Mobile biometric payments to total more than $1.67 trillion a year by 2023: Goode Intelligence
Mobile biometric payments will total more than $1.67 trillion annually by 2023, generating more than $8.7 billion in revenue for mobile biometric technology suppliers, according to the latest forecasts from Goode Intelligence.
The “Mobile Biometrics for Financial Services; Market and Technology Analysis, Adoption Strategies and Forecasts 2018-2023 – Second Edition” report says that digital payments through mCommerce and eCommerce payment transactions, with the latter supported by FIDO2 (WebAuthn) standards, will provide the bulk of initial market growth.
The report shows that 68 percent of mobile biometric payments were made remotely, compared to 32 percent in-person, and predicts that local or in-store payments share will rise to 46 percent of all mobile biometric payments by 2023. China, India, and the rest of the APAC region are expected to have higher rates of adoption than North America, Europe, Africa, the Middle East, and Latin America.
Goode Intelligence Founder and CEO Alan says the interconnected areas of identity verification, authentication, and fraud management are establishing the importance of mobile biometrics for financial industry companies.
“The delivery of financial services is being transformed by a series of digital mega-events that include the Open Banking revolution where these banks and payment services providers are being forced, either by regulation such as the EU’s PSD2 or by pressures from FinTech providers, to open up their digital infrastructure to third parties using APIs. This, coupled with the need for speed and friction removal from a range of financial services, has created the demand for alternative identity solutions that can operate in a range of channels from traditional, for example ATMs, to the latest digital financial services including mobile, web and IoT,” says Goode.
“Tied to Open Banking is the need for seamless methods that financial services providers can use to engage with their customers and to prove who they are (identity) so that these customers have a convenient method to gain access to their authorised banking services (authenticate) to enable them to make payments any time, any place, anywhere (the Martini principle).”
Goode also says that fingerprint will continue as the dominant modality due to the proliferation of fingerprint sensors in mobile devices, but that face biometrics with 3D sensors and with software solutions leveraging cloud-based AI will also grow rapidly for digital onboarding.
The 206-page report is one in a series of three.