Nobody loves passwords and only a few consumers love biometrics, but biometrics will win out due to the added convenience and the support biometrics will be receiving from banks. In 2011, 80% of consumers claimed that mobile phone security insufficient, yet 27% of consumers used mobile banking apps. Fast forward to 2015 and only 59% state they distrust mobile security while 60% perform mobile banking. Convenience wins!
It is reported that MasterCard has released its biometric solution in Europe, starting that all important learning curve:
“The days of credit card passwords might be drawing to a close. Mastercard is currently rolling out its Identity Check Mobile payment technology application in Europe. It uses biometrics — like fingerprints or facial recognition — to verify a cardholder’s identity, simplifying online shopping.
Initial markets include the UK, Austria, Belgium, Czech Republic, Denmark, Finland, Germany, Hungary, the Netherlands, Norway, Spain, and Sweden.
Trials have already been held in the US, Canada and the Netherlands. Further global expansion is planned for in 2017.
Most existing identity verification methods take shoppers away from a retailer’s web site or mobile app, where they are often required to remember and enter a password. The problem for retailers is that the process can be time-consuming. Cart abandonment is a problem, as are declined transactions when passwords are incorrectly entered.
The card company said its app eliminates the need for cardholders to recall passwords, dramatically speeding up the digital checkout experience while also improving security. Cardholders can verify their identity by using the fingerprint scanner on their smartphone or via facial recognition technology by taking a “selfie” photo.”
As software becomes more capable of watching, listening, and recognizing who we are, the convenience factor will become overwhelming and the vast majority will decide convenience is right and our doubts about the security of biometrics is wrong.
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
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