Beyond SSO: What Reusable Identity Means for Authentication

Digital identity verification, particularly in regulated sectors, is essential for security, fraud prevention, and compliance.

However, when users need to verify their identity again and again across multiple services, it quickly becomes tiring, impacting the user experience and leading to high drop-off rates.

Reusable identity lets users access multiple services with a single verified identity. In this guide, we'll break down what reusable identity is, how it works, and why your organization should adopt it to increase conversions, reduce operational costs, and deliver a superior user experience.

What is a reusable identity?

A reusable identity is a digital version of a person's verified information—like their name, age, or government ID—that can be used again and again to prove who they are.

Instead of asking users to upload documents, take selfies, or fill out lengthy forms every time they register for a new service, they can verify their identity once and reuse that same verified information across multiple platforms.

This is made possible through verifiable credentials, which are trusted digital documents stored in an ID Wallet on the user's device.

This gives individuals full control over their information and makes it easy for them to share only what's needed, when it's needed.

For organizations, this means faster onboarding, fewer drop-offs, and stronger trust, all while reducing the burden of repeatedly collecting, storing, and verifying identity data.

How is a reusable identity obtained?

Reusable identity credentials can be obtained from trusted sources such as government agencies, banks, or compliance services. These sources issue digital credentials after confirming a person’s identity.

Alternatively, users can also complete a one-time identity verification process (KYC) directly in the Gataca Wallet. This process typically takes just a minute and only needs to be done once.

Once verified, the user receives a set of verifiable credentials that confirm who they are. These can be used repeatedly across different services, removing the need to repeat the same identity checks every time.

In addition, users can also self-issue certain credentials like email addresses or phone numbers, which can be verified on their own.

How does reusable identity work?

Once a person verifies their identity, the verified information is converted into digital credentials and securely stored in their ID Wallet. Access to these credentials is protected by secure authentication methods, such as biometrics (fingerprint or face scan) or PIN code.

When a new service or organization needs to confirm someone’s identity, the process is simple:

1. Scan a QR Code – The person scans a code to start the request.
2. Review – They review exactly which credentials are being asked for.
3. Tap to Share – With a single tap, they agree to share just the required data.

This all takes seconds. The credentials are backed by cryptographic signatures, so the receiving service can trust they’re real with no need to contact the original issuer or manually check documents.

And the best part is reusable identity works across different platforms, industries, and even countries.

Reusable identity comparison

Challenges with traditional identity verification

For years, identity verification has depended on manual checks using physical documents, whether online or in person. While this approach is widely accepted and often legally required, it comes with clear downsides:

• Time-consuming and repetitive: Users must go through the same process for every service or institution.
• Prone to error and fraud: Manual reviews introduce human error and risks like document forgery.
• Overexposure of data: Sensitive documents are frequently copied, stored, or over-shared, creating privacy risks.
• Expensive and hard to scale: For organizations, verifying identities this way creates cost, friction, and inefficiency.

What makes Reusable Digital Identity different from a traditional Single Sign-On?

At first glance, reusable identity might seem similar to traditional Single Sign-On (SSO) systems like Google or Facebook Login. Both let users sign in to different services without creating new accounts each time.

But under the surface, they work in very different ways, with major implications for privacy, security, and control.

Traditional SSO systems use a federated model. A central identity provider authenticates the user and confirms their identity to third-party services. This setup offers convenience but comes at a cost:

• The provider is in control. If the account is compromised, access to all linked services is at risk.
• Privacy concerns. Providers often track user behaviour across different platforms.
• It’s limited in scope. Its use is limited to platforms and apps integrated with the identity provider so you can't use federated SSO at your local bank or government portal.

In contrast, reusable digital identity is built on a decentralized model, shifting control from big tech providers to the users themselves:

• The user is in control. They hold their credentials and decide what to share and with whom.
• No one tracks their activity. There’s no central authority overseeing or logging interactions.
• It works anywhere. Credentials can be used across sectors, borders, and systems, from financial onboarding and healthcare logins to age verification at a bar or purchasing online.

Reusable identity enables the same convenience as SSO but without centralized control, tracking, or ecosystem limitations. It’s SSO redefined.

