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Data for today’s episode is provided by Mercator Advisory Group’s Report: Biometrics Use Is on the Rise for Payments: Banks and Merchants, Get Ready to Adopt Faces and Fingertips for Authentication
Favorable Consumer Attitudes Toward Biometric Payments:
- 88% of consumers want additional authentication requirements when paying merchants or contractors.
- A study conducted in November 2020 found that 59% of consumers would be willing to pay additional monthly fees if their bank offered biometric payment options.
- In e-commerce, 41% of consumers are very or extremely concerned about the security of digital accounts.
- A 2021 Mastercard study found that 53% of consumers consider biometric retail payments secure.
- The same Mastercard study found that 60% of consumers feel safer using biometrics to make purchases than they do using a PIN.
- COVID-19 may be contributing to consumers’ willingness to use biometric payments.
- 63% of consumers said they tried a new payment method that they would not have tried under normal circumstances.
Mercator Advisory Group released a new report covering biometric authentication titled Biometrics Use Is on the Rise for Payments: Banks and Merchants, Get Ready to Adopt Faces and Fingertips for Authentication. The research explains the current market and discusses the driving factors that influence rate of adoption and how different stakeholders can gain a foothold in this rapidly growing ecosystem.
This report covers the breadth of today’s biometric authentication technologies, including how the introduction of behavior-based security has the potential to transform the payments industry. Through outlining the success and challenges faced by global entities in implementing this cutting edge technology, this report provides readers with valuable insights on how to introduce innovative products in this field. Additionally, the legislative developments at the state and federal levels in biometrics and consumer privacy are outlined to provide readers with a comprehensive perspective on the current regulatory landscape.
“Since our 2017 report, COVID-19 and shifting consumer preferences have accelerated the deployment of biometric authentication in the payments industry,” comments Tim Sloane, Vice President Payments Innovation, Mercator Advisory Group. Sloane continues: “In this rapidly developing field, it is necessary to have a firm understanding of the potential and limitations of the technology, including anticipated challenges in tailoring it to meet your market needs. It is time for all payments and financial entities to learn about privacy concerns and legislation, new developments, and the partnership opportunities in biometrics.”