More Than 8 in 10 UK SMEs Would Pay for Digital Company ID – CFIT Research

85% of UK small and medium-sized enterprises (SMEs) would be willing to pay for a Digital Company ID service, according to research commissioned by the Centre for Finance, Innovation and Technology (CFIT).[1]  The findings demonstrate the strength of demand from SMEs for technologies that can drive efficiencies, reduce fraud risk and improve access to credit. They also serve to underline the commercial potential of the UK’s digital identity market.

The polling, conducted in partnership with research firm Opinium, canvassed the views of 1,000 decision-makers at UK businesses with fewer than 250 employees. Their responses also showed that the larger the business, the more open it was to paying for a Digital Company ID.

Respondents ranked improved fraud detection, simplification of regulatory compliance and easier account onboarding as the key areas in which potential efficiencies and savings would justify the expense. Half those surveyed said Digital Company ID would lead to more secure payments and avoid payment scams. Just under 60% thought it would help reduce the time taken to submit company accounts, complete tax returns or apply for a license or permit for compliance purposes. And 65% thought it would save money when opening a bank account.

The findings are a boon for the growing UK market of digital identity providers and aggregators. Research published in May by the Office for Digital Identities and Attributes, which enables the use of trusted digital identity services in the UK, sized the digital identity market at >250 firms (three-quarters of which are headquartered in the UK). These businesses already employ more than 10,000 people, generating over £2bn in annual revenues and growing 12% year-on-year.[2]

The unmet demand among SMEs for a paid Digital Company ID service will act as an extra tailwind to the sector’s growth. In addition, further analysis commissioned by CFIT identifies a total addressable market of not just SMEs, but also accountants, banks, government departments, local authorities, other corporations and payment service providers.

Rob Haslingden, Head of Impact Assessment and Engagement at CFIT, said: “With the SME Digital Adoption Taskforce having recently set out its recommendations for driving up tech adoption by SMEs, our research shows that we will be pushing at an open door, if we can offer businesses a Digital Company ID product that improves efficiency, security and trust. What’s more, demand should only increase further, as consumers become more comfortable with individual Digital ID, following the recent passage of the Data (Use & Access) Act and the roll-out of the GOV.UK Wallet. This will improve the accuracy of business verification by proving the identity of individual directors and employees.”

In March, CFIT’s industry-wide coalition on fighting economic crime through Digital Company ID published its blueprint report. It found that Digital Company ID will help mitigate against the annual £6.8bn cost of fraud to the UK economy, including through unified and secure data-sharing that disrupts fraud networks and closes exploitable gaps. As effective data-sharing requires a critical mass of companies to realise the network effect benefits, SMEs’ willingness to adopt the technology is crucial to its potential to reduce fraud.

The commercial viability of offering a Digital Company ID will also help encourage and accelerate the development and roll-out of new use cases that haven’t previously been considered. CFIT has convened three industry-led working groups, one of which is focused on identifying additional use cases for Digital Company ID. The other two are looking at building a viable Digital Company ID prototype and defining the necessary trust and governance requirements to implement the Digital Company ID. These working groups will report their findings and recommendations in December.

[1] 85% of respondents expressed willingness to pay through an annual fee pricing structure only. 80% supported a paid Digital Company ID service with both annual and transactional costs.

[2] Digital Identity Sectoral Analysis 2025