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Enterprise Security Magazine | Tuesday, August 01, 2023
Biometric payment is increasingly becoming popular as one of the safest payment methods.
FREMONT, CA: Biometric payment employs physical characteristics for biometric authentication method to identify users and approve withdrawals from bank accounts. The most popular biometric payment system uses finger scanning to read a customer's fingerprint.
The system frequently employs two-factor authentication, in which the user enters a personal identification number (PIN) as usual, and a finger scan replaces a card swipe.
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Biometric authentication techniques include iris identification, retinal identification, face identification, signature matching using DNA, and voice pattern identification.
While facial recognition technology is now swiftly gaining popularity, fingerprint recognition is still the most popular use for biometric solutions.
Additionally, many customers make a direct payment using a digital wallet saved on their smartphone or mobile device.
For instance, newer iPhone models include Apple Pay, which offers an extra choice for easy payments using facial recognition or a PIN on newer iPhone models and a PIN on older versions.
Applications of biometric payment
It has become increasingly popular to use biometrics in grocery stores, gas stations, convenience stores, and online retailers such as Amazon to process one-click payments.
According to the now-defunct biometric payment company Pay By Touch, it authenticated approximately $8 billion in transactions through its biometric services.
The adoption of biometric payments hasn't slowed, particularly in the wake of the COVID-19 pandemic. Visa data shows that over 70 percent of consumers consider biometric payments easier to use.
According to Kenneth Research, the global biometric payment market will grow 36 times in size from 2018 to $20.59 trillion in 2027 at a compound annual growth rate of 49 percent. The mobile payment segment is forecast to grow 52.7 percent during the same period.
Benefits of using biometrics for payment
Biometric technology offers the following benefits:
The retailer saves money per transaction by avoiding carrying cash, checks, or credit cards. This payment method offers users more security, convenience, and a quicker payment experience than credit or debit cards.
Every new technological advancement comes with its obstacles.
The drawbacks of using biometrics for payment
Payment using biometric means is debatable. Critics of biometric payment are concerned that law enforcement or governmental organizations may have access to fingerprint sensors. Historically, law enforcement has been linked to fingerprint scanners.
However, biometric payment service providers rapidly clarify that their databases do not contain the customer's fingerprint. An encrypted integer is generated from the point-to-point measurements of the finger.
A customer's identity is verified by that number instead of their fingerprint. The bottom line is that a biometric payment system is only as secure as the databases and transactions it accesses.
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