Digital trust is the new differentiator: How congstar balances security and seamless onboarding

In a competitive telecom market where customers expect instant onboarding, congstar must balance speed with security and compliance.

We sat down with Christopher Krause, Senior Manager Customer Finance at congstar, to discuss how the company’s partnership with IDnow enables seamless eSIM activations and postpaid sign-ups in seconds through AI-powered identity verification, why digital trust has become as important as price or network speed, and why telcos are uniquely positioned to become anchors of digital identity in the era of EU Digital Wallets and decentralized credentials.

congstar is known for fair, transparent tariffs and a simple, digital customer experience. What role does identity verification play in keeping the onboarding process both secure and smooth? 

We put convenience and security on an equal pedestal. When a customer signs up for a postpaid plan, we offer a range of identification options, especially automated identity verifications so that only real, eligible customers get through – this protects against fraud and satisfies legal requirements in Germany.  

When customers sign up for postpaid plans or activate eSIMs, how do you ensure the process feels instant and seamless, while still meeting all regulatory and fraud-prevention requirements? 

For postpaid or eSIM activation, speed is king, but we never cut corners on compliance. A perfect example is our sub-brand fraenk, our fully digital mobile phone app tariff. Here we rely on fully digital KYC tools, in our case IDnow’s automated identity verification solution, that scans a photo ID and do a quick selfie/liveness check. These AI-powered checks turn around in seconds, replacing old-school video calls or lengthy paperwork. As a result, signing up feels almost instant to the customer – yet it still meets all legal requirements.  

Another good example is our congstar website, where we have incorporated the verification step into the checkout process. By doing the identity check with a fast, in-browser process (no extra app needed) and clearly explaining each step, customers hardly feel any friction.  

In short, we assure our customers are safe, while keeping the process simple and transparent – a key part of our “fair and worry-free” brand promise. 

You’ve been working with IDnow for identity verification. How does this collaboration support congstar’s goals for digital efficiency, compliance and customer satisfaction? 

Our partnership with IDnow is a cornerstone of this approach. IDnow’s automated identity verification solution is AI-powered and designed exactly for telco onboarding. It lets us verify identities fully automatically using just a smartphone. The benefit is twofold: it accelerates the process for users, and it guarantees compliance with strict regulations. 

Thanks to that, we can scale up our digital sales without bottlenecks – maintaining our light, digital touch while staying on the right side of the law. In practice, this means high customer satisfaction because sign-ups are almost instant, and our operations save time – all contributing to our goal of a smooth, yet secure and digital experience. 

With growing eSIM adoption and automated onboarding, where do you see the biggest opportunities or challenges for congstar in the next few years? 

Looking ahead, the rise of eSIMs and automated onboarding is a big opportunity for us. Analysts expect eSIMs to boom soon. For us, this means we can offer even more flexible, instant activations. It also cuts costs – no more plastic SIM cards or waiting for mail delivery. The flip side: as onboarding goes 100% digital, we need to stay vigilant against evolving fraud, like SIM swap attacks or deepfakes. We’re preparing by continuously improving our automated checks and monitoring tools. Overall, the shift is positive – it lets us focus on the best customer experience and leaves us more bandwidth to innovate on products and services. The main challenge is simply staying one step ahead of bad actors as we grow digitally. 

Do you see digital trust as a new differentiator in the telecom market, similar to how speed or price once defined competition? 

Absolutely – we see digital trust becoming a real differentiator. In a mature market like ours, price and speed are table stakes. What sets a brand apart now is how much customers trust it with their heart, their data and security. Trust wins loyalty: research shows that trusted telcos gain more market share, foster long-term customers and are recommended more than others. Our brand is built on transparency and fairness, so emphasizing trust feels natural for us.  

When a customer goes through an identity check, what do you want them to feel –safety, simplicity, control?  

In the identity check itself, we want customers to feel a sense of calm and confidence. They should feel that the process is simple as we guide them clearly through each step and respectful as they decide what information to share. Altogether, we want people to walk away thinking: “That was easy, and I know my account is protected.” 

How does your verification journey contribute to that emotional experience? 

Our verification flow is designed to build those positive feelings. For example, we use the in-app browser for IDnow’s automated identity verification solution in our fraenk app, which keeps the process friendly and fast. The user sees clear instructions and immediate feedback, so they never feel lost. Every step is optimized for transparency: we show progress bars, explain why we need each check, and never ask for data twice. The result is a consistent, reassuring experience that strengthens the feeling of security and control. 

How do you prepare for upcoming regulations like eIDAS 2.0 and the EUDI Wallet, and what opportunities do these create for telcos?  

We’re monitoring the developments around eIDAS 2.0 and the EU Digital Wallet and we are seeing them as enablers rather than headaches. As the regulations come into force, we review them with our identification partners and examine how we can further improve identification with the new options available. For telcos, the opportunity could be big: according to experts, eIDAS-compliant credentials mean we can verify any EU customer’s identity seamlessly and with reduced risk of fraud.  

In a world of digital wallets and decentralised identity, how do you see the telco’s role in verifying and protecting digital identity?  

Telcos have a vital role to play. We already have something others don’t have: a verified link between a real person and a SIM card. That makes us natural authorities for certain credentials – for instance, confirming that a person is a current mobile subscriber, or verifying age to enable services. Industry analysts note that telcos are well-positioned as “mobile-SIM-anchored” issuers of digital credentials.  

How important is orchestration, i.e connecting verification, fraud and user experience, to achieving a scalable, future-proof onboarding process?  

Orchestration is absolutely critical for scaling securely. We can’t treat identity checks, fraud detection and user experience as separate silos. Instead, we tie them together. For example, if our system flags an order as high-risk, it immediately triggers additional steps. Conversely, if everything looks legitimate, the user sails through. This end-to-end coordination (identification, device risk profiling and behavior analytics) is what lets us grow quickly without ballooning costs.  

How do data-sharing initiatives or consortium-based approaches help strengthen fraud prevention across the telecom sector?  

Industry-wide collaboration is a force-multiplier against fraud because fraudsters don’t respect company boundaries. For instance, telecoms worldwide have started exchanging through platforms like the Deutsche Fraud Forum. In addition, regular and transparent communication with government authorities such as the BNetzA and LKA is essential to set uniform industry standards and combat potential fraud equally. 

How do you see AI helping to detect fraud in real time without adding friction for genuine users?  

Finally, AI is becoming essential to catch clever fraud without inconveniencing users. We use AI and machine learning models that watch behind the scenes. The smart part is that genuine customers hardly notice: the system learns normal behavior and only steps in (with an extra check or block) when something truly stands out. This adaptive learning means false alarms drop over time, reducing friction for legitimate users. We also benefit by deploying solutions like IDnow’s automated identity verification solution, which already uses AI trained on millions of data points to verify identities. In network operations, we complement that with risk scores on each transaction. The net effect is real-time fraud defense that locks out attackers but lets loyal customers pass through hassle-free.  

About congstar: 

Founded in 2007 as a subsidiary of Telekom Deutschland GmbH, congstar offers flexible, transparent, and fair mobile and DSL products tailored for digital-savvy customers. Known for its customer-first approach and innovative app-based brand fraenk, congstar continues to redefine simplicity and security in Germany’s telecom market. 

Interested in more from our customer interviews? Check out:

• Docusign’s Managing Director DACH, Kai Stuebane, sat down with us to discuss how secure digital identity verification is transforming digital signing amid Germany’s evolving regulatory landscape.
• DGGS’s CEO, Florian Werner, talked to us about how strict regulatory requirements are shaping online gaming in Germany and what it’s like to be the first brand to receive a national slot licence.

By

Nikita Rybová
Customer and Product Marketing Manager at IDnow
Connect with Nikita on LinkedIn