The worldwide market for biometric payments in 2024 was $9.89 billion, and it is anticipated to expand to $45.99 billion by 2035, growing at a 18.12% CAGR between 2024 and 2035.
Biometric payment is a point-of-sale (POS) technology that uses distinct physical or behavioral features, such as fingerprints or face recognition, to safely authenticate transactions. Biometric payment has gained wider usage over the past few years due to the fact that it tends to be more secure than password- or PIN-based systems. Biometric payment can be applied to both in-person and online transactions.
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Market Dynamics
Rise in smartphone usage
The growing popularity of smartphones that are equipped with biometric sensors has caused an upsurge in the adoption of biometric payment systems. Consumers are increasingly looking for payment experiences that are hassle-free and seamless, and biometric payment solutions provide more security through technologies like fingerprint scanning, iris scanning, facial recognition, and voice recognition. In addition, the increased use of mobile phones has also helped the biometric payment market grow. The extensive use of smartphones has provided a favorable environment for the use of biometric payment systems, as people use mobile devices more and more for their transactions.
Increase in cybersecurity threats
The growing threat of cybersecurity is a major reason for the growth of the biometric payment market. Since hackers use advanced techniques to deceive and circumvent biometric technology, the necessity for stronger security measures is critical. Biometric payment systems provide greater security by utilizing technologies like fingerprint recognition, iris recognition, facial recognition, and voice recognition, which are more resistant to cyber attacks. Additionally, the increase in cyberattacks on traditional payment systems has highlighted the need to implement biometric authentication for improving transaction security and fraud prevention. This increase in the threat landscape has spurred the use of biometric payment systems as the most effective weapon to authenticate and secure individuals’ identities during the payment process.
Rise in demand for convenient and secure payment systems
The increasing fears of identity theft and fraud have resulted in a boom in the use of biometric payment solutions, as they provide sophisticated security features and leverage distinctive biological characteristics that are difficult to replicate. Conventional payment systems, including passwords and PINs, are becoming more and more seen as susceptible to hacking and unauthorized use, and thus biometric payment systems are a safer option. Moreover, the use of smartphones and other handheld devices on a large scale has changed the payment environment as mobile wallets and contactless payment methods have gained traction because of their ease of use and speed. Biometric payment technology is easily compatible with these devices as users can authenticate transactions through fingerprints, facial scans, or other biometric attributes. This reduces the requirement for physical cards or PINs, making the payment simpler and more user-friendly, thereby propelling the biometric payment market opportunity.
Biometric Payment Market Trends
The application of biometric authentication for non-traditional payment purposes is gaining popularity as well. Biometric technologies like fingerprint scanning and facial recognition are now being applied broadly across industries beyond payments, such as government, healthcare, and access control. This trend leverages the security and convenience of biometrics to enhance user experience in everyday interactions. Biometric systems, for instance, are being employed in airports to quickly & easily authenticate passengers.
Healthcare organizations, meanwhile, use biometric authentication to securely access patients’ records. This expansion is a sign that biometric technology is increasingly applied as an adaptive identity verification platform in various industries, driving innovation and enhancing business efficiency. In April 2023, for example, Google introduced biometric authentication for Android Auto, where users can gain access to in-car infotainment systems using fingerprint or face recognition. This move extends biometric usage beyond payments, emphasizing convenience and security in automotive interfaces.
The focus on continuous authentication and behavioral biometrics is another trend in the biometric payment space. Traditional biometric identification verifies identity at the time of entry, like when buying something. In contrast, continuous authentication monitors user behavior and biometric patterns in real-time to detect any abnormal or suspicious activity. This approach provides greater security through real-time notifications and dynamically changing authentication levels based on user activity.
Through unique patterns, for example, mouse movements, touch screen gestures, or typing speeds, behavioral biometrics create an in-depth profile of each user, offering a more adaptable and dynamic security framework. This solution ensures robust fraud and illegal access protection in biometric payment systems while responding to evolving cybersecurity threats. For example, in February 2023, HSBC introduced continuous authentication through behavioral biometrics. The system monitors user behavior during online banking sessions, strengthening security through dynamic authentication based on real-time behavioral information, providing a secure banking experience.
Biometric Payment Market Analysis
Discover more about the major segments driving this market
By technology, the market is segmented into contact-based, contactless and hybrid. The contact-based segment leads the market and is anticipated to reach more than 17.44 billion by 2032.
Under the biometric payment segment, the contact segment refers to transactions where payment cards or devices needing physical contact with a reader or terminal to authenticate are fitted with biometric authentication. In this method, consumers typically place their finger, palm, or other biometric identifier on a sensor before they can effect a transaction to authenticate themselves.
Biometric payment systems based on contact reduce the risk of fraud by applying biometric information instead of traditional PINs or signatures, enhancing security. Aside from improving convenience and transaction time, they are increasingly being employed for secure and efficient payment authentication in retail, banking, and transportation settings around the world.
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Biometric Payment Market Report Highlights
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By Type
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 By Biometric Mode
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 By Application
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 By Region
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 Key Market Players
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Alibaba Group Holding Limited, Mastercard, VeriFone, Inc., Thales Group, IDEMIA, Google LLC, Fingerprint Cards AB, Fujitsu, Visa Inc., NEC Corporation |
