Stan Swearingen, CEO of IDEX Biometrics, predicts significant growth in both the biometrics payment card and access control markets in 2020.
At IDEX Biometrics, we’re seeing the potential for a lot of growth in the biometric payment card and access control markets for 2020. We expect to see positive developments in manufacturing and certification of biometric payment cards, thanks to increasing consumer demands for secure payments. It’s my strong belief that both the biometric payment card and access control markets will fully materialise in the coming year. Therefore, my predictions for the biometric industry in 2020 are:
APAC will lead the way in biometric adoption
Biometric payment technology will become increasingly necessary to combat payment fraud in 2020. It looks like Asia will be leading the way in this field, in terms of adoption, production and implementation. The coming year will be pivotal as we start to see certification for the biometric payment card take off across Asia.
IDEX is also excited to see growing interest from Australasia. We expect to be introducing biometric smart cards there in 2020 with Quest Payment Systems, Australia’s largest payment technology supplier.
European regulation will drive innovation
Delays to the Strong Customer Authentication (SCA) ruling will prove a key driver for biometric adoption in 2020. The use of biometric payment cards to authenticate online payments will offer an important way for retailers to balance security measures that comply with the SCA regulation whilst also delivering ease-of-use for the consumer.
Contactless payment limits will disappear
Thanks to advancements in biometric fingerprint authentication technology, payment security no longer comes at the cost of convenience. Next year, increased fingerprint biometric authorisation will secure payment cards, removing the need for PINS and reducing the need for the £30 payment limit, all while making the transaction process faster.
Young consumers will demand biometric adoption
Regulation aside, it will ultimately be people power that propels biometric payment technology to mass adoption. We already know that Generation Z will make up 40% of all consumers by 2020. So it’s important to acknowledge that they expect to be using new, secure biometric technology for increased payment security and convenience. Our latest research found 62% of Generation Z think all banks should offer biometric payment cards to help reduce fraud. In response to this demand, banks will have to introduce fingerprint biometric payment cards to keep young customers, protect users from fraud and build trust with the consumers of tomorrow.
Financial inclusion will come to the fore 1.7 billion adults remain unbanked today. 2020 is the year this will have to change. Payment methods must be accessible and come at an affordable cost for all consumers. In the coming year, fingerprint authentication cards will eradicate a number of obstacles that stand in the way of financial inclusion. Consumers can be linked directly to their card by their fingerprint alone,
supporting those without official identification, while home enrolment devices also save individuals from having to leave the house to register. This will allow consumers to hold on to financial independence for longer, no matter their physical or financial restraints.
Card-not-present fraud will be tackled head-on
The next crucial step for IDEX Biometrics and the wider industry will be to tackle card-not-present (CNP) fraud effectively. Biometric payment cards have the potential to strengthen online payment security and SCA compliance for e-commerce retailers. The addition of a digital dynamic Card Verification Value (CVV) number on the card, for example, will present a new one-time code whenever the card owner’s fingerprint is presented on the card – making online payment fraud a thing of the past.