BIOMETRIC PAYMENTS: Key drivers for adoption will include the implementation of SCA and PSD2
Total transaction values for remote mobile payments authorised using biometric authentication technologies such as face or fingerprint recognition worldwide will reach US$1.2tn by 2027 compared with US$332bn in 2022, according to a forecast by Juniper Research.
The researchers also predict that transaction volumes for biometrically authenticated remote mobile payments worldwide will grow by 383% over the next five years to reach 39.5bn by 2027.
The implementation of strong customer authentication (SCA) and the European Union’s Payment Services Directive II (PSD2), along with mobile payment services provided by smartphone makers and other original equipment manufacturers (OEMs) such as Apple Pay, will be key drivers in the adoption of biometric mobile payments, the researchers say.
“The report found that facial recognition is paving the way for greater adoption of biometrics in mobile payments, with OEM-Pay solutions leveraging the near ubiquity of facial recognition capabilities to provide frictionless checkout experiences for customers,” Juniper’s ‘Mobile Payments — A Biometric Future’ white paper says.
“The SCA requirement of PSD2 (Second Payment Services Directive) has pushed financial institutions to implement biometric authentication. To meet this requirement, financial institutions have capitalised on smartphone biometric authentication capabilities, accelerating the technology’s adoption.”
Biometric remote mobile payments to be worth US$1.2tn globally by 2027 was written by Tom Phillips and published by NFCW.