offers innovative technologies that leverage AI and biometrics for secure and user-friendly identity verification. Jumio’s solutions are widely used by businesses to prevent fraud and enhance customer trust.


IDfy is an identity verification and background verification (BGV) platform. Their comprehensive solution covers identity verification, address verification, employment verification, and more. With their advanced technology and extensive verification capabilities, IDfy helps businesses make informed decisions while ensuring compliance and reducing risks.

Why Use Identity Verification Software? 

Although it is possible, the procedure is time-consuming and resource-intensive. Open source databases may be used to manually check user information. On-site development of a solution is also feasible, but it is expensive and taxing on your development team.
You can: 

  • Automate the procedure to grow your operations by including identity verification from a third-party source.
  • Leave the updates in the vendor’s hands.
  • Benefit right away from an Identity Verification provider’s technology.

Because of this, an increasing number of businesses now only pay monthly, yearly, or per-verification fees to SaaS (Software as a Service) providers for identity verification.

Use Cases for Identity Verification

A rising number of businesses now do identity verification in some capacity. The following are the reasons:

  1. Streamline Customer Onboarding: Simplify and accelerate the process of verifying new customers, reducing friction and improving the onboarding experience.
  2. Fraud Prevention: Mitigate the risk of fraud by verifying the identity of individuals, preventing unauthorized access and protecting sensitive data.
  3. Financial Services: Enable secure transactions and comply with regulations by verifying the identities of customers before granting access to banking, lending, or investment services.
  4. E-commerce: Build trust with customers and reduce fraudulent activities by verifying the identities of buyers and sellers in online marketplaces.
  5. Sharing Economy: Ensure trust and safety in peer-to-peer transactions by verifying the identities of both service providers and consumers.
  6. Gaming and Online Communities: Enhance user security and prevent fraudulent activities such as account takeovers by implementing identity verification for user registration and login processes.
  7. Age Verification: Verify the age of users to comply with legal requirements and prevent minors from accessing age-restricted content or services.
  8. Travel and Hospitality: Enhance security in the travel industry by verifying the identities of passengers, ensuring smooth check-ins, and preventing fraudulent bookings.
  9. Remote Employment: Verify the identities of remote employees to ensure a secure workforce and protect sensitive company information.
  10. Government Services: Ensure the integrity of government services by verifying the identities of individuals accessing government portals, applying for licenses, or receiving benefits.


Identity verification is a critical component of the KYC (Know Your Customer) procedure. It is a means of verifying that the user is who they claim they are and that they participate when they initially join the service or platform. They will then be validated the next time they are seen.

Methods of Identity Verification

While numerous manufacturers provide identity verification software, not all of them use the same tools. Here are some common characteristics to consider when selecting an identity verification provider:

Document Verification and Video KYC

Customers can upload photographs of official papers such as passports, ID cards, residence permits, or driving licences to some retailers. They also require a selfie ID, usually, with a piece of paper showing the application date, this technology is also referred to as liveness detection.

The files are then authenticated through a network of third-party verification services. The process is often referred to as eKYC (electronic Know Your Customer) checks.

There are a few issues with this method: it is high-friction, which means it may frustrate users if the process doesn’t work perfectly. Moreover, some customers may be reticent to submit their personal documents to a company. 

Finally, fraudsters can easily pass the process using stolen ID documents and photoshopped files. It’s also worth noting that deepfakes are increasingly affordable and easy to create, and are often used to fool liveness verification checks.


Biometrics are bodily measures that should be distinctive to each person. This might feature a fingerprint scanner, facial ID, or voice recognition, among other things. 

It is a growingly common procedure that is less invasive than document verification. Statista predicts that the biometric technology industry will be worth $55.42 billion by 2027. 

Unfortunately, biometric identification can complicate the user experience and result in a high proportion of false positives.

Biometrics of Behaviour

Behavioural biometrics are measures that are connected to user behaviour patterns like as surfing behaviours, mouse movement, scrolling speed, and even value copy and paste. 

A system that determines whether a credit card’s CVV or CVC has been copied into the field rather than entered is an excellent example. This is seen as a red flag. 

However, with an increase in fraudsters gaining possession of people’s phones, the security of MFA and OTP is jeopardised if the device falls into the wrong hands.

Identity verification may be complicated and burdensome, especially if legal standards must be met. The good news is that there is an increasing number of outstanding SaaS fintech firms that allow you to easily and effectively incorporate ID verification.

Of course, not all ID verification software suppliers will meet your demands, which is why it’s critical to understand just what products are appropriate for you. This handbook should serve as an excellent introduction to the subject. 


Who would require identity verification software?

Identity verification software is useful for compliance, KYC verification, and anti-fraud purposes. It is vital to understand who you are dealing with in order to guarantee that your business may flourish securely.

How does identity verification work?

Manual identity verification is possible, as well as using specialised software. The techniques include behaviour analytics or alternative data profiling, biometrics, and multi-factor authentication.

What Identity Verification features should I look for in an IDV software?

Your use case will affect the software that you select. You should be able to cross-reference IDs with certain watchlists, for example, if it’s for AML and KYC. It’s crucial to make use of various data profiling methods to decrease fraud. 

What is the cost of identity verification software?

The majority of identity verification programmes are bought through monthly subscriptions. Paying for API calls is another option. 

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