On 1 July 2025, South Africa’s Department of Home Affairs (DHA) implemented a 6,500% fee increase for digital identity checks — raising the price from R0.15 to R10 per real-time verification. In our previous article, we explored how this move disrupted the digital identity ecosystem, undermined financial inclusion, and placed a heavy burden on accountable institutions.
Now, we turn to the next chapter: how we are turning a crisis into opportunity by rethinking our product architecture, reducing its dependence on state databases, and expanding biometric identity coverage in ways that support both compliance and innovation.
A sector in shock
The DHA’s decision sent immediate shockwaves through the industry. Banks, fintechs, crypto platforms, and telecoms were suddenly faced with difficult decisions: absorb the cost, pass it on to customers, or fall back on outdated manual processes that are slower, riskier, and more prone to fraud.
We recognised this not only as a regulatory shift — but as a systemic risk to South Africa’s digital identity future.
The DHA justified the change by pointing to underinvestment, infrastructure failures, and national security concerns. But as we shared in our earlier response, the decision lacked transparency and failed to consider the impact on the very organisations driving digital transformation and inclusion.
“The R10 fee not only punishes innovation — it threatens to undo years of progress in digital identity,” said our Managing Director, Craig Hills.
“For many institutions, real-time verification is a non-negotiable. You cannot safeguard identity or prevent fraud on yesterday’s data.”
How we responded
Rather than wait for a policy reversal that may never come, we moved quickly to reinvent the way our identity verification platform works — expanding our biometric approach and reducing our reliance on DHA systems altogether.
We had already built a proven solution for non-resident identity verification, using passport capture, document checks, and facial comparison to confirm identity with high accuracy. Now, we’ve taken that same technology and applied it to South African-issued ID documents, including:
- Green barcoded ID books
- Smart ID cards
- Driver’s licences
Using document capture, data extraction, and biometric comparison, we’re enabling institutions to verify identity with over 80% match accuracy — without ever needing to call on DHA in real time.
Managing exceptions with confidence
We know that identity verification isn’t always binary. That’s why we’ve built a robust Exception Management Portal, which gives clients the ability to manually review and validate outlier cases where our automated system doesn’t return a confident match.
This ensures that edge cases don’t become blockers — and that businesses can continue onboarding customers securely, even without direct DHA support.
“Innovation in digital identity must be both scalable and reliable,” adds Craig Hills. “Our approach gives institutions the tools they need to stay compliant without compromising on trust or affordability — even in the absence of DHA access.”
A step toward digital independence
We believe the future of South African digital identity will be hybrid by necessity — blending government infrastructure with private-sector agility and innovation.
As outlined in our previous article, many institutions simply cannot absorb the R10 fee across high-volume, low-margin services. By offering a document-first, biometric-led alternative, we’re enabling businesses to continue delivering fast, compliant, and cost-effective services — even in an uncertain regulatory environment.
We’re not alone in this view. The industry has spoken clearly: financial inclusion, real-time onboarding, and fraud prevention cannot be sacrificed due to misaligned pricing structures. We’re building the tools to help businesses stay ahead — no matter how the landscape shifts.
Conclusion: Building for what comes next
The DHA’s fee hike has undeniably changed the playing field. But it has also pushed us — and the industry — to think bigger.
By building a more independent, resilient identity verification solution rooted in biometric intelligence and smart document verification, we’ve proven that adaptability is the best defence against instability.
“We didn’t just adapt to the price hike,” says Craig Hills. “We used it as an opportunity to reimagine how identity verification could work in a way that’s faster, fairer, and future-ready.”
The next phase of digital identity in South Africa will be defined by collaboration, technology, and a shared commitment to keeping people and businesses secure. We’re proud to be leading the way.
