Majority of consumers would switch banks for a biometric payment card, Fingerprint Cards survey finds
More than half of consumers in countries with developed economies would be prepared to switch banks for a biometric payment card, according to new survey results released by Fingerprint Cards. The survey, unsurprisingly, finds strong support among consumers for payment cards secured with biometrics.
The company surveyed consumers in Australia, Germany, France, Canada and the UK in September and October.
One in three consumers now fear touching PIN pads in retail stores, according to the survey, yet 73 percent say payment cards are not the main way they make in-store payments. Mobile wallet use remains low, at only 2 percent. A large majority of consumers (63 percent) expect to increase their use of contactless cards in the future.
FPC found roughly half of consumers are currently using a contactless card as their main method of payment, and more than three in four say they use their contactless card at least weekly.
Ease of use, universal acceptance by merchants and security are the identified as the top three reasons consumers choose to use payment cards, according to the survey. The top concerns among consumers are that the card could be lost or stolen and used (51 percent), confusion over maximum payment amounts and when PIN entry is required, and low payment caps, all of which are addressed by payment cards with fingerprint biometrics.
“From our research, it is clear demand for biometric cards has only increased with the pandemic,” comments Fingerprint Cards Head of Marketing Lina Andolf-Orup. “Behaviors have shifted quickly and adoption of contactless cards has boomed, penetrating new markets and segments while also shining a spotlight on the current issues and constraints of contactless that have now become real consumer pain-points. Banks have an opportunity to bring innovation to consumers’ favorite payment form factor. By offering biometric payment cards, banks can not only show they care for their existing customers, they can also attract new customers and create a potential new revenue stream.”
Respondents between 18 and 35 years old are the most willing to switch banks for a biometric card (66 percent), and higher income respondents are also willing to switch at higher rates (61 percent).
FPC also found that 43 percent would be willing to pay extra for a fingerprint-enabled bank card. The company says there was some divergence among demographics on this question, though younger consumers are more likely to be willing to pay. Those using contactless cards regularly are more likely to want biometrics (62 percent), and 49 percent would pay for the technology.
Compared to a consumer survey Fingerprint Cards conducted in 2019 in France and the UK, preference for biometric payment cards has increased to about 50%.
“Biometric payment cards are the future”
Idex Biometrics, meanwhile, has added another global payment network to its stable of strategic partners, with this latest one, the third payment network Idex has partnered with, based in the U.S. Idex will work with the partner to engage with card issuers.
“We are very pleased that yet another key member of the payment card ecosystem, this time a global payment network and card issuer, has made a strong commitment to our vision and mission,” comments Idex Biometrics CEO Vince Graziani. “This is another example of our fingerprint sensors and biometric solutions being the preferred option for companies that recognize biometric payment cards are the future.”