Biometrics payment security: Must-source solutions on the rise

Biometrics as a method of payment authentication is becoming more common since Apple, Samsung and Android Pay let users transact with banks and stores easily via fingerprint-scanning gadgets and apps. A Transaction Network Services survey covering the US, UK and Australia revealed that biometric transactions are increasing, with 15 percent of adults and a quarter of 18- to 24-year-old respondents making biometric payments last year.

About 68 percent of respondents think that biometric transactions will indeed be more mainstream in the next two to five years but 61 percent also said that giving their fingerprint and iris information puts their identity data at risk.

What does this mean for importers of biometric payment authentication products? Is it time to look for more secure alternatives? The good news is that solutions are already here and being developed to improve biometric payments security. Buyers can source these to jump into emerging trends and meet evolving security needs:

Face-recognition mobile phones – There’s no denying that the rise of fingerprint-scanning mobile phones is a big contributor to biometric payment convenience and popularity. In fact, more than a trillion transactions are expected to be authenticated by mobile biometrics annually through 2022, per a report by Acuity Market Intelligence.

Mobile fingerprint payments remain prevalent despite risks of fingerprints being copied, but now, with face-recognition mobile phones introduced, such as the the Face ID-enabled iPhone X and a few China phones, users are getting an alternative option or better, another layer of personal data protection. Mastercard, for instance, has its Identity Check Mobile service that uses fingerprints and selfies with the requirement of face movement to verify mobile transactions.

Biometric cards – Even if mobile biometric payments are predicted to dominate in the near future, ATM cards are still here to stay. Makers are now releasing smart cards that store biometric data.

Some companies, such as IDEX, is even aiming to innovate biometric cards by adding the very convenient biometrics self-enrollment feature. This means that in the future, users can register their fingerprints into the cards themselves even while they’re at home, no more bank visits needed. IDEX also envisions that in payments, PINs will not be necessary anymore once the user has the fingerprint-scanning card.

Other financial service providers, such as Mastercard and Visa, are also reported to test and issue fingerprint scanner cards recently.

In China, makers have already started entering the biometric cards market. Some offer contact and contactless biometric cards that also adopt NFC.

Biometric terminals and tablet PCs – Like fingerprint and face recognition phones, connected tablets are also a convenient way to do biometric payments. Biometric LCD kiosks and tablets fixed on tables or walls let customers select, buy and pay for products and services. These setups are becoming a thing now in banks and restaurants.

Following this trend, importers can check out suppliers from China and the rest of Asia for next-gen biometric tablets.

Palm vein scanners – Palm vein scanning is known to be more accurate than fingerprint recognition for vein patterns cannot be stolen by photography and tracing unlike fingerprints. Palm vein scanners have revolutionized cashless transactions since Biyo, formerly PulseWallet, pioneered one of the first palm vein payment systems. Aside from banks, palm vein payments are now being tested in more places, such as convenience stores in Japan and South Korea.

The global palm vein biometrics market value for the Banking, Financial Services and Insurance sector is expected to reach $678 million by 2020, TechNavio reports. CAGR from 2016 to the end of the forecast period is 22 percent. The BFSI sector’s high demand for secure payment and online account verification methods is a good reason to stock up on palm vein solutions.