Biometric payment cards will conquer 15% of the global payment market by 2026
UBS analysts believe that biometric payment cards could conquer up to 15% of the payments market and generate $5 billion in revenueóin bankóbiometric transactions by 2026. HeadóOther factors influencing changes in the market are reduced costs of service and production of payment cards, the development of new products and services, the development of new products and services, the development of new products and services and the development of new productsój the contactless economy and the rise of successful, commercial programsóin piloting biometrics.
Biometrics in practice
Confirmation of biometric transactions is already a practical solution, with whichóIt is the safest form of payment authentication and not just a technological curiosity. Major technology companies have been testing such payment methods for a long time, e.g. Visa, whichóra has been exploring this area since 2018. United Arab Emirates in February 2021 has already approved facial recognition as a method of identity verification and payment in the private services sector. French bank BNP Paribas in January this year began to offer Visa Premier card, giving the possibility to switch to authorization by fingerprint. A number of other banksóIn, m.in. SocGen or NatWest, róThey are also testing this technology.
The use of this verification method is being introduced in many sectors, not only payments. Evernym, Yoti and iProov are working on vaccine pass security, biometric access control devices have been introduced in Poland, and the company has decided to test biometrics.in. TrustSec – Cisco’s solution minimizes threats to companies’ internal networks, and biometric products, offered e.g. The biometric payment solutions offered by Suprema have achieved the highest sales records in the history of the company.
In Poland, the banking sector has initiated the introduction of selected processóin using biometrics. Interestingly, the first institutions thatóre decided to test biometrics, there have been banks thatóThe verification process is conducted by the Podkarpacki Bank Sp. z o.oóThe Bank of Poland and Bank Polskiej SpóeCommerce). In 2010, PBS was the first bank in Europe to implement finger vein biometrics in its ATMs to facilitate social security payments.
According to ZBP data, Polish banks currently use several technologies: Finger Vein – FingerVision biometrics, FingerPrint – fingerprint biometrics, voice biometrics and handwritten signature biometrics. Verification is used to m.in. The survey was conducted by SW Research, commissioned by Tpay, and shows that 80% of Internet users use biometrics to confirm transactions, make card-not-present withdrawals/repayments at PlanetCash ATMs, log in to the transaction system, authorize checkout operations, sign documentsów.
Biometric technologies are no longer just a curiosity, but rather an answer to customer needsóand ensure the security of their transactions and access to data. Visa research shows that 62% of consumers surveyedóPoles value speed of transactions, which is why 73% of surveyed Polish consumers said they are ready to use biometrics instead of a password to verify payments. Poles place great importance on the speed of transactions, which is why 73% of surveyed PolishóInterestingly, the first institutions to use biometrics faster than passwords, with 76% saying it is easier. 92% of Polish consumersóin, whichóThe respondents of the survey believe that fingerprint recognition is the most effective way to confirm transactionsóin fingeróThe fingerprint biometric is the safest form of payment authentication.
Róspeed and security of payments are also important aspects of e-commerce. Biometrics at this point does not directly affect this industry, but rather financial institutions, whichówhich mediate in online payments, e.g. by verifying access to the banking application, where the transaction is confirmed. Users in this area róThe use of this verification method is being introduced in many sectors, not only payments, but alsoóand at the same time ensure the security of transactions. According to a survey conducted by SW Research on behalf of Tpay, 80% of Internet usersóbanks most often choose instant payments to complete ordersóThe banking sector in Poland has initiated the introduction of selected biometrics processes. BLIK, whichóry is the fastest payment method available in Poland. Our native technology is an innovation on a global scale. BLIK has rapidly gained popularity and is the preferred method of 71% of respondents, and is used on a daily basis by 58% of respondentsów. RóThe difference in usage vs. preference is probably due to the limited availability of this payment method in e-commerce, as not all e-shops or marketplaces’They have integrated payments with BLIK.
Bezgotówkowe China embraces biometric future
The biometric payment verification market continues to grow as competition and consumer demand for data increasesów, któThe system is currently one of the most valuable resources in the worldóin the world. According to the Global Data Market Size report prepared by Warsaw-based spóa company from the new technology segment – Cloud Technologies shows that despite the health and economic crisis caused by the pandemic, the Vistula data market will record a record valuation. Polish spending on digital information will amount to USD 32.1 million in 2020, which means an increase of 17.5% y/y. Analysts spółki announces that this is not the end of good news for this sector. Already next year we should expect a global increase in spendingóin data at 26%, which will result in a total market valuation of $52.3 billion by 2021.
The world’s largest economies are racing to innovate to achieve technological leadership, whichóThe world’s largest economies are racing to be at the forefront of technology, with Ant launching Dragonfly at the end of 2018. Even someóre fast-food chainsóin the Middle Kingdom offer payments. Thanks to this technology, developed by Ant Group, spóAlipay’s parent company – China’s largest digital payment platform, a restaurant guest pays with a scan of their face, whichówhich is performed by a camera embedded in the touch screen of a POS device used to place ordersóvaluation. The use of such futuristic biometric technology is gradually becoming a majoróThe mainstream of the fast-growing payments market in China.
According to a survey conducted by UBS Evidence Lab, about 21% of shoppers in the Ant app’s Alipay and Tencent’s rival WeChat Pay service use a systemóin payments through facial recognition – once or twice a week. UBS analysts believe that advances in biometric technology in China are paving the way for a new, data-rich, seamless payments ecosystem involving retailerów, banks and telecommunications groups. They predict this will help spur economic growth in China, któThe technology of contactless payments will go far beyond the classic – the most popular zaróIn China and around the world.
A separate analysis conducted by UBS China 360, found that by the end of 2019. two biometric payment systems have already reached 300 Chinese cities, with implementation by a wide range of merchantsów. Further growth in the payments industry is still possible, despite such a mature and saturated market as China. Especially as regulators change the market landscape to spur competition in the payments industry and develop new technologies.
This situation is preparing the ground for a battle for innovation, between technology companies, banks and fintechs – The new biometric payment ecosystem includes retailers of data thatóThe use of such futuristic biometric technology is gradually becoming the main focus of retailers and smaller stores alike. This applies to a cross-section of industries, from emerging new models „retail”, for insurance or wealth management.
Digital payments maturing
China’s mobile payment market already leads the world in terms of total transaction volume, far eclipsing that of the United States. By the time the New York City subway system became the first network in the U.S., któThe company will be accepting mobile wallets in 2019., Alipay has used it in the transportation systems of 400 Chinese cities, and WeChat Pay is used in about half of them.
However, such a growth rateóin begins to decline. UBS China 360 observations suggest, m.in. that one of the most popular payment methods in this country – via codeóin QR, has already reached full saturation even in Chinese cities, and Alipay and WeChat Pay are ubiquitous from centróin retail to smaller stores.
Acquiring more buyersów is one of the reasonsóThe system is currently one of the most valuable resourcesóAnt launched Dragonfly, a facial recognition payment system, in late 2018., and Tencent has released its own version, called Frog Pro, a year póOn the other hand we see the uncontrolled development of. Using biometrics, both companies are able to increase the number of transactions in supermarkets and stores because of the technology’s ability to reduce the so-called “hassle. „Payment frictions” – which is the time it takes to complete the transaction after verification and authentication by the buyer and seller. Card transactions and those które requires scanning a QR code, it takes about 15 seconds, while with face recognition the whole process of verifying the user’s biometric data and processing the transaction takes about one second.