In 2027, the value of mobile payments, validated by biometrics, will reach $1.2 trillion worldwide, an increase of 365% from $332 billion for 2022. This is an estimate Published study Posted on May 30 by Juniper Research on the topic, Posted on May 30th.
Biometrics are already everywhere
Biometrics, identification through facial recognition, fingerprints or other unique physical characteristics are becoming widely democratized. Biometric data is increasingly being used for identity papers or even credit cards.
With a comprehensive European directive, France wants to protect consumers online
In 2022, 99.6% of smartphones will be equipped with a facial recognition system and 91.5% with a fingerprint scanner. The good old password with questionable security is doomed to fail.
Juniper Research realizes that in Globally, consumer confidence in biometrics varies “But this omnipresence should drive this indicator higher. Mobile payment will benefit indirectly.
For the company, the next five years will be a transitional period for biometrics as a payment system on smartphones. It has many advantages, the main one being that it is very easy to use while being safe. Overly complex security systems tend to alienate consumers.
Confidence is the key to success
Several factors will drive this transformation. First of all, the arrival of payment services from manufacturers on their devices, for example Apple Pay. The adoption of the second Directive in 2015 on Payment Services in the European Union (PSD2), along with implementation, just over a year before Strong Client Authentication (SCA).
” SCA requirements for PSD2 prompted financial institutions to implement biometric authentication. To meet this requirement, financial institutions have taken advantage of the biometric authentication capabilities of smartphones. Juniper Research Analysis.
Biometric systems, like all security systems, are not tamper-proof or problem-free. Storing everyone’s biometric data raises serious privacy protection issues.
Juniper defends it for ” To maintain trust and reduce fraud, financial institutions are implementing phased authentication. Step-by-step authentication, whereby certain transactions are subject to biometric approval based on risk assessment “.Trust will be the key to fulfilling the company’s expectations.
