Technavio forecasts global biometric PoS terminals to grow 28% CAGR through 2021
Technavio has published a new research market report that forecasts that the global biometric PoS terminals market will grow at a CAGR of nearly 28 percent from 2017 to 2021.
The report lists facial recognition, fingerprint identification, iris recognition, palm vein identification, retina recognition, and voice recognition as the six major segments based on technology.
According to Technavio, fingerprint identification dominated the market in 2016 with a revenue share of 85 percent.
“The biometric POS terminals market will grow at a significant pace since the need for secure payment methods has become a necessity with the growing number of fraudulent transactions,” Raghu Raj Singh, a lead analyst at Technavio for computing devices research, said. “Biometric POS terminals provide an extra layer of security since biometrics is extremely difficult to duplicate.”
Technavio analysts states that the rise in fraud at merchant POS terminals, the increasing adoption of EMV standards, and an increase in digitalization are three market drivers that are contributing to the growth of the global biometric PoS terminals market.
The EMV standard was developed to ensure a safe and secure payment transaction between chip-based payment cards and POS terminals.
The majority of debit and credit cards store data using magnetic tapes, which can easily be tampered with and lead to insecure monetary transactions and monetary loss for users.
As a result, many financial institutions such as Barclays are issuing EMV cards, which generates a dynamic code for every transaction to make it nearly impossible for hackers to decode and retrieve customer data.
This rise in EMV cards will lead to the eventual growth of EMV POS terminals to support these cards.
Digitalization is also another key driver impacting the growth of the market — a trend that is being seen in the Indian economy as well as developing nations such as China, Russia, and Denmark.
Technavio analysts report that payment technologies have also gone digital, which makes them safe, secure and prone to cyber-attacks.
“The use of biometric POS can help in adding an extra layer of security to financial transactions and, therefore, make payments more secure,” Raghu said. “There is also no need of an OTP or debit or credit card for transactions since the authentication is the person’s biometrics.”
Technavio published a research report in April that forecasted that the global ePassport market is expected to grow at a CAGR of more than 26 percent during the forecast period.