The Value of Contactless Biometric Payments
For any financial institution or payment card provider, there is one critical consideration when it comes to the question of biometric technology: cost. After all, the biometric authentication approach offers a variety of significant advantages for both the user and the card issuer, so any hesitation to implement this approach is likely to stem from concerns about the cost of adding a fingerprint sensor to a contactless payment card. Yet, it is clearly proven that cards that feature contactless biometrics deliver significant value.
A Smart Investment
The highly sophisticated biometric technology involved in producing a fingerprint smart card makes it more costly than a non-biometric card. As biometric smart card adoption grows and market penetration increases, the cost of producing cards with built-in fingerprint sensors will fall commensurately. Furthermore, these cards are designed to have a longer working life than their predecessors, allowing the card issuer to absorb the initial cost over a longer period (typically 3 to 4 years).
Perhaps the best example of the value of these smart biometric authentication cards is the response from customers. Statistics show that 70% of consumers would pay a fee for a card that came with greater security protocols , which is a major benefit of biometrically authenticated payment cards. Furthermore, these new cards are attractive to users that enjoy being early adopters to the latest technology and are shown to have a top-of-wallet effect. All of this means that choosing to switch to a payment card with contactless biometrics will deliver excellent return on investment, in addition to attracting new customers.
Contactless Biometrics Build Confidence
Consumer feedback clearly illustrates that security has become a major concern in recent years. By offering a payment card that is providing convenience and security, leveraging biometric authentication technology, financial institutions reduce customer fears about the security of their transactions and their personal data. After all, data breaches are a notable threat to modern organizations, thanks to the widespread use of centralized online databases. Figures show that 83% of organizations have fallen victim to a data breach on more than one occasion (1). In contrast, biometric payment cards store the user’s biometric data securely on the card itself, pre-empting the risk of being accessed by hackers.
Fraud is another major concern, with the payments industry having lost more than $32 billion as a result and this figure is predicted to rise to $397 billion by 2032 . Biometric payment cards counter this type of crime by having built-in anti-spoofing technology, ensuring that only the registered user may carry out transactions.
A Valuable Choice
The value of the biometric smart card makes it the best choice for forward-thinking financial institutions and their customers, brining better and safer customer experiences. The opportunity cost of failing to implement the technology is potentially significant.