Biometrics unlock smart, secure payment options

Payments analysts have reported widescale adoption of biometric technologies and expect the trend to continue. Analysis by Acuity Market Intelligence predicts mobile biometrics will process more than 1 trillion transactions per year by 2022, driven by a global deployment of 5.5 billion biometric devices. The recently released Global Biometrics and Mobility Report: The Convergence of Commerce and Privacy additionally noted consumer privacy protections, such as the European Union's General Data Protection Regulation, are expected to influence the design and development of POS devices.

C. Maxine Most, Acuity's principal, lead analyst and author of the report, said biometric technologies comprise a popular, convenient way to unlock smartphones and verify on-device transactions. The report projected $18 billion in annual biometric transaction revenue by 2022, compared with $474 million in 2017, an increase of more than 100 percent. Research also indicated biometric app revenue will grow 26 percent during the same period, from $9.4 billion to $29 billion.

"As with all market forecasts, it is the scale rather than the specific figures that are of value," Most wrote. "And the scale of the figures presented in this report is indicative of continued growth in a biometrics market that has been poised for mainstream adoption for years."

Most expects integrated biometric authentication methods to eventually replace "traditional digital identity schemes and provide more secure and reliable identity assurance on a global scale." Acuity identified three major areas of mobile biometrics: embedded readers in connected devices, mobile biometric apps from biometric vendors and mobile service providers, and cloud-based biometric services linked to apps on smart devices.

Biometric methods, options expand

Additional analysis by Juniper Research, published in May 2018, suggests biometrics could kill cash by the year 2030. The Juniper report found Apple Pay and Samsung Pay are driving mainstream biometric adoption by providing built-in fingerprint sensors on phones and tablets. This includes 60 percent of smartphones shipped in 2017. Mastercard reported that cardholders will be able to validate their identities with fingerprints or by taking selfies when the card brand launches Mastercard's Identity Check Mobile later in 2018.

Fujitsu America Inc. predicted that eye scans and fingerprints will eventually replace car keys, as the auto industry continues its digital transformation, which is largely driven by ride-sharing services and self-attended vehicles. Fujitsu researchers suggested manufacturers and IT vendors can jointly address consumer demands while maintaining the highest standards of security.

Jason Bradlee, head of security at Fujitsu America Inc., said "With connected components and motorists' profile information available through cloud-based models, it will become vitally important that car companies detect security threats, and fraudulent identity attempts."

In addition, SmartMetric disclosed on July 13 that it will manufacture and distribute a biometric credit card designed to fight online fraud. The solution will store a cardholder's fingerprint vector inside chip-based debit and credit cards to securely authenticate ecommerce shoppers. Without sharing further details, Chaya Hendrick, president and CEO at SmartMetric, described the product as a simple, effective solution that doesn't require changes to existing processing methods or payments infrastructure. "Touch your card, and your fingerprint biometrics instantly unlock the card in less than a second," she added.

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