From identity to impact: How digital ID accelerates financial inclusion worldwide
By Visa
Research insights from Visa Government Solutions uncovers how digital identity (ID) is transforming government services – unlocking access, enhancing security and accelerating financial inclusion across the globe.
Digital ID is a powerful agent for change when incorporated into payment systems, prompting inclusion and economic participation for both the masses and marginalised communities. Image: Canva
Digital ID is more than a tool for verifying identity. It’s a foundational enabler of secure, efficient access to digital services – services that are critical to economic development and financial empowerment. Yet, billions of people globally still lack a digital identity that allows for simple and secure identification and authentication online.
When integrated into payment systems, digital ID becomes a powerful catalyst for progress. It reduces fraud, streamlines processes and expands access to financial services, helping both governments and businesses achieve more, faster.
Visa’s recent research explores how digital ID systems like Ukraine’s Diia and India’s Aadhaar are reshaping public infrastructure and delivering tangible benefits at scale.
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Diia: A digital lifeline in Ukraine
Launched in 2020, Ukraine’s government superapp, Diia, marked a historic milestone for state-owned digital platforms globally as it announced a revenue generation model in preparation for an Initial Public Offering (IPO) in the future.
Originally designed to provide digital access to driver's licenses and passports, Diia now supports over 21 million users with access to 24 types of documents and more than 30 government services.
Among its most impactful features is tax collection. By allowing citizens to log in using their bank credentials, Diia automatically links all payment methods registered with that financial institution – simplifying tax payments and verifying eligibility for government benefits.
Even during the country's invasion in 2022, Diia remained a vital tool. It introduced digital innovations such as simplified digital ID, digital passports, war bonds, translated documents for faster border crossings and a one-time relief payment of U₴ 6,500 (S$201) for those in war-affected areas.
Aadhaar: Driving financial inclusion in India
India’s Aadhaar system, the world’s largest digital ID platform, has issued unique 12-digit identification numbers to over 1.3 billion users. By linking biometric and demographic data, Aadhaar has enabled millions from marginalised communities to access banking and government services.
Aadhaar’s integration with the JAM Trinity (Jan Dhan-Aadhaar-Mobile) has transformed welfare delivery. Through direct benefit transfers (DBT), subsidies and aid now reach millions of disadvantaged individuals directly – cutting out inefficiencies and fraud in a country of over 1.4 billion people.
A key driver of this success is its alignment with the Pradhan Mantri Jan Dhan Yojana (PMJDY) programme, which helped open over 523 million new bank accounts. This initiative has brought vast unbanked populations into the mainstream financial system, boosting transparency, inclusion, and economic participation.
Aadhaar stands as a global benchmark for how digital ID can empower citizens, streamline governance and build resilient digital economies.
This is the second of two articles on Visa Government Solutions’ digital identity and payments research insights. You can read the full research paper here and part one here.