It’s no secret that life as we once knew it has been transformed using technology with responsiveness playing a key role in keeping pace with digital transformation while prioritising security. For example, the introduction of biometric identification in the consumer ecosystem has been successfully accepted as ensuring superior security rapidly.
Biometric recognition involves automated identification of physiological properties, such as fingerprints, which are exclusive to an individual and are unlikely to change over time. However, it has also made a big impact on the smartphone market and has replaced security measures, such as passcodes, to protect the user’s data from theft.
Based on global user engagement reports, biometric fingerprint recognition is expected to corner the payment card market in the years to come. This has paved the way for the financial services industry to think beyond PINs and evaluate the extensive potential of biometric-enabled payment systems. In fact. IDEX Biometrics’ recent research found that 53% of consumers would trust the use of their fingerprint to authenticate payments more than the traditional PIN.
Besides battling fraud, biometric fingerprint authentication can deliver a stronger customer experience since it rules out the hassle of remembering PINs or changing them time and time again to ensure credentials are not being hacked. It is a simple and user-friendly on-card enrolment process where no applications or equipment are needed from the user’s end. It has also made the in-store checkout process far more secure and streamlined - resulting in a substantial reduction of abandoned transactions that often happen when a user forgets or mistypes their PIN.
Although biometric authentication eliminates the risk of traditional payment card fraud such as payment card skimming, the chip switching trick, man-in-the-middle attack, keypad jamming, and similar activities, is it safe to say that any type of biometric authentication is a failsafe measure? Sophisticated hackers might use photographs to simulate facial or iris recognition and use them during payment card authentication. This is where fingerprint recognition takes the lead, as it is extremely difficult to obtain a unique imprint.
Fingerprint authenticated payment systems have already been introduced and the high consumer engagement levels are encouraging. The demand for more secure, quick, and easy-to-implement solutions are driving many sectors, including the financial services sector and beyond, to embrace biometrics. So how will consumers benefit from biometric-enabled payment cards? Let’s find out.