Reusable identity cross-sector example

Imagine an individual named John has the following verifiable credentials stored securely in their ID Wallet:

• Identity document verified (Government-issued ID)
• Proof of legal age
• Verified diploma
• Proof of address
• Verified email address

Now, John wants to open an account with a new bank.

Traditionally, this process would involve uploading documents, filling out lengthy forms, and waiting for manual reviews—one of the biggest reasons customers abandon onboarding.

But with reusable identity, it’s a seamless experience:

John visits the bank’s website and scans a QR code.

A prompt appears showing which credentials are being requested (i.e., ID document, proof of address and email).

With a single click, John consents to share it directly from their wallet.

In seconds, their identity is verified, the account is created, and they’re ready to use the service without having to undergo a repeated KYC process or re-upload documents.

But the best part is that John can reuse that same set of credentials anywhere that accepts verifiable credentials, for example:

• Accessing a government portal
• Buying age-restricted goods online
• Applying for a postgraduate program
• Verifying identity at a healthcare center

Why is everyone talking about reusable identity?

Reusable identity and the ID wallets that make it possible have been gaining traction for years. But 2024 marked a major turning point.

What’s driving this momentum? A combination of regulatory pressure and growing demand for better online experiences and stronger privacy.

In Europe, the approval of eIDAS 2.0 in May 2024 requires:

1. Every EU country must provide at least one European Digital Identity Wallet (EUDI Wallet) by 2026.
2. Private-sector services that require strong identity checks—like banks, telecoms, and healthcare providers—must accept ID wallets as a valid method of verification.

This makes reusable identity a core part of the European digital ecosystem. But the movement isn’t limited to Europe. Countries and companies around the world are launching digital identity wallet initiatives.

This is possible because ID Wallets use open standards for end-user interoperability. That means:

• Cross-sector: Use the same credentials for banking, education, travel, healthcare, and more.
• Cross-border: Share identity across countries in a legally recognized and standardized way.
• Cross-vendor: Credentials issued to one wallet can be verified through another vendor, thanks to open standards and common frameworks.

This shift moves us away from fragmented identity experiences, where each app or service runs its own siloed process, toward a model where identity is reusable, recognized, and portable anywhere it's accepted.

Analysts are taking note. According to Liminal, a digital identity research firm, the reusable identity market is projected to grow from $32.8 billion in 2022 to $266.5 billion by 2027 at a compound annual growth rate of nearly 69%.

Benefits of Reusable Identity

For Individuals:

• Convenience: ID Wallets facilitate online verification as users can prove who they are or any information about themselves with just one click anywhere at any time (and without passwords!). No more repetitive data entry, document uploads, or awkward selfies.
• Portability: Users can store and access all their digital credentials from a single app on their mobile device, eliminating the need to carry multiple physical documents.
• Global recognition: Verifiable credentials adhere to international standards, ensuring they are recognized and accepted globally.
• Data Control: Individuals have greater control over their data. They can choose what data to share and with whom. They can also opt to disclose only specific details, such as sharing just their name and last name without revealing their address when sharing a National ID.
• Robust Protection: Verifiable credentials are fortified with cryptographic security so that individuals can trust that their personal information remains secure.

For Organizations:

• Enhance User Experience: ID Wallets give users passwordless, instant access to online services, eliminating friction during onboarding and lowering abandonment rates.
• Increase Security: ID Wallets use biometrics, strong encryption, and distributed storage to minimize the risk of large-scale data breaches.
• Cost Saving: Reduce operational expenses related to customer identity verification processes, compliance, and data storage.
• Reduce Identity Fraud: Verifiable credentials use advanced cryptography so you can automatically verify their data authenticity and issuer organization.
• Lower Admin Burden: Ease operational processes by reducing paperwork and verification hurdles.
• Regulatory Compliance: Achieve compliance with eIDAS in Europe and KYC and data protection requirements (GDPR, CCPA, HIPAA).

How Gataca enables reusable identity

At Gataca, we help businesses stay ahead by making it easy to work with digital ID wallets. Our platform enables you to issue and verify digital credentials to and from your customers' ID wallets so you can allow trusted interactions with them.