New research by YouGov commissioned by Checkout.com, a leading global digital payments platform, has found that merchants and financial institutions not offering ID verification and biometric payment authorisation are at risk of losing customer trust.

Trust in the Digital Economy reveals that half (49%) of the UK population believe that the future of secure payments online will use digital ID as verification. This revelation comes as the UK government explores plans to develop digital “Britcard” ID cards.

When asked how digital ID verification would impact trust with merchants and financial institutions, the majority (43%) of UK consumers said it would enhance their trust when transacting online (with 33% neutral). 

Despite this demand, only a fifth (21%) of UK consumers currently use a payment method with biometric verification for added security (rising to 27% of Gen-Zs). This means there is significant untapped opportunity for merchants to increase trust in the digital economy by integrating payment flows that offer biometric authentication. 

Interestingly, attitudes towards the types businesses trusted to store biometric data for payments and ID verification vary by gender. 8% more men (15%) are comfortable with fintechs storing their data than women (7%), while 8% more women (23%) are comfortable with food delivery services storing their biometric data than men (15%). Additionally, men are twice as comfortable as women for online gaming and digital content providers to store their biometric data.

The research also revealed the true extent of those targeted by payment fraud. 40% of UK adults report that their card credentials have been stolen in the last 12 months alone. This suggests over 27 million British consumers have been victims of fraud in just the last year. These figures highlight the urgent need for enhanced payments security through methods like 2FA and biometric authentication. 

Jenny Hadlow, Chief Operations Officer at Checkout.com explains, “We are seeing people’s personal experiences with card credential theft - or fear of becoming a victim of fraud - having a very real impact on their online payment preferences. With consumers ever more savvy to the risks they face from sophisticated scammers, they now expect merchants and financial institutions to implement the latest technologies to keep their payments safe online. Trust in digital commerce is critical for both customer and merchant confidence, and meeting demand for enhanced payment security should be a priority for online businesses.”