New figures from the World Bank’s ID4D Global Findex Database 2025 show that while the world is making steady progress in closing the legal identity gap, a new, more profound digital identity gap has emerged, leaving 3 billion people unable to access essential online services.
The data shows the number of people without an official proof of identity (such as a birth certificate) has now shrunk to 800 million. This is a significant improvement from the 850 million estimated in 2021 and the more than one billion estimated in 2017.
However, a World Bank blog post highlights a new, more complex challenge: “Close to 3 billion people” remain “out of reach” of digital ID systems, making it impossible for them to access critical digital services.
The Critical “Usage Gap”
The most critical finding in the report is the “usage gap.” Even in countries that have successfully built national digital ID systems (a key component of Digital Public Infrastructure, or DPI), adoption is perilously low. According to the World Bank blog, only 32 percent of adults in countries with such systems are able to access them, and a mere 23 percent employ them for at least one use case.
This data proves that simply building a DPI is not enough. The 23 percent usage rate is the report’s key metric, demonstrating that “if you build it, they will not come” unless the digital ID is a gateway to high-value, essential services. The report contrasts failing systems with successful, inclusive, and widely-used systems like Singapore’s “SingPass” and Uruguay’s “ID Uruguay.”
As in previous reports, the barriers to access remain highest for women, rural inhabitants, low-income populations, and other marginalized groups.
Shifting Development Priorities
This new data signals a major evolution in the global identity problem. The first phase — issuing a foundational/legal ID — is slowly being won. The new, more complex phase is bridging the “digital divide” in using those IDs.
This will likely force a shift in development policy at organizations like the World Bank and UNDP, moving the measure of success away from simple enrollment figures and toward use case integration (e.g., linking the digital ID to G2P payments, health, and education) to drive tangible value for citizens.
The World Bank has been actively supporting national digital ID programs globally, including Nigeria’s expanded 180 million enrollment target through its ID4D initiative, Lebanon’s digital ID transformation, Ethiopia’s Fayda system, and Rwanda’s multimodal biometric authentication system.
Sources: ID4D, World Bank Blog
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By Cass Kennedy
