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Biometric Payment Market Trends

Report ID: GMI10033
Published Date: Jun 2024
Report Format: PDF

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Biometric Payment Market Trends

The use of biometric authentication for purposes other than conventional payment methods is also becoming increasingly popular. Biometric technologies, such as fingerprint scanning and facