Building on the seminal studies of Solomon Asch and Muzafer Sherif, recent research has advanced our understanding of the mechanisms underlying social influence by applying a diffusion model analysis. Here, we combined the social identity approach to social influence with a diffusion model analysis to unravel the mechanisms underlying social influence. In particular, we aimed to disentangle whether the difference between in-group and out-group influence on perceptual decision-making is driven by a judgmental bias (i.e., changes in decision criteria) or a perceptual bias (i.e., changes in the uptake of sensory information). Preregistered analyses indicated that in-groups exerted stronger social influence than out-groups because in-groups induced a stronger perceptual bias than out-groups. This finding is in line with the single process assumption of the social identity approach because it implicates that the single process driving social influence (i.e., self-categorisation) translates into a change in a single subprocess of decision-making (i.e., biased information uptake). In conclusion, our results highlight that our theoretical understanding of social influence can be expanded by integrating the social identity approach with a diffusion model analysis.