The use of biometric authentication is set soar by 2025 as consumers continue to shift towards app-based mobile e-commerce, new research has predicted.
The latest estimates from Juniper Research claim that biometrics such as fingerprint, iris, voice and facial recognition, should authenticate over $3 trillion of payment transactions by 2025. Last year the figure was just $404 billion, indicating a growth of over 650%.
Boosting the demand for biometrics is the use of OEM Pays that include the likes of Apple Pay and Samsung Pay, which already offer the functionality. Consumers are looking for easier ways to pay, both online and in-store, with contactless options being favoured by many since the coronavirus pandemic.
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However, despite the fact that biometric capability is expected to be available on around 95% of all smartphones by 2025, those using the the functionality for actual e-commerce payments is only expected to be around 35%. Indeed, the study found that stored card-on-file payment could still be the preferred method for those shopping online.
Biometric authentication
However, its widespread adoption is also being challenged by contactless card payments, which don't require the extra levels of verification. The creators of digital wallets are therefore faced with making biometrics a little more seamless over the course of the next five years if they’re set to bypass the convenient card option preferred by many consumers.
Juniper’s figures highlight that e-commerce outlets will have to look closely at investing in systems that will be able to process biometrically-secured methods. In many cases they are currently lagging behind.
“While biometrics are now an established part of the ecosystem, payments and e-commerce apps have not kept pace with the rate of innovation. Merchants must adopt biometric capabilities rapidly and educate users to best secure the increasingly massive e-commerce market,” commented research co-author Susan Morrow.
Nevertheless, contactless mobile payments continue to be the driving force behind the rise in the use of biometrics. As a result, contactless transactions utilizing an aspect of biometric authentication is predicted to increase by over 520% in the time between 2020 and 2025.
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