Biometric transactions, payment cards to boost bank revenues by $5B by 2026: UBS analyst
Biometric payments could contribute $5 billion to global banking revenues by 2026, according to a recent estimate by a UBS analyst reported by Proactive Investors, buoyed in part by the commercialization of fingerprint-enabled payment cards.
Biometric payment cards could reach 15 percent market penetration by 2026, according to the forecast, as materials costs fall and contactless transactions become more popular.
Goode Intelligence CEO and Chief Analyst Alan Goode told Biometric Update in an email that tallies of bank revenues from biometrics may include subscriber fees or just card issuer processing fees, and that banks may receive more revenues from increased sale volumes and amount averages with contactless payment limits lifted.
Fingerprint Cards stock closed Thursday trading on the Nasdaq Stockholm at SEK 26.55 ($3.19).
CEO Christian Fredrikson said during the company’s recent earnings call that supply chain constraints are currently the limiting factor for its growth, and FPC has been working on new deals with foundries that he says could have a longer-term benefit for the company and its ability to scale.
USB sees biometric cards as a potential growth area for payment cards, even as mobile payments threaten overall card volume, according to Computer Weekly.