Today, contactless payments surely grab more headlines, but biometric payments will heavily dominate the near future, new research suggests.
With biometric payments gaining popularity for averting cyberfraud and sheathing payments processes with an added layer of security, the average shipment of biometric devices is expected to rise from 4.7 million units in 2015 to a whopping 43.7 million annually by 2024, at a compound annual growth rate of 38 percent, according to the “Biometrics for Finance Applications” report by Tractica.
“Many industries are getting close to adopting biometrics, but finance is there now,” said Principal Analyst Bob Lockhart.
“Cash machines with fingerprint readers, vein imaging and iris imaging are increasingly deployed, especially where fraud is high and law enforcement is low. Innovative point-of-sale authorization requires a fingerprint, facial recognition and even an electrocardiogram. And mobile banking can be authorized through many types of biometrics, only readable from the customer’s own device,” he added.
The report, which analyzed six use cases, estimates biometric shipments to surpass 212 million devices and found that the mobile banking use case was the leading revenue generator, especially in the Asia-Pacific region, where it accounts for about 40 percent of the total.
The “Global Biometrics and Mobility Report” by Acuity corroborates these growth estimates. By 2020, the research noted, 65 percent of all mobile commerce transactions could be biometrically authenticated and may equate to as much as 126 billion payment transactions, which translates to $1.1 trillion worth of purchases.
The report further estimates the total biometric transaction volume to exceed 800 million annually in the next five years. Of which, 35 percent are expected to be secured by a biometric form of authentication that would be embedded in mobile devices and the remaining 65 percent in apps.