The Future of KYC: Why Free Solutions Are the New Standard

Key takeaways

In 2025, free KYC solutions have become the new standard for regulated industries, enabling fintech, telecoms, banks, and others to reduce costs and scale their operations without compromising security or regulatory compliance.

Didit spearheads the free and unlimited KYC revolution through advanced artificial intelligence, offering fast, secure, and easy-to-integrate identity verifications that meet the most stringent regulations.

The rise in identity fraud, driven by technologies like deepfakes, underscores the importance of adopting robust and accessible verification tools, where free solutions like Didit demonstrate their effectiveness and reliability.

Implementing free KYC significantly improves key metrics such as customer acquisition cost (CAC), the compliance department’s return on investment, and approval times, facilitating innovation and strengthening customer trust.

Identity verification (also known as KYC) has become one of the fundamental pillars for any business that must comply with anti-money laundering regulations, reduce fraud, or simply ensure that their customers are who they claim to be. However, in 2025, the approach to these processes has undergone a 180º shift: paying for each verification is becoming seen as an outdated and highly uncompetitive strategy.

Against this still-common trend, free KYC solutions are emerging as the new standard in diverse industries such as fintech, telecommunications, banking, crypto, and insurance. With technology more accessible and accurate than ever, why continue incurring costs for each identity validation when free and unlimited plans already meet the most stringent regulations?

If you want to learn about KYC trends for 2025, the reasons driving the adoption of no-cost verification tools, and how Didit is revolutionizing the compliance industry with its free and unlimited identity verification plan, keep reading.

KYC Trends in 2025: Adapting to a Changing Market

Regulatory obligations in Know Your Customer (KYC) have tightened in recent years. International bodies like the FATF (Financial Action Task Force) have focused on the importance of identity verification in preventing money laundering and terrorism financing (AML/CFT).

Additionally, the adoption and implementation of new directives (such as AMLD5 and the upcoming AMLD6, eIDAS 2, GDPR for data protection, or MiCA in the crypto space) have increased the need for companies to integrate effective and agile solutions.

In fact, as of 2025, we can highlight several trends that explain why the KYC industry has undergone such a radical transformation:

1. Speed and Automation. Users demand immediate registration processes. A KYC process that takes days, hours, or even several minutes is no longer acceptable: remember that onboarding is the first impression users have of your business.
2. Process Optimization with AI. Artificial intelligence optimizes identity verification processes: this development streamlines document verification and enhances liveness detection to eliminate the possibility of identity theft through frauds like deepfakes, masks, or pre-recorded videos.
3. Global Accessibility. In such an interconnected and globalized context, KYC tools must work with any country, various document formats, and allow customization of regulatory compliance across different regulations.
4. Free Solutions as a Disruptive Element. While the pay-per-check (PPC) model was the norm, in 2025 it is being questioned due to its lack of scalability, direct impact on acquisition costs, and customer retention.

In summary, digital transformation and high competitive pressure are pushing regulated businesses to seek secure, fast, and increasingly free KYC solutions.

Why Free KYC Is the Future for Regulated Businesses

Having a process like KYC be free when it was previously very costly might sound too good to be true. However, integrating such solutions has become an essential strategy to stay competitive in a saturated and highly competitive market.

Here are four reasons why we believe free KYC is the near-future for regulated entities:

• Reduction of CAC (Customer Acquisition Cost): Some studies have shown that companies that have opted for a free KYC model have seen an immediate reduction in customer acquisition costs. If identity verification does not generate a cost with each signup, the savings are transferred to the marketing and sales departments.
• Improved Compliance Department ROI: Adopting an unlimited, no-fee identity verification process boosts internal productivity. The compliance team can allocate more resources to strategic tasks and research instead of worrying about the budget allocated to identity verifications.
• Greater Scalability: For companies with high onboarding demand, scaling from 1,000 to 10,000 verifications monthly can be a headache with traditional pay-per-verification models. By adopting a free plan, that scalability does not penalize the bottom line.
• Strengthened Customer Trust: By not passing costs onto the end user, the onboarding or registration process is simplified and, in turn, conveys an image of innovation and approachability.

All of this aligns with the trend of democratizing identity verification, making a solution that was previously prohibitive for many companies, especially small and medium-sized enterprises and startups, more accessible and transparent.

As Identity Fraud Increases, Related Costs Rise

The rise in fraud is a significant issue for many businesses. Generative artificial intelligence or deepfakes have surged this type of crime in recent years. To give you an idea, in 2024 alone, over a trillion people had their data compromised, a figure four times higher than the previous year. Focusing on the U.S., one in three people experienced identity theft or similar fraud last year. You can see more information on this in the Market US article.

The same applies to bots. Traffic from these agents has skyrocketed in recent months, reaching almost half of the interactions generated in 2024 (49.6%).

In short, fraud is advancing alarmingly, and the main identity verification tools are capitalizing on this to do business: the costs to safeguard businesses are soaring.

What a Free KYC Tool Means for Industries Like Fintech, Telecoms, or Neobanks

Industries with higher regulatory pressure, such as fintech, telecommunications, traditional banking, neobanks, insurance companies, and notably the crypto industry, find in this free KYC approach an ally to balance costs and compliance.

For example, in fintech, the speed of new digital financial products requires an extremely agile KYC process. By not paying for each verification, fintech companies can test and scale different services without compromising their operational budget.

In telecoms and phone operators, identity verification has become critical. The proliferation of eSIMs requires solutions like eKYC, not to mention instant portabilities and fraud in payment plans. A free KYC, adjusted to local and global regulations, reduces the risk of identity theft and minimizes the impact on the compliance or anti-fraud department.

Other expanding sectors, such as the crypto industry or neobanks, must also comply with regulations like the MiCA regulation or the Sixth Anti-Money Laundering Directive (AMLD6): each improperly verified user poses a real threat of sanctions. By opting for a KYC plan that doesn’t charge per verification, complying with regulations is simpler while maintaining profit margins.

In other words, choosing free KYC, in addition to cost savings, also means the ability to innovate faster, meet consumer demand for simpler processes, and position yourself as a leader in an increasingly competitive market.

How Didit Leads the Free and Unlimited KYC Revolution: 4 Reasons We Stand Out

Amid this landscape, Didit has become a benchmark in digital identity thanks to its free and unlimited KYC plan. Why is it so disruptive?

1. Advanced AI at Every Stage. Didit is a digital identity company specializing in identity verification. It leverages this technology throughout the KYC process for document verification, searching for inconsistencies or manipulations; or uses facial recognition techniques with liveness detection to block fraud attempts with deepfakes, masks, or videos.
2. No Cost for Document Verification or Facial Recognition. The core of Didit’s solution is free and unlimited, with no hidden fees. This breaks the traditional paradigm of user or transaction-based fees.
3. Transparent Business Model. Companies that choose Didit’s free plan can perform as many validations as needed. Didit only charges for premium features, such as AML Screening ($0.30/check) or White-Label to fully customize the process ($0.20/verification). In other words, we monetize when the client decides to acquire an extra feature, not for identity verifications.
4. Maximum Regulatory Compliance. Didit allows companies to comply with major directives and regulations (AMLD5, AMLD6, eIDAS 2…). Additionally, we are ISO 27001 certified, ensuring the security and confidentiality of data.

Benefits of KYC for High-Volume Companies

For companies that need to perform thousands of verifications per month, the savings in operational costs are just the tip of the iceberg, although they remain important. Here are some of the main benefits:

• Drastic Savings in Compliance Budget: A real example is GBTC Finance, which reduced its compliance costs by 90% after implementing Didit. When billing per verification disappears, the budget can be reallocated to other key areas of the company.
• Optimized Customer Experience: With no additional costs for identity verification, marketing and development departments can drive frictionless, fast registration offers. The result is a higher conversion rate and a much smoother customer journey.
• Greater Scalability During Demand Spikes: If at any given moment the demand for new users spikes, there’s no need to calculate extra verification costs: Didit’s infrastructure adapts, and teams focus on optimizing the flow rather than balancing the books.

This new standard of free KYC offers flexibility and resilience that are impossible to achieve with other current alternatives in the identity verification market.

Learn More About Free KYC and Its Impact on Your Business

If your goal is to improve approval rates, drastically reduce acquisition costs, or simply adapt to the KYC trends in 2025, Didit’s free plan is designed for you.

At Didit, we have focused on making integration simple. That’s why we have prepared detailed technical documentation and API integration tutorials so you can switch to a free KYC plan today.

At Didit, we continue to work to humanize the internet in the age of AI, offering the only market solution that removes the economic barriers of KYC without compromising quality. Would you like to learn more about our solution and discover how free KYC can transform your company? Click the banner below and start enjoying free and unlimited identity verification.

About the Author

Víctor Navarro

Specialist in Digital Identity and Communication

I am Víctor Navarro, with over 15 years of experience in digital marketing and SEO. I am passionate about technology and how it can transform the digital identity sector. At Didit, an artificial intelligence company specialized in identity, I educate and explain how AI can improve critical processes such as KYC and regulatory compliance. My goal is to humanize the internet in the age of artificial intelligence, offering accessible and efficient solutions for people.

"Humanizing the internet in the age of AI"

For professional inquiries, contact me at victor.navarro@didit.me