Utah forms digital ID consortium

Utah is leading a new push for decentralized digital identity that could change how you verify customers for financing. The state has formed a consortium to promote a model where individuals, rather than governments or tech giants, control their own personal data. For retailers and service providers, this signals a shift toward 'self-sovereign identity' in the credit application process. Currently, when a customer applies for a loan or BNPL plan at your register, they often rely on third-party bureaus or manual document uploads to prove who they are. This new framework aims to streamline that. It uses digital wallets to hold verified credentials like driver’s licenses. When a customer wants to finance a purchase, they can share specific, verified data points instantly. This reduces the risk of identity fraud and speeds up the 'know your customer' (KYC) checks that often slow down the sales floor. While this is currently a state-led initiative in Utah, the goal is to create a national standard. As this technology matures, expect to see financing platforms integrate directly with these digital wallets. This will lead to higher conversion rates because customers won't have to dig for physical IDs or remember social security numbers to complete a credit application.

Source: Payments Dive

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