Biometrics to secure over $5.6T of payments by 2020: Goode Intelligence
Goode Intelligence has released a new analyst report titled “Biometrics for Payments – Payments Security Gets Personal; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020”, which forecasts that by 2020 over $5.6 trillion of payments will be secured by biometric technology.
The report also predicts that by 2020 over 226 billion biometrics secured payment transactions will be made.
According to the report, payments have been the leading driver in wide-scale adoption of biometrics in the consumer market, with more than 50 million customers making biometrics secured payment transactions during 2015.
Mobile payments, specifically, have been a major driver with the need for ‘authentication speed’ creating demand for a seamless user experience that biometrics can meet.
“Biometric vendors are experiencing tremendous growth on the back of the escalation of consumer-led adoption of biometric security,” said Alan Goode, author of the report and founder of Goode Intelligence. “The adoption for payment purposes is a major contributor to this growth and Goode Intelligence forecasts that by 2020 it will contribute US$5.6 billion in revenue from $5.6 trillion worth of payments for companies involved in delivering biometric systems to the payments industry.”
The report highlights the key trends that are influencing the industry and analyzes how biometrics is impacting the payments industry.
Additionally, it covers a range of payment types and technologies, including physical retail store/point-of-sale (POS) terminal integration, eCommerce (web-based payments), mobile payments, wearable payments, bitcoin, and ATM (cash and bitcoin).
“This is not just about one biometric technology dominating on one device,” said Goode. “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.
“Biometrics are being adopted in both ‘static’ and ‘active’ use cases, combining to allow payment service providers (PSP) the ability to gain greater insight into customer identity, thus preventing fraudulent payment activity. Additionally, tighter integration between ‘in-device’ and ‘in-network’ biometrics is allowing PSPs to accurately determine the difference between authorized and fraudulent payment transactions.”
The report identifies eight biometric technologies that are impacting the payment security market, including behavioral, eye (iris and eye-vein), face, fingerprint, finger-vein, heartrate, palm-vein, and voice.
Goode analyzes all eight of these biometric technologies, as well as reviews the key vendors offering these biometric solutions.