Revolutionising payments: how biometrics are driving innovation

Episode 1

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Episode 2

 

Today’s payment solutions are focused on reinventing the customer experience and facilitating secure transactions. Consumer needs have evolved to prioritise speed, convenience and security. First introduced 16 years ago, contactless cards demonstrated how demand for speed and convenience could be met: consumers scan their item at the checkout, tap their card on the payment terminal and, within seconds, walk away with their purchase. This consumer-centric design has transformed the customer payment experience.

 

While convenient, contactless payments remain susceptible to unauthorised use, thereby posing risks. As companies strive to create more user-friendly payment systems, there is a demand for enhanced security and additional peace of mind.

 

Biometrics is based on unique human characteristics, such as facial images, fingerprints or voices, and has emerged as a highly effective and widely accepted way to digitally authenticate. Biometric authentication addresses the key requirements of convenience, speed and security. It obviates the need for consumers to memorise passwords or PINs, thereby ensuring high levels of convenience. A swift fingerprint tap is all that is required to prove an individual’s identity. Moreover, the uniqueness of human biometric features renders them resistant to imitation, bolstering the security and integrity of biometric-based authentication.

 

People trust biometric authentication because it’s part of their identity. This trust is important in strengthening consumer’s assurance in payments.

 

Personalising the customer experience

 

Biometrics are widely used for payments, both online and in person, as well as for digital authentication and access control. The technology provides a personalised and streamlined customer experience. Once a customer’s biometric information, such as fingerprints, is registered for making payments, accessing medical records or entering a building, they can bypass lengthy traditional authentication methods such as PINs or one-time passwords with security assurance.

 

As a result, fast, secure, advanced biometric payment solutions have proven effective in attracting and retaining bank customers.

 

An inclusive ecosystem

 

Affluent and tech-savvy users, as well as corporates, are the front-runners in adopting biometric smart cards, as their consumers seek innovation, cutting-edge technology and security, particularly for large transactions.

However, biometric authentication also enables underrepresented groups to participate in the financial ecosystem. Those who struggle to recall or manage a PIN, such as those with Alzheimer’s or dementia, account for more than 55 million people globally. Unsupportive payment environments can magnify a vulnerable person’s lack of accessibility and independence in navigating everyday situations.

 

The blind and visually impaired, accounting for around 2.2 billion people globally, may face sensory barriers in entering PIN codes or navigating touchscreens. In this context, a biometric payment card enables seamless authentication, hence increasing their financial autonomy and independence. For fintechs and banks seeking to differentiate, biometric payment card programs allow more consumers to benefit from an inclusive payments ecosystem and equitable access to financial resources.

 

Extensive consumer research is pointing to the strong demand for biometric payment cards, indicating that more than 80 per cent of consumers across 15 markets find biometric cards convenient and secure. Meanwhile 70 per cent of consumers would be willing to pay for a biometrics card that provides them with a sense of greater safety. With a fingerprint sensor integrated into payment cards protected by encryption technology and shielded by a system that can detect if someone is trying to hack the card, IDEX Biometrics has designed one of the world’s most secure card solutions.

 

Cards are here to stay

Sixteen years on from their introduction, contactless cards are now ubiquitous. This is reflective of a broader trend: globally, there are 26 billion payment cards in circulation; and the card market is growing by more than 5 per cent annually. The data confirms that consumers prefer cards for financial transactions – and they want convenience and security combined, bringing peace of mind for every payment situation. With the continued growth of the card market and the demand for secure and inclusive financial transactions, biometric payment cards represent the future of payments.