Biometric payment cards: Zwipe’s latest market, FPC offers guidance for banks
Biometric payment cards – whether plastic or metal – are on course to become mainstream in 2022, as various companies and research outlets keep reporting. However, a powered card could pose competition to existing cards. Zwipe announces its next market and Fingerprint Cards produces its brochure to persuade banks to take the step.
Zwipe’s next biometric card destination is Malaysia
Zwipe will provide technical and commercial support as well as value-added services for issuers. The cards will be manufactured by a producer in the region certified by Zwipe. Modularsoft, also known as Modular, supplies the majority of Malaysian banks with smart cards. It will work with Zwipe to develop pilots and full commercial rollouts.
“We are very pleased to announce our partnership with Modular, Malaysia’s leading card bureau and a highly trusted brand in delivering payment cards and personalization solutions to issuers in Malaysia,” comments André Løvestam, chief executive officer at Norway-based Zwipe.
“I am confident that this partnership will lead to multiple commercial launches of Biometric Payment Cards and I look forward to a very successful long term relationship between our companies.”
Fingerprints Cards adds to e-literature on biometric payment cards
The report finds that use of debit and credit cards has risen sharply “post-pandemic” and 63 percent of those surveyed expect to use contactless card more than today or whenever possible in future. In 2018, 38 percent worried about their contactless card being stolen, which has risen to 51 percent in 2021 as payment caps have continued to rise (and a quarter are confused about what the payment limits are).
Fingerprint Cards also found that biometric payment cards might be the answer. Half of consumers want such a card, and a further 24 percent are open to the idea. Of the half wanting a biometric card, 51 percent would consider changing their bank to get one and 43 percent would pay extra for a biometric payment card.
The report covers barriers to implementing biometric cards such as 83 percent of banks citing enrollment compared to 53 percent among consumers. However, multiple enrollment options are now available and banks could enjoy benefits such as being “top of wallet” with 82 percent of consumers saying a biometric card would become their preferred payment card.
Reports on the trends for biometric cards are so common they are practically their own genre. Consider IDEX Biometrics’ alternative book, the Smart Payment Association report or the Mordor Intelligence predictions.
Metal cards deserve biometrics
A blogpost by Idex Biometrics considers premium metal cards issued to wealthier (or possibly more indebted) clients could be seen as more desirable to bad actors and therefore a good recipient for biometric sensors.
Other services could be added to the cards such as loyalty schemes and proof of ID. Such benefits could then attract more users for biometric and metal biometric payment cards in particular, according to the blog post.
The firm states that metal card providers are targeting a younger demographic and that these users are more likely than older users to report fraud attempts. It recently announced a partnership with MK Smart to bring its biometric payment cards to Southeast Asia.