“…facial recognition and fingerprint recognition will be the two most popular forms of biometric authentication, largely because they are the two most common modalities in contemporary mobile devices.”
Juniper Research is expecting to see a dramatic uptick in the volume of remote transactions that are cleared with biometric technology. The firm’s latest report specifically concerns the mobile remote payments market, and predicts that 39.5 billion remote mobile payments will be authorized with some form of biometric authentication by 2027.
That represents an increase of 383 percent over the current figure. The picture is similar with regards to the raw dollar value. Consumers will use mobile biometrics to process $332 billion worth of transactions in 2022, and that number will jump 365 percent to reach $1.2 trillion by the end of the forecast period.
According to Juniper, the need for Strong Customer Authentication (SCA) under the new PSD2 regulations will force many financial institutions to adopt better payment authentication technology. That, in turn, will drive many of those institutions to biometrics. Juniper also expects manufacturer-backed payment solutions like Apple Pay and Google Pay to boost adoption rates. On that front, manufacturers can leverage their position to produce more devices with biometric capabilities, and to create an ecosystem in which users are incentivized to take advantage of those features.
In terms of technology, Juniper’s report indicates that facial recognition and fingerprint recognition will be the two most popular forms of biometric authentication, largely because they are the two most common modalities in contemporary mobile devices. However, Juniper noted that cybercriminals are increasingly trying to use digital injection attacks and other spoofing techniques to get past facial authentication systems, so authentication providers will need deliver better liveness detection to prevent fraud and retain the trust of their customers.
Financial institutions are expected to pair liveness detection with risk scoring to provide a smoother user experience. Payment providers can ask for step-up authentication in situations in which there is a high level of risk, or forego that step to speed up transactions in lower risk scenarios.
Looking at the broader-picture, the GSMA has previously reported that mobile money platforms (regardless of authentication method) were used to process $2.1 trillion worth of transactions in 2020. Grand View Research, meanwhile, has predicted that the overall market for mobile payment solutions will hit $273.1 billion in 2028. Goode Intelligence believes that biometrics will be crucial to the growth of the payments industry in the wake of COVID-19.
May 30, 2022 – by Eric Weiss