The next few years will see the continued growth of biometric POS terminals, according to a new report from TechNavio. The market research firm predicts that this market will grow at a rate of almost 27 percent (CAGR) between 2016 and 2020.
According to a report synopsis, a major factor in the market’s growth trajectory can be attributed to overlap with time and attendance tracking applications. But it’s growing in merchant POS use cases too, particularly in restaurants, and that’s largely due to its value in protecting customer financial data against fraud schemes such as skimming, in which cardholder data is collected from payment cards swiped through traditional POS readers; and POS RAM scrapers, which breach POS databases to attain such sensitive information.
TechNavio highlights a lack of standardization as a key market obstacle, since it prevents companies from developing widely compatible technologies. But that could change, particularly as mobile payment platforms, which often rely on biometric authentication, rise in popularity. Moreover, major global financial institutions such as Visa are intensively exploring biometric payment options, which should have a powerful trickle-down effect through their networks. Biometric authentication is widely seen as a more secure means of authorizing payments, so there should be considerable incentive to move toward the technology as a replacement of vulnerable password-based security setups.
March 22, 2016 – by Alex Perala