Biometrics research briefs: biometrics and banking, mobile point-of-sales, face and voice biometrics
Biometrics and banking
Goode Intelligence forecasts that by 2023 the adoption of biometrics in the financial industry will contribute US$4.8 billion in revenue for firms involved in delivering those biometric systems to the banking sector.
The firm predicts that by the end of 2020, some 1.9 billion bank customers will be using biometrics to withdraw cash from ATMs; to prove their identity when contacting their bank via telephone (both actively and passively); to prove identity for digital onboarding using their face; to access digital bank services through an increasing number of connected IoT devices including smart home devices and via connected car and smart city services; to authenticate into a mobile bank app using their biometric, either using an embedded sensor or through an app or SDK, along with using a combination of biometric modalities (face and voice for instance), and to initiate money transfers when accessing Web-based electronic banking services.
A new study from Juniper Research has found that the adoption of mobile point-of-sale devices connecting wirelessly or via mobile devices, such as those from iZettle and Square, will drive annual mobile POS transactions to over 87 billion by 2023. This will represent a threefold increase over an estimated 28 billion transactions in 2018.
The research also forecasts that biometrics will become an increasingly common part of mobile point-of-sale offerings. It cited national identity schemes using biometrics, such as Aadhaar in India as a mechanism for card-free authentication, giving merchants the opportunity to avoid card network charges. This will drive biometric-enabled mobile point-of-sale devices to reach almost two million globally by 2023, just under four percent of total mobile POS terminals in use by that time.
The study further found that the average price of a mobile POS device will drop from US$40 in 2018 to approximately US$33 by 2023. This affordability, coupled with the simplicity of mobile POS devices, will make them highly attractive to smaller, previously cash-driven businesses.
Mobile point-of-sale devices will drive increased usage of payment cards in emerging markets, such as India. The digitization of payments, spurred on by the policy of demonetization, means that growth in the number of mobile point-of-sale devices in India will be the fastest of any global region, at an average annual growth rate of 46 percent over the next five years.
Face and voice biometrics
Persistence Market Research notes that by the end of 2016, the global face and voice biometrics market was worth US$4.5 billion and is projected to reach a value of US$24 billion by the end of 2025, representing a 18.1 percent compound annual growth rate.
The firm notes that the key drivers for growth in adoption of face and voice biometrics include: the implementation of biometrics in banking and payments, the integration of voice biometrics with customer service management applications and the implementation of biometrics by governments.
According to the research firm, North America’s face and voice biometric market is expected to experience the most growth over the forecast period. Along with the Asia-Pacific region, North America’s face and voice biometric revenues are expected to account for over 66 percent of the global market revenues by the end of 2017. Europe, according to the forecast, will experience moderate growth in its face and voice biometric market, which will be primarily backed by steady demand for face and voice biometrics in government offices, law enforcement facilities, and in the military and defense sector.