Zwipe signs LATAM biometric payment cards partner, North American demand high
Zwipe has signed a deal with Chile-based fintech IC Payment to bring biometric payment cards to the Latin American and Caribbean regions, just as regional surveys were presented by Idex Biometrics, Thales reviewed how BNP Paribas reached the commercial rollout of the technology, and a Diebold Nixdorf executive has expressed doubts that they will ever reach the mainstream.
IC Payment will offer Zwipe Pay ONE biometric technology as part of its comprehensive portfolio of payment solutions for in-person and digital environments, including its ‘Instant CardPoint’ card-issuance solution, according to the announcement.
“Biometric payment cards are attracting increased interest from issuers as they deliver a much better user experience through transaction security and safety,” says IC Payment CEO Christian Herrera. “We are delighted that our partnership with Zwipe enables us to provide the ultimate next-generation payment experience in the market. This innovation will help our partners and customers to differentiate their offerings. Making them more competitive as a result, which in turn drives further growth.”
The partners will collaborate on product delivery and joint sales efforts.
Idex Biometrics touts North American demand
More than 9 out of 10 Americans (91 percent) and Canadians (92 percent) want fingerprint sensors on their payment cards, according to a pair of infographics from Idex Biometrics, published as part of the Zwipe Insights 2021 series, which has previously touched on the UK. Close to three quarters of those surveyed in each market say they would like a biometric payment card in within the next 12 months, and over 60 percent in each country say they would pay for one either separately or as part of their monthly or annual fee.
Cards remain the preferred in-person purchase method for nearly 87 percent of Canadians, and just under 74 percent of consumers in the U.S., where many payment card terminals do not support chip and PIN transactions. The surveys show transaction limits, signatures and PIN codes are not popular among consumers in either market.
Thales studies BNP Paribas’ path to commercialization
Thales reviews the key challenges faced by BNP Paribas when adopting biometric payment cards in a case study, such as whether to have customers enroll in branches or at home, and building a commercialization strategy.
Other challenges involved finding the best way to collect customer feedback and updating internal systems.
The first phase was an iterative pilot, which confirmed the user-friendliness of fingerprint biometric payment cards. This also involved updating enrollment instructions to make sure users knew to place different portions of their finger on the sensor, and creating a training module for customer-facing employees.
The second phase was the commercial rollout, for which the bank decided to use its 1800 branches for biometrics enrollment.
Thales provided not only the product, but a product roadmap, answers to strategic and technology questions, and expertise and resources for personnel training. The company says it is capable of producing thousands of cards per day.
Diebold Nixdorf VP sceptical about cards, sees digital wallet growth
Diebold Nixdorf VP and Head of Financial Services for UK and Ireland Matt Phillips tells PaymentExpert in an interview that banking apps have been the key development in biometric technology for payments over the past decade.
Digital wallets on mobile phones are “the favored adoption of biometric security” Phillips says, suggesting that “if anything, cards will increasingly become obsolete in the future.” He does not envisage biometric cards becoming mainstream at all, but says biometric payments through mobile devices will continue to grow.