Sharing Economy & the Need for Identity Verification

Due to the restrictions brought by the COVID-19 pandemic across the world, markets, enterprises, and consumers have slowly adjusted to these changes, and sharing economy has been one great solution to achieve contactless services.


Sharing economy is an economic model known as a peer-to-peer or P2P-based activity where a community-based online platform facilitates acquiring, providing, or sharing access to goods and services.

In sharing economies, individuals and groups use idle assets such as parked cars and space bedrooms as rentals when not in use by their owners; in this way, physical assets are shared in the form of services. The popular Airbnb, known as “staycation” nowadays, is a residential-sharing platform. This is commonly in condo or apartment units that allow consumers to have a short getaway or vacation just around the same region or city by renting out these residential units for a day to three. Booking a service like Airbnb is easy and is usually done through online transactions, such as messaging apps and emails, which meets the new health protocols under pandemic, the contactless transaction.


Since transactions and payments are now being made through online platforms and applications, identity verification has been the center key of security and safety of both sellers and consumers in the market. Identity verification is the vital process of ensuring that consumers are claiming to be, especially in doing payments, opening bank accounts, applying for loans, securing deposits, and more. This system helps counter account fraud and hackings as it is now considered a Know Your Customer or KYC method.

Doing online transactions is easy and convenient, especially with the current situation the globe faces. People can now do almost everything anywhere with the help of their smartphones and gadgets. But due to these market adjustments, sellers and consumers specifically are at the risk of account hacking. Identity verification and device-based authentication are needed for safety and protection and to combat these hackings.

To learn more about the sharing economy and the need for identity verification, you can read this infographic from AuthID.


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