How Behavioural Trends Continue To Drive the Biometrics Market
The biometric smart card market is growing at an impressive rate. With recent figures putting the total global value at a staggering $74.4 million at the end of 2021 [1], current consumer trends suggest that this figure will continue to increase for the foreseeable future. Key areas of growth are set to include the Asia Pacific region, while North America currently holds the lion’s share of biometric card adoption [2]. In delivering biometric smart cards, the most practical technology is found in fingerprint sensor solutions.
Ensuring Data Privacy
Today’s consumers are highly aware of their personal data’s intrinsic value. Therefore, they are more cautious about exposing themselves to any risk of fraud or theft. The latest contactless smart payment cards can alleviate such concerns. From anti-spoofing technology (meaning only a real and live user’s fingertip can be used to authenticate identity), to the fact that all biometric data is stored securely on the card (rather than on a server where it’s vulnerable to hacking), fingerprint sensors are the ideal way to encourage confidence among customers.
For financial institutions, creating and regaining customer confidence is integral sustaining success, as fraud remains a significant threat to their business. In 2021 alone, more than £574 million was lost due to the fraudulent use of UK payment cards [3]. differentiating against peer-groups and stimulating customer interest.
Behavioral Changes and Fingerprint Sensor Solutions
With an increased awareness of data security needs, consumer behavior has changed. By using fingerprint sensor technology in their payment cards, financial institutions can stay abreast of the latest trends.
In using fingerprint over facial recognition, such cards are free from the threat of deepfake hacks, and several businesses are leading the way in delivering the secure yet convenient payment services that customers now demand. Apple Wallet (popular in the US and Europe) and AliPay (based in China) are both prime examples of companies that are tailoring their services to meet their customers’ expectations.
As a new generation of younger consumers emerges, the expectations for both a secure and convenient payment process are high. Yet biometric payment cards can also provide a vital service to other demographics, including the underbanked populations. By offering a simple yet effective means of authenticating identity, people without formal identification or access to it can be included in a financial ecosystem, which is imperative for our increasingly digitized world.
A Future Proof Solution
Consumers are already familiar with biometric technology, particularly with fingerprint recognition sensors, thanks to their inclusion in many smartphones and other devices. By highlighting the many additional benefits that such payment cards offer, including speed, ease of use, and no contactless transaction limits or PIN codes, biometric payment cards represent the future for the payments card industry at large.
Resources:
[1] https://straitsresearch.com/report/biometric-payment-cards-market
[2] https://straitsresearch.com/report/biometric-payment-cards-market
[3] https://mint.intuit.com/blog/planning/credit-card-fraud-statistics/
