Biometric mobile payments to reach $3T by 2025 on 650 percent growth, Juniper forecasts
App-based purchases and mobile commerce and contactless mobile device-based payments will drive more than $3 trillion in mobile payments that will be secured with biometrics by 2025, according to a new report from Juniper Research.
In a whitepaper called ‘How to Maximize Mobile Payment Security,’ Juniper writes that growth of more than 650 percent in the value of transactions secured with biometrics, from $404 billion in 2020, will largely go through OEM payment solutions, like Apple Pay and Samsung Pay. These payment systems have already implemented biometrics, and will be used for payments both in store and remotely.
To prevent losing market share to OEM payment systems, Juniper advises payment apps to build seamless biometric user experiences.
“While biometrics are now an established part of the ecosystem, payments and eCommerce apps have not kept pace with the rate of innovation,” report Co-author Susan Morrow explains. “Merchants must adopt biometric capabilities rapidly and educate users to best secure the increasingly massive eCommerce market.”
Contactless mobile transactions are also expected to increase by 520 percent over the forecast period. Contactless cards, a market where biometrics are also expected to play an increased role, is the main threat to those mobile transactions, according to the research.
The stats are drawn from the report ‘Mobile Payment Security: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2025,’ which also found that 95 percent of smartphones will have biometric capabilities by 2025, only 35 percent of them will be used for biometric eCommerce payments, with many consumers still opting for card-on-file payments without biometric authentication.