Goode Intelligence issued a new report forecasting that by 2020 more than $5.6 trillion of biometric payments will be performed. The consultancy also predicts that by 2020 over 226 billion biometrically secured payment transactions will be made.
In its latest Analyst Report, “Biometrics for Payments – Payments Security Gets Personal; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020,” Goode reports that payments are the main driving force for the wide-scale adoption of biometrics in the consumer market.
Even now millions of customers — 350 million plus in 2015 — are using biometrics on a daily basis around the world to provide user authentication and transaction authorization.
Mobile payments are a major driver with the need for authentication speed creating demand for a frictionless user experience that biometrics can meet.
“We are seeing increased activity across a wide range of payment types with distinct regional variations,” says Alan Goode, author of the report and founder of Goode Intelligence. “Outside of the North America, Europe and Asia Pacific regions, where mobile biometric payments will dominate, we are seeing biometric technology in a variety of payment scenarios including its use directly at physical point-of-sale terminals and by using biometric cards.”
Visa’s recent announcement on biometric standards for EMV cards is a sign of this and an indication that PINs and passwords are coming to the end of their shelf life in protecting payments against rising levels of fraud, Goode adds.
The report identifies the major trends shaping this industry and includes analysis of how biometrics is reshaping the payments industry. It also looks at the different biometric modalities that will be used.
“This is not just about one biometric technology dominating on one device,” Good explains. “Our analysis of the current and future adoption of biometrics for payments informs us that at least eight separate biometric technologies will be used in different payment scenarios.”