In 2027, the value of mobile payments, validated by biometrics, will reach $1.2 trillion worldwide, 365% more than the $332 billion of 2022. That is the estimate of a published study on May 30 by Juniper Research on the subject, published on May 30.
Biometrics is already everywhere
Biometrics, identification through facial recognition, fingerprints or other unique physical characteristics is becoming widely democratized. Biometric data are increasingly used for identity papers or even credit cards.
With the European Omnibus 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.
Juniper Research recognizes that at globally, consumer confidence in biometrics is mixed “, but this omnipresence should see this indicator go up. Mobile payment will benefit indirectly.
For the firm, the next five years will be a period of transition for biometrics as a payment system on smartphones. It has many advantages, the main one is to be very easy to use while being secure. Overly complex security systems tend to drive consumers away.
Confidence is the key to success
Several factors will drive this transition. First of all, the arrival of payment services from manufacturers on their devices, for example Apple Pay. The adoption in 2015 of the second directive on payment services of the European Union (PSD2), mixed with the implementation, just over a year ago of “Strong Customer Authentication” (SCA).
” The SCA requirement of PSD2 has pushed financial institutions to implement biometric authentication. To meet this requirement, financial institutions have capitalized on the biometric authentication capabilities of smartphones. Juniper Research analysis.
Biometric systems, like all security, are not tamper-proof or problem-free. The storage of biometric data specific to each individual raises serious issues of privacy protection.
Juniper advocates that for ” maintaining trust and reducing fraud, financial institutions are implementing progressive authentication. Step-by-step authentication, where certain transactions are subject to biometric approval based on a risk assessment “. Trust will be the key to achieving the firm’s predictions.