A new study by Juniper Research has found that the number of mobile payments authenticated by biometrics will rise to nearly 2 billion this year, up from just over 600 million in 2016.
The new research – Mobile Payment Security: Biometric Authentication & Tokenisation 2017-2021 – found that while Apple Pay had provided the catalyst for initial growth, other leading wallets including Android Pay and Samsung Pay were increasingly offering biometric solutions for authentication.
Furthermore, the size of the opportunity has been boosted by the greater availability of fingerprint sensors.
The research emphasized the increasing momentum behind alternative biometric solutions.
It recognized Mastercard as an early leader in this space through its Identity Check Mobile capability, due to go live later this year.
Informally known as “selfie pay”, this allows users to scan their fingerprints and/or take selfies to validate their identities and thereby make payments.
(Learn More about MasterCard Identity Check: Consumer Research Shows Biometrics (“Selfie Pay”) over Passwords. Courtesy of Mastercard News and YouTube)
Meanwhile, it expected to see strong adoption of the authentication app recently unveiled by India’s identification authority, through which merchants can verify a customer’s ID via either fingerprint or iris scan. (Learn More about India’s Unique Identification Authority (UIDAI) in related article below.)
Indeed, since the biometric data is linked to a bank account, the process acts as both authentication and transaction enabler.
Convenience versus Security?
However, the research argued that the key challenge for service providers would be striking the right balance between end-user convenience and solution security.
As research author Dr Windsor Holden pointed out, “Typically, the more secure the solution, the more time-consuming the authentication process.”
“It is essential to offer a range of verification options allowing clients to determine what level of security is required for a given authentication.”
The complimentary whitepaper, Mobile Biometrics ~ Thumbs Up?, is available to download from the Juniper website together with further details of the full research and the attendant Interactive Forecast Excel (IFxl).
Juniper Research is acknowledged as the leading analyst house in the digital commerce and Fintech sector, delivering pioneering research into payments, banking and financial services for more than a decade.