A new study from Juniper Research has found biometrics will authenticate more than $3 trillion of payment transactions in 2025, from just $404 billion in 2020. The report found biometrics, including fingerprint, iris, voice and facial recognition are becoming critical to offering compelling app experiences, as mobile payments dominate the payments landscape. The extraordinary growth of greater than 650 per cent will be fuelled by increased use of OEM Pays (such as Apple Pay and Samsung Pay), for both remote and in-store payments, as these applications have already embraced biometric authentication methods.
The research recommends all payment apps take notice of biometrics and build the most seamless user experience leveraging biometric capabilities, or risk losing out to more secure OEM Pay alternatives. The new research, Mobile Payment Security: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2025, found although biometric capabilities will reach 95 per cent of smartphones globally by 2025, only 35 per cent of these smartphones will be used for making biometric payments in e-commerce in the same year. The research identified stored card-on-file payments without biometric security remain common in e-commerce, and that it will require significant efforts by stakeholders to transition spend to biometrically-secured methods.
“While biometrics are now an established part of the ecosystem, payments and e-commerce apps have not kept pace with the rate of innovation,” research co-author Susan Morrow said. “Merchants must adopt biometric capabilities rapidly and educate users to best secure the increasingly massive e-commerce market.”
The research also found contactless mobile payments are a major driver of increased biometrics use, with the number of contactless mobile transactions secured by biometrics increasing by more than 520 per cent between 2020 and 2025. The research identified contactless cards as the main threat, as they do not require the extra verification step, meaning payment vendors need to incentivize wallet use to drive greater adoption of biometrics.
Whitepaper Download: https://www.juniperresearch.com/document-library/white-papers/how-to-maximise-mobile-payment-security
Mobile Payment Security market research: https://www.juniperresearch.com/researchstore/fintech-payments/mobile-payment-security-research-report
