You are most likely not awed anymore when your smartphone unlocks after reading your fingerprint. That is because biometric verification has become a part of our everyday lives. It is a convenience that we have become accustom to and now expect, not just something in a Mission Impossible movie. The extra security that keeps your smartphone safe can also be applied to the payment process. This increase in security can put users at ease by knowing that only they have access their fingerprint where traditional passwords could use by anyone. Biometric payment verification has become the faster and safer way to pay.
Biometrics On The Rise
Since 2012 and the release of the iPhone 5S, being able to unlock your iPhone with fingerprint has been the standard. Biometric verification, like a fingerprint reader, have made mobile devices more secure and increased the user experience. Instead of having to remember and type in a password users could simply scan their finger to gain access.
Apple Pay was the leader that started the growth for biometrics mobile payments. It allowed consumers to make payments in stores and on apps using fingerprint to access their banking information. Not far behind was Android Pay and Samsung Pay which helped further spread the use of biometric verification. Now about 60% of smartphone models are expected to ship with fingerprint sensors this year. This does not just include high end and expensive smartphones. This technology now expands to mid-range models as well, which will increase the population that has access to this verification process. This ever growing availability of fingerprint sensors is the driving factor behind biometric payment options and their expansion. Mobile payments using biometrics to authenticate the user is forecasted to reach close to $2 billion in 2017, which is up from $600 million last year.
Beyond The Fingerprint
Fingerprints are currently the most common biometric verification, but they are not the only payment solution expected to increase in popularity. Verification through the selfie as well as fingerprint will soon be launched by Mastercard. The Identity Check Mobile will roll out for residences in the US and Canada in 2017. Mastercard soft launched this technology in 2016. When the users were surveyed 74% said that using fingerprints or selfies were easier to use than traditional passwords. 90% said they believed they would use biometrics for online payment security in the future. “Making the online payment experience near frictionless and more secure is a priority for Mastercard. Moving this technology beyond the pilot phase is a significant milestone in the evolution of payments. Online payments are being revolutionized; and now we are making Identity Check Mobile a reality for commercial use in the U.S., Canada, Europe, and soon, the world” said Ajay Bhalla, president of enterprise risk and security at Mastercard.
Another biometric payment option that will soon become more popular is eye scanning. In a recent report by EyeVerify found that 79% of respondents said they want the opportunity to use more biometric authentication methods beyond the fingerprint to access mobile banking or payment apps. 42% said they wouldn’t use a banking or payment app that doesn’t offer biometric authentication.
Companies are recognizing this security want from customers. The ecommerce giant Alibaba acquired EyeVerify in September 2016 to partner with their Alipay. It is speculated that Apple is also working on eye scanning technology that will be used for Apple Pay. “Most people use some form of biometrics every day, but they want more opportunities to use it to make their lives easier and more secure. Banks and payment providers have a huge opportunity right now to build brand trust by giving customers the user experience they want,” said Toby Rush, CEO and Founder of EyeVerify. “Those who are investing in biometrics authentication will be able to increase customer usage and reduce risk at the same time.”
As these payment option become more popular it is important to give the customer the option of what verification they would like to use. They can set it for how secure they feel each verification is or which method is easiest for them.
Benefits For Merchants
Biometric payments were created to make things easier and more secure for the customers. Alongside of the benefits that the customer gets to enjoy from this technology merchants get the benefits too. With this kind of payment verification it creates a close to frictionless payment process. The customer doesn’t have to remember passwords or PINs they just to scan their fingerprint or take a selfie. This saves time and effort on the customers end which means more conversions and sales for businesses. With more security on the customer’s end, which is created through the use of biometrics, it will lessen the risk for fraud and costly chargebacks for merchants. A more secure payment process is beneficial for all parties involved.