Biometric payments to generate $11.3B in revenue for suppliers by 2030

Biometrics are being used to secure a fast-growing number of payments in what Goode Intelligence calls “the pay by me revolution,” and the market analysis and advisory firm forecasts that 3.5 billion people will be part of it by 2030.

The new report, “Biometrics for Payments; Market and Technology Analysis, Adoption Strategies and Forecasts 2025-2030 – 4th Edition,” predicts that the surge in payments will generate more than $11.3 billion in revenue for biometrics suppliers by the end of the decade.

Biometric payments are growing among both digital and physical transactions, largely to combat payment fraud, which increasingly makes use of AI. The use of biometrics can help detect and prevent fraud throughout the payment process, from digital onboarding through payment transactions.

Bot fraud is just one of the drivers of biometric payment adoption, Goode Intelligence Founder and CEO Alan Goode explains.

“The pay by me revolution is well underway,” he says. “Customers want choice for payments. They also want the assurance that payments are secure and safe. The payment experience must be convenient with as little friction as possible. The average online cart abandonment rate currently stands at 70 percent, with 31 percent abandoned due to friction – often led by frustration of identity and authentication processes.”

Because of this, he says, biometrics are “increasingly a vital part of a payment service providers’ toolkit.”

Market tailwinds for biometric payments

The report spans 301 pages, detailing the shift from device-based biometrics to server-side authentication to support higher-value mobile payments, the increasing use of face biometrics with liveness detection to support identity verification with defenses against deepfakes and other AI-driven fraud attacks. It describes the momentum behind tokenless (or “naked”) biometric payments made at physical points-of-sale with integrated biometric sensors, and the increasing use of biometrics in risk-based authentication and fraud management platforms.

Biometric payments are also getting a boost from digital age assurance regulations like the UK’s Online Safety Act.

Biometric payment cards are becoming a premium product that can meet accessibility requirements, according to the report.

An emerging area of growth covered in the report is hybrid scenarios, in which a digital ID using biometrics serves payments and another application. Those other applications include permission to travel (fast lane border control), ticketing and loyalty programs. Biometrics are also making their way into the automotive industry, for in-cabin payments and ride-sharing platforms.

The report covers both hardware and software and the major biometric modalities used in payments: behavioral, face, fingerprint, finger-vein, palm-vein, palmprint, and voice.

The previous edition of the report, published in 2021, forecast that contactless in-store payments and the adoption of mobile wallets would help drive payments made with biometrics to surpass $5.7 billion in payments supported annually by 2026.

Article Topics

biometric authentication  |  biometric payments  |  biometrics  |  digital ID  |  fraud prevention  |  Goode Intelligence  |  market report