February 10, 2016 -
A new report by Juniper Research titled “Top 10 disruptive technologies in fintech: 2016” discusses technologies that will do the most to transform e-commerce this year and topping the list are biometrics, federated identity and tokenisation.
The research firm highlights the use of biometric authentication in both Apple Pay and Samsung Pay and the proliferation of fingerprint readers in smartphones as making the biggest difference to ‘payment completion’ today. Juniper argues that use cases and deployments will proliferate in the short and medium term.
Next to biometrics is federated ID, which provides merchants with the ability to gather information on customers at once, rather than asking them to fill out long forms. Juniper noted that Facebook, Google and LinkedIn currently dominate this area but expects banks, telcos and even governments to increase their presence within the space.
Juniper ranks tokenisation as the next most impactful technology, addressing the e-commerce security barrier. Tokenisation makes the theft of card data pointless by replacing card numbers with randomly generated digits and prevents merchants from having to store sensitive credentials.
Juniper anticipates that the benefits offered by tokenisation, and its support by Visa and MasterCard, will lead to far greater commercial deployment and adoption in the near future.
Report author Tim Green commented, “Digital commerce is already worth around $1.7 trillion a year, but it still has so far to go. Even after 20 years, it can be hard for consumers to buy the things they want to buy without fuss. Happily, exciting new ideas are on the way.”
The report cautions that disruptive technologies will invariably develop at different speeds as new device types and government regulation accelerate the adoption of some and delay others.
For a quick synopsis, download Juniper’s whitepaper “Top 3 disruptive fintech to watch in 2016” from its website along with more details on the full research report.