Biometric payment cards can help banks build customer base post-COVID, says FPC
In a recent episode of On the Pulse, Fingerprint Cards (FPC) executives outlined how banks can better target consumer bases when rolling out biometric bank cards, and barriers facing the future of the technology. As biometrics gain more momentum across industries, Michel Roig (SVP Head of Business Line Payment and Access) and Lina Andolf-Orup (Head of Marketing and Communications) say that biometric payment cards will bring a multitude of benefits to consumers.
Fingerprint Cards has identified different consumer segments for banks, all of whom want the technology but for different reasons. Millennials seek less hassle and instant gratification; Middle-aged people want the product because of the trusted technology; and older generations want the cards for ease of use.
Now is the right time to start implementing this product, says Roig, because a move to biometric cards shows care for consumers. Consumers are willing to switch banks (60 percent of active and higher income groups would do so), according to an FPC survey, and a recent survey by TietoEVRY and Zwipe supports this result (79 percent of UK participants said they would like their next card to include biometrics). Therefore, there is an opportunity for banks to both retain existing customer bases and acquire new ones, given the willingness to switch.
Customers are further willing to pay for the technology so there could be a revenue stream created by offering a service fee, says Roig. On top of that, in Europe there are regulations and customer authentication, taking away the need for pin code requests, because the transaction is always being authenticated. This type of technology goes hand in hand with mobile payments, which are increasingly popular and can be offered to the mass market.
The company says there should be no barriers, the product has been certified by Mastercard and Visa, and is compliant with regulations. The next steps for banks are showing a desire to be innovative on behalf of the consumer base.
Biometric transactions could already contribute $5 billion to global banking revenues by 2026, according to a recent estimate by a UBS analyst.