Biometrics Are The Future Of Payment Whether You Like It Or Not

The following report is by Jean-Philippe Niedergang, Group CCO – EMEA CEO of Castles Technology, via Biometric Update:

The use of biometrics as an identification tool is not new; it dates back to ancient times when fingerprints were used as signatures and seals. Application in payment technology is what makes it revolutionary. However, there is a gap between expectations and reality.

Since 2010, there has been an acceleration in this trend, primarily in the use of smartphones, while the fintech sector is still in the testing phases today. Although skepticism is strong in France, some players have already started to innovate in this field.

Biometrics At The Service Of Innovation

The use of fingerprints as a means of verification on smartphones has encouraged the development of biometrics in fintech. According to a survey conducted by Visa , 79 percent of French people trust biometrics as a secure means of authentication, and according to the Groupement des Cartes Bancaires (CB), 52 percent of French people would prefer to use their fingerprint instead of their PIN code.

With a biometric card, it is enough to place a finger on it to validate a transaction without a limit  as long as it is pre-authorized. Because, today, the card’s biometric data are stored securely on the chip, rather than sent to the banking servers, or communicated to the merchants.

The Future Of Payment

Facial recognition, fingerprints, eye scans, and handprints are some of the innovations expected in the payment market.

According to a study by Dentsu Data Lab, conducted in 14 countries in 2021, 81 percent of respondents would be willing to use fingerprints instead of PIN codes. This innovation could improve the customer experience, which is today a continuous challenge for merchants.

By using a totally personal and irreplaceable mechanism, biometric payment will significantly reduce fraud at points of sale and allow for greater efficiency in the automated payment process by reducing waiting times for customers…