Regulation to push biometric mobile payment authentication to $1.2T by 2027: Juniper
A market study from Juniper Research suggests that the value of biometrically authenticated remote mobile payments will reach $1.2 trillion globally by 2027, driven by new security regulations that require financial institutions to adopt biometrics.
The market report, titled, ‘Mobile Payment Biometrics: Key Opportunities, Regional Analysis & Market Forecasts 2022-2027,’ examines the potential role that the adoption of biometrics in the mobile payments market can hold for emerging and developed regions.
Juniper finds that recent regulatory changes for financial institutions requiring SCA (Strong Customer Authentication) as part of the PSD2 (Second Payment Services Directive) will be the primary reason for the leap in biometrically authenticated mobile payments. The market research firm says the volume of biometrically authenticated remote mobile payments will grow by 383 percent over the next five years, reaching 39.5 billion globally by 2027. This will lead to $1.2 trillion in global biometrically authenticated payments by 2027, Juniper says; a nearly four-fold increase from 2022, which is currently estimated at $332 billion.
The report also points to OEM (Original Equipment Manufacturer)-Pay solutions like Apple Pay as a force of mobile payment biometrics adoption. It suggests that OEM-Pay vendors apply their influence over smartphone design to “enhance built-in biometric systems within devices and ensure that security is maintained as new threats emerge.” And with OEM-Pay solutions leveraging facial recognition to popularize biometrics in mobile payments, Juniper sees greater threats like advanced spoofing techniques. The study recommends that mobile authentication vendors take heed by prioritizing the design and implementation of liveness detection and anti-spoofing technology to shield customers against the threats.
Juniper’s market study is similar to previous research the firm published. In 2021, Juniper suggested that app-based purchases, mobile commerce, and contactless mobile device-based payments will drive more than $3 trillion in biometrically secured mobile payments by 2025. It also anticipates 1.4 billion facial recognition users to make payments by 2025.