Biometrics partnerships set up billions in revenues forecast by analysts
Spectacular market forecasts for digital ID, digital identity verification and digital payments are backed up by new launches and market activity. Biometric payment cards deals involving Thales, Idex and G+D’s E-Kart, and an adoption program launched by Idemia could expand the technology to new markets, while LoginID will provide passwordless FIDO biometrics to a SIM swap fraud solution. The UK Biometrics Commissioner, and Corsight, Trustmatic’s and Anonybit’s CEOs weigh in on important developments around the industry over the past week, while unico has raised $100 million for the second time.
Top biometrics news of the week
The Philippines has set up a web-based solution called PhilSys Check to allow PhilID card bearers to perform offline authentication with the QR code on the back of the ID document. The public key cryptography system can be used for identity verification to public or private-sector services. An update from the World Bank highlights the PhilSys program’s successes, and makes recommendations for further improvement.
The global digital ID market will double in revenues to $53 billion and digital ID document users will grow by 50 percent from 2021 to 2026, according to Juniper Research. The latest reports from the analyst calls for major growth in digital ID cards, more biometrics, and data partnerships between vendors.
Ukraine’s digital ID app for government services, Diia, has been updated to help people deal with identity-related challenges caused by the war, such as identity verification without physical ID documents and online address updates. Scotland’s agency for criminal background checks has endorsed its digital ID initiative, as Estonia continues to receive plaudits for its digital identity achievements.
The UK’s Department of Education failed to check with Biometrics and Surveillance Camera Commissioner Fraser Sampson when it drafted plans to deploy facial recognition in schools around the country. The plans, discovered by Sampson “by accident,” does not impress him, and may not be legal, but 70 schools have already signed up.
Sampson also has concerns about guidance on law enforcement live facial recognition use from the College of Policing Authorised Professional Practice, though Corsight CEO Rob Watts responded with praise, saying it is “clear and comprehensive.” Facial recognition use by police will be put on trial by Sampson in a June event.
Thales is bringing out a biometric payment card and card digitization in Morocco with Crédit Agricole, while Idemia has launched a program to accelerate the adoption of its payment cards issuance and onboarding services by fintechs, and is supplying a trial of a biometric payment card for professionals from an online bank. Thales and Idemia are also competing for a major digital bank security contract in Egypt.
A partnership has been formed between Idex Biometrics and G+D joint venture E-Kart to bring biometrics smart cards to Eastern Europe, with a delivery target before the end of the year. The cards will be built with TrustedBio Max sensors and Infineon security controllers.
Australia is considering requiring telecoms perform robust identity checks with biometrics or multi-factor authentication when processing SIM swaps to cut down on fraud. A similar approach adopted for all SIMs in several African countries has led to millions of blocked SIMs. Axon Wireless is integrating LoginID’s FIDO biometric passwordless authentication into its platform to eliminate SIM swap fraud, meanwhile.
Digital payments are forecast to grow at a 15 percent CAGR to over $200 billion annually by 2028, with a boost in biometrics. Computer chips implanted under people’s skin could be part of that market, and seem to be catching on with some people.
Biometrics are far from commoditized, Future Identity points out in a report, which also says that three-quarters of banks are planning biometrics deployments. Report co-author Donal Greene of Trustmatic puts it as Know Your Algorithm “is just as important as KYC.” The identity verification market is forecast to grow by 15 percent over the next decade by FMI, and the FI report suggests customers already find differentiating between solutions difficult.
Brazil’s unico has raised another $100 million dollars to expand its selfie biometrics, workforce management software and e-signature platform to other Latin American countries. The Series D round, led by Goldman Sachs, which takes a board seat, gives the company a $2.6 billion valuation.
Anonybit CEO Frances Zelazny writes in a LinkedIn post that with 80 percent of NFTs either plagiarized or considered spam, demonstrating the need for chain of custody. If they are to fulfil their potential, including as digital credentials, a decentralized authentication infrastructure that makes use of biometrics is needed.
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