Expansion of biometric payment cards into European banks and fintechs continues
Swedish challenger bank Rocker partners with Idemia and Idex Biometrics to push out a biometric payment card, while Zwipe helps the fintech subsidiary of the Qatar Development Bank to bring its biometric payment card to the market. Both developments seem to support the finding of a study from Juniper Research that says the biometric card industry will swell by up to 850 percent by 2026.
Swedish challenger to launch card from Idemia and Idex
Rocker will reportedly be the first bank in Sweden to launch a biometric payment card to customers with a partnership with Idemia and Idex Biometrics.
A press release issued by Idex says the biometric payment card, named ‘Rocker Touch,’ authorizes payments via a fingerprint sensor embedded into the card, describing the function of cards like Idemia’s F.CODE. Catharina Eklöf, chief commercial officer at Idex Biometrics, says the card is certified by Visa and Mastercard, and will work on any payment terminal.
“As a bank challenger, we are constantly testing new technology to develop smarter financial services that are easier to use and that help our customers improve their everyday financial lives. Launching Rocker Touch is part of our strategy to offer smart and secure payment solutions across platforms, whether you wish to pay with your mobile, a card or with a transfer,” says Andreas Norberg, vice president of Save & Spend at Rocker.
Norberg adds that, “This premium product will be offered as a new service in our comprehensive and growing offering of retail financial services that are easier to use, more flexible and better priced.”
Idex Biometrics CEO Vince Graziani writes in an editorial published by UK Tech News that debit and credit card fraud in Europe has reached 3.6 cents of over €100, or €1.87 billion (approximately US$2.1 billion).
The Rocker announcement from Idex comes as the Norwegian biometric sensor-maker plans for worldwide growth and reports increasing revenue.
Zwipe joins with Qatar FinTech Hub for biometric payment cards
Norwegian biometrics developer Zwipe has partnered with Qatar FinTech Hub to bring the Zwipe Pay card to the market.
The partnership is intended to accelerate adoption of Zwipe Pay across fintechs, issuers, processors and consumers, says Ramzi Saboury, general manager for Zwipe in the MENA (Middle East North Africa) region. Saboury says Qatar is a “core market” in the MENA region for Zwipe, and the company will engage with issuers to pilot Zwipe Pay in the Persian Gulf state. Both parties will work to raise awareness, education, and build engagement on biometric payment solutions in Qatar as well.
Qatar FinTech Hub, a fintech subsidiary of the Qatar Development Bank, says it supports the growth of the fintech industry in Qatar and collaborates with the UK, Turkey, Australia, and Singapore.
Ibrahim Abdulaziz Al Mannai, executive director of advisory at Qatar Development Bank, comments, “I am very happy to announce the collaboration with Zwipe and welcome them as a valued member at the Qatar Fintech Hub. Zwipe is one of the leading technology brands for biometric payment solutions. Our innovation programs have witnessed tremendous success since their launch, and we are extremely happy to incorporate biometrics now. This collaboration with greatly enrich our technology competency and help Qatar to become a regional hub of fintech solutions, catering to the needs of the global market.”
Zwipe is said to be considering expansion into North American and Egyptian markets, and signed a deal with Chilean-based fintech firm IC Payment to bring biometric payment cards to the Latin American and Caribbean regions.
Its 2021 financial statement showed a significant increase in revenue and expenses as it gears up for partnerships in Asia and manufacturing in the continent.
Biometric payment card shipments forecast to balloon to 173M in 5 years
A market study from Juniper Research suggests that global payment card shipment revenue for technology companies will increase to $11.7 billion by 2026 from $9.7 billion in 2022, and biometrics will play a pivotal role in the growth.
The research report titled, ‘Payment Card Technologies: Segment Analysis, Vendor Strategies & Market Forecasts 2022-2026,’ analyzes new segments developing in the payment cards area and the role they will play in the future. It contains market forecasts on segments of the payment cards industry like biometrics, contactless, metal, and dynamic CVV, among other types.
Juniper says the cards may be disruptive technologies in the next five years and will “help evolve the payment experience for the digital age” by increasing security and usability. This would make card usage more appealing in the face of increasing mobile-first payment innovation.
While metal cards are predicted to drive revenue, biometric cards with embedded fingerprint sensors draw special attention for their potential for enormous growth. Juniper estimates that shipments will increase by almost 850 percent over the next five years to 173 million in 2026 globally. Perhaps most interesting of all, this implies just over 20 million biometric payment cards will be shipped this year.
Juniper sees biometric cards enable card payments to better compete with mobile payments platforms, such as Apple Pay and Google Pay, eventually allowing payment cards to have no transaction limits. This potential development would remove a critical barrier to growth for contactless payments, it concludes.
Juniper has published a series of rosy reports on the biometrics and digital identity markets.
biometric cards | biometric payments | biometrics | contactless biometrics | fingerprint sensors | IDEMIA | Idex Biometrics | Juniper Research | market report | Zwipe