Digital reusable identity: What is it and how to use it

What is reusable digital identity? 

To explain the reusable identity meaning, we can think of reusable identity as a universal key for the digital world. Just as a master key opens multiple doors, a reusable digital identity unlocks access to various online services without requiring separate verification processes for each one. 

At its core, a reusable identity is a verified, secure credential that users can apply across multiple platforms and services. Once their identity has been authenticated through a trusted process, whether through government eID systems or eIDV (electronic identity verification, such as biometric identity verification or KYC), that verification becomes portable. Users can use it to access multiple services, apps and websites without starting the identification process from scratch. 

For users, this means fewer passwords, fewer forms, and faster access. For organisations, it simplifies onboarding, enhances security, and ensures compliance. 

When designed properly, a reusable digital identity app ensures security, privacy, and trust while enabling frictionless and consistent digital experiences.

The identity gap: Why traditional systems fall short 

Even with advancements in digital onboarding, most organisations today face a fragmented identity landscape: 

• Different identity systems for different products or markets 
• Repeated onboarding for the same users across services 
• Duplicated credentials and inconsistent user experiences 
• Limited personalisation due to missing identity attributes 

This identity gap slows down onboarding, increases drop-offs, and prevents businesses from building trusted, data-driven customer relationships. 

Reusable identities close this gap by replacing scattered systems with a unified identity layer; one secure, flexible, and scalable approach that works across services, regions, and platforms. 

Pros and cons of traditional identity systems and reusable IDs (ReuseID)

Who needs reusable digital identity? 

Reusable digital identity addresses critical pain points across multiple stakeholders in the digital ecosystem. Understanding who benefits most helps clarify the digital technology's transformative potential. 

Financial services and fintech companies

These face the steepest identity verification requirements. Banks, investment platforms, and payment providers must comply with stringent AML and KYC regulations whilst maintaining competitive onboarding experiences. Traditional digital verification processes can take days and involve multiple document checks, creating friction that drives customers to competitors. 

E-commerce and digital marketplaces

It's common for these types of companies to lose substantial revenue to cart abandonment during account creation. Age-restricted products, high-value transactions, and marketplace seller verification all require identity checks that interrupt the purchasing flow. Reusable identity enables instant verification without disrupting the shopping experience. 

Healthcare organisations 

Handling sensitive patient data requires secure access controls and regulatory compliance. Telemedicine platforms, prescription services, and health insurance portals need reliable identity verification whilst maintaining GDPR compliance. Traditional systems often create barriers to care access. 

iGaming and entertainment platforms 

These platforms increasingly face strict age verification requirements and anti-money laundering obligations. These industries experience high customer acquisition costs, making the friction in the onboarding process particularly expensive. Instant and secure identity verification through reusable credentials dramatically improves conversion rates whilst ensuring compliance. 

Educational institutions and certification bodies 

These organisations need secure student verification for online courses, exam proctoring, and credential verification. Remote learning growth has intensified demand for reliable identity solutions that work across different platforms and institutions. 

What are the benefits of reusable identity? 

Reusable identity creates value for both individuals and organisations by addressing fundamental inefficiencies in traditional identity systems. 

Reusable identity benefits for individuals 

• Less complex and faster digital experiences eliminate repetitive verification. Users verify their identity once through a trusted source, then access multiple online services instantly. This approach saves hours of form-filling and document uploading whilst providing consistent access across platforms. 
• Enhanced privacy control gives users greater visibility and control over their personal data. Unlike traditional systems where personal information spreads across multiple databases, reusable identity systems often include consent management tools that let users decide what information to share with which services. 
• Improved security reduces exposure to data breaches and identity theft. Instead of storing personal information across dozens of platforms with varying security standards, sensitive data remains with trusted identity providers who maintain higher security protocols. 
• Reduced password fatigue decreases reliance on traditional password-based authentication. Reusable identity often incorporates biometric authentication or secure tokens, reducing the need to remember multiple complex passwords or deal with account recovery processes. 
• Mobile-first convenience enables seamless authentication across devices. Modern reusable identity solutions work efficiently on smartphones, tablets, and desktop computers, providing consistent experiences regardless of how users access services. 

Reusable identity benefits for organisations 

• Accelerated customer onboarding process dramatically reduces time-to-value for new customers. Businesses report onboarding time reductions from 15 minutes to under 2 minutes when implementing reusable identity solutions. This improvement directly impacts conversion rates and customer satisfaction. 
• Reduced compliance burden leverages existing verification processes from trusted sources. Instead of implementing costly KYC infrastructure, businesses can accept pre-verified credentials that meet regulatory requirements while reducing operational overhead. 
• Lower customer acquisition costs result from improved conversion rates and reduced abandonment. Industry data suggests that the most advanced identity verification solutions can dramatically improve conversion rates, directly impacting marketing ROI and customer acquisition efficiency. 
• Enhanced fraud prevention benefits from centralised, high-standard verification processes. Reusable identity providers typically invest heavily in fraud detection and prevention technologies, offering better protection than individual businesses could achieve independently. 
• Improved customer insights come from unified identity attributes across touch points. Businesses gain clearer pictures of customer behaviour and preferences whilst maintaining privacy compliance through proper consent management. 
• Scalable growth support enables businesses to expand into new markets or services without rebuilding identity infrastructure. Reusable identity solutions typically support multiple verification methods and regional requirements, facilitating international expansion. 

How Reusable Identity Works 

The technical implementation of reusable identity involves several sophisticated yet user-friendly processes that balance security with convenience. 

Initial verification and credential creation begin when users undergo comprehensive identity verification through trusted sources. This might involve scanning government-issued documents, completing biometric authentication, or using existing verified identities from banks or government eID systems. The verification process creates encrypted digital credentials containing essential identity attributes. 

Secure storage and protection ensure verified identities remain tamper-proof and private. Leading solutions use advanced encryption technologies or decentralised storage methods to protect identity data. Some systems employ blockchain digital technology for additional security and transparency, whilst others use secure cloud infrastructure with multi-layered access controls. 

Cross-platform authentication enables verified credentials to work across multiple services within an ecosystem. When users attempt to access new services, their reusable identity provides instant verification without requiring additional document uploads or verification steps. The authentication process typically involves secure token exchange or cryptographic proof of identity. 

Additional security layers activate for high-risk transactions or sensitive operations. These might include biometric re-verification, one-time passwords, or multi-factor authentication. The layered approach ensures that routine access remains frictionless whilst high-stakes transactions maintain maximum security. 

When using fixed reusable identities, there's a need for ecosystem integration and interoperability to connect different identity providers and service platforms through standardised protocols. This integration enables reusable identities to work across various organisations and platforms whilst maintaining security and privacy standards. 

With advanced software like ReuseID, separate integration for onboarding and authentication isn’t needed; they’re combined into a single seamless process. Organisations can also collect additional attributes only when required, avoiding unnecessary costs for unused credentials. ReuseID offers the perfect balance between cost-efficiency and strong identity management, providing maximum security and compliance for all transactions, even high-risk or sensitive ones.

How reusable identities are shaping the real world 

Reusable identities benefit a wide range of industries, especially those where security, compliance, and user experience are critical: 

• Banking & financial services – Simplify AML/KYC digital onboarding, reduce fraud, and enable frictionless multi-service authentication. 
• eCommerce – Faster checkouts, GDPR-compliant data handling, and personalisation at scale. 
• Healthcare – Secure, verified patient data sharing (compliant with data protection standards) while meeting regulatory requirements. 
• Gaming – Instant biometric login process, age verification, and better fraud prevention. 
• Cross-border platforms – Enable a swift digital onboarding process even where national eIDs are unavailable 

Types of reusable identity 

Not all reusable identities are the same. They can take different forms, with varying security, convenience, and trust levels.  

1. Government-issued digital identities  

These are digital versions of official identity documents, such as eID cards or mobile-based IDs issued by governments. An example would be eHerkenning in the Netherlands, a government-backed, trusted digital identity system for accessing public and private services.  

2. Bank-based identities  

Many banks issue digital identities verified through stringent KYC (Know Your Customer) processes. Users can often leverage these identities beyond banking services, such as in fintech apps or while accessing e-government facilities. Examples include BankID in Sweden, which citizens and businesses use for secure online verification.  

3. Self-sovereign identities (SSI)  

Self-sovereign identity frameworks offer a decentralised approach to identity management, giving users full control over their data according to the data protection regulation. Built on blockchain, it ensures tamper-proof, secure, and private identities. The European Blockchain Services Infrastructure (EBSI) is an example, using blockchain to enhance privacy and security for digital identities.  

4. Platform integrations (e.g., Signicat’s ReuseID solution)  

Solutions like Signicat’s ReuseID offer customisable, scalable, reusable identity options. Businesses using ReuseID ensure compliance while simplifying identity verification for customers across multiple touch points. These solutions excel in high-trust industries like banking, healthcare, and e-commerce.  

Meet ReuseID: Signicat’s reusable identity solution 

ReuseID goes beyond basic reusable credentials. It delivers a unified identity layer designed for regulated industries where security, compliance, and scale matter most. 

With ReuseID, you can: 

• Eliminate friction in the onboarding process – Onboard users once, authenticate them anywhere with a mobile-first login process. 
• Unify your identity stack – Replace siloed systems with one identity layer (onboarding with eID or eIDV and authentication with MobileID in one). 
• Reduce fraud risks – Built-in biometrics, behavioural analytics, and AI-driven anomaly detection. 
• Stay compliant – GDPR, eIDAS, PSD2, AML, DAC7, and more, all handled within one platform. 
• Gain control – Decide which attributes to collect, when to collect them, and how they’re used. 

By closing the identity gap, ReuseID empowers organisations to verify once and authenticate forever, making digital identity management simpler, safer, and future-ready.