News • 10.06.2022

Biometrically authenticated mobile payments to reach $1.2 trillion by 2027

Security regulations to drive adoption of biometric authentication systems

A person using a smartphone to pay
Source: CardMapr.nl / Unsplash

A new study from Juniper Research has found that the value of biometrically authenticated remote mobile payments will reach $1.2 trillion globally by 2027; rising from $332 billion in 2022. 

These transactions use biometrics, typically facial and fingerprint recognition, to authenticate remote mobile payments. This growth of 365% is driven by recent regulatory changes, with the introduction of SCA (Strong Customer Authentication) pushing greater adoption.

The new research, Mobile Payment Biometrics: Key Opportunities, Regional Analysis & Market Forecasts 2022-2027, identified OEM (Original Equipment Manufacturer)-Pay solutions, including Apple Pay, as a driver of mobile payment biometrics adoption. The report urged OEM-Pay vendors to use their influence over smartphone design to enhance built-in biometric systems within devices and ensure that security is maintained as new threats emerge.

SCA critical to market growth

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. The research found that the volume of biometrically authenticated remote mobile payments will grow by 383% over the next 5 years, reaching 39.5 billion globally by 2027.

To maintain trust and reduce fraud, financial institutions are implementing step-up authentication, where certain transactions are escalated for biometric approval based on risk scoring. Therefore, vendors must offer multiple ways to authenticate, as well as developing new techniques to keep biometrics secure.

Facial recognition to boost mobile biometrics adoption in payments

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. With the use of facial recognition increasing, the technology has become a target for malicious actors using advanced spoofing techniques, such as digital injection attacks. In response, mobile authentication vendors must prioritise the design and implementation of enhanced liveness detection, and anti-spoofing techniques, to combat the ever-evolving role of fraudulent players and ensure that security is not compromised.

The full report can be found here.

Source: Juniper Research

related articles:

popular articles:

Thumbnail-Photo: The SALTO WECOSYSTEM: A new brand DNA for the future of advanced access...
13.02.2024   #Tech in Retail #access control

The SALTO WECOSYSTEM: A new brand DNA for the future of advanced access

The SALTO WECOSYSTEM embodies the commitment to innovation of each SALTO company and demonstrates ...

Thumbnail-Photo: Classic POS reimagined
14.03.2024   #POS systems #printers

Classic POS reimagined

Introducing the new generation CT-S801III and CT-S851III
POS printer range.

Citizen Systems launches new CT-S801III ...

Thumbnail-Photo: How efficient is your workforce management?
24.04.2024   #workforce deployment #workforce management

How efficient is your workforce management?

Workforce management software in retail is successful when it optimizes processes, increases employee satisfaction, and improves ...

Thumbnail-Photo: New digital customer experience on the sales floor...
29.04.2024   #digital signage #data warehouse management

New digital customer experience on the sales floor

Connecting stationary retail through omnichannel digital signage

The dynamics of digital change and the fast pace of customer expectations are increasing ...

Thumbnail-Photo: Smart working in retail: are headsets the solution?...
27.03.2024   #brick and mortar retail #video surveillance

Smart working in retail: are headsets the solution?

Internal communication technology and its potential

Retailers are often faced with the dilemma of combining customer service with operational efficiency. In this intersection ...

Thumbnail-Photo: Intertraffic Amsterdam exhibits ITL innovations ideal for the transport...
02.04.2024   #artificial intelligence #cash handling systems

Intertraffic Amsterdam exhibits ITL innovations ideal for the transport sector

Innovative Technology Ltd (ITL) are set to demo their cash handling and AI powered biometric products to the parking ...

Thumbnail-Photo: EuroCIS Germany next stop for ITL’s cash handling and age verification...
13.02.2024   #Tech in Retail #artificial intelligence

EuroCIS Germany next stop for ITL’s cash handling and age verification solutions

Innovative Technology Ltd (ITL) will be joining retail suppliers and industry professionals at ‘EuroShop 2024 – the leading trade fair for retail technology’ which takes place in Düsseldorf, Germany from ...

Thumbnail-Photo: ‘Problem-solving mission’ with updated Modern Store Framework...
16.02.2024   #Tech in Retail #personnel management

‘Problem-solving mission’ with updated Modern Store Framework

Zebra Technologies will be looking to address challenges with expertise and new solutions at EuroCIS

Zebra Technologies Corporation (NASDAQ: ZBRA), a leading digital solution provider enabling businesses to intelligently connect data, assets, and people, today announced it’s taking the newly enhanced Modern Store framework on a ‘problem ...

Thumbnail-Photo: Hanshow’s ESL Solutions Push Precision and Performance at the National...
04.04.2024   #retail #customer experience

Hanshow’s ESL Solutions Push Precision and Performance at the National Hardware Show

NHS is the premier event where home centers, independent retailers, online retailers, wholesalers, distributors ...

Thumbnail-Photo: POCOs experience: efficiency and customer proximity through digital...
30.04.2024   #customer satisfaction #digitization

POCO's experience: efficiency and customer proximity through digital price tags?

How ESL and other digital elements are used in furniture stores

POCO Einrichtungsmärkte GmbH relies on Electronic Shelf Labels (ESL). So far, 93 of the 127 stores have been equipped with this technology ...

Supplier

VusionGroup SA
VusionGroup SA
55 place Nelson Mandela
90000 Nanterre
Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Ernst-Dietrich-Platz 2
40882 Ratingen
REMIRA Group GmbH
REMIRA Group GmbH
Phoenixplatz 2
44263 Dortmund
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Innovative Technology Ltd.
Innovative Technology Ltd.
Innovative Business Park
OL1 4EQ Oldham