Biometric payment technology is designed for inclusivity
By Vince Graziani, CEO, IDEX Biometrics
Today, 89% of payments in the UK are contactless, moving us even closer to a cashless society. The transition away from cash payments is motivated by the advantages that non-cash alternatives offer. But, as digital payment solutions continue to advance, it’s critical that they remain inclusive for all members of society including the more vulnerable, the underserved, and the underbanked.
Many of today’s current payment solutions are leaving entire cross sections of society behind, but biometric payment cards are designed for ease, convenience, and security for all.
Traditional cards and contactless payment methods are dependent upon a physical asset such as a payment card itself, a mobile device, or a smartwatch whereby, in the case of a traditional card, the asset is linked to an owner by way of name and signature or PIN. For some segments of the population, the requirement for a signature or PIN may present challenges—for example, if someone struggles with memory loss then a PIN code requirement becomes problematic; or if someone has limitations with dexterity, as in the case of advanced hand arthritis, then a signature requirement is difficult.
Furthermore, in both the case of a traditional card and a contactless payment, the mechanisms at the instant of a payment transaction have little or no way to validate that the physical card or digital wallet is, in fact, in the hands of the rightful owner—regardless of population segment.
Biometric payment cards solve for both ease of use and security, thus making it both a convenient and more secure way to pay. Instead of requiring a signature or PIN, biometric payment cards are designed to use an individual’s unique fingerprint to trigger a payment which not only adds an extra layer of security against fraud potential, but it also bypasses the need to remember a PIN and it becomes an accessible validation method for all.
With biometric payment cards, payments aren’t sparked by the (financial) product, but by the person—making personal identity the new PIN code.
Pushing on with progress
Change can be scary or uncomfortable, but even the most reluctant or concerned individuals are likely to have succumbed to contactless payments and some form of digitised banking in recent times. Positively, this will make the needed transition to biometrics more seamless. It’s not unusual to use fingerprints or facial recognition to unlock phones or access apps. If anything, they have been convenient and comforting additions to the innovation deluge. There is a relief in knowing that these portals are being secured by methods that are almost impossible to replicate.
With a biometric card, a consumer only needs to touch their finger to the sensor on their card itself and hold it to the reader to authenticate a payment. Even if the card fell into the wrong hands, the resultant transaction would be impossible to see through without the real owner’s ‘personal touch’.
It is a breakthrough that financial players and governments in the world’s most developed countries still need to catch up with, as emerging economies have already capitalised on biometrics’ capabilities for almost a decade now. In India, for example, internal fraud and leakage from pension payments dropped by 47 percent when they transitioned from cash to biometric smart cards. Because the solution also bypasses the need for prior credit ratings or credentials, the country has also been able to catalyse safe online banking among previously unbanked adults since its introduction of biometrics in 2014.
Many around the world have been marginalised by both the pace of change in banking and the solutions that have hitherto been created to accommodate such change. With the mass adoption of biometric smart cards, the same benefits seen in India could be realised on a global scale.
It is time to push beyond the current summit and explore an alternative way forward that fully reflects what a digitally-focused, inclusive society should represent. This doesn’t just mean ease and convenience, but also security for all and – most importantly – inclusion of those who have been left out of digital evolution, until now.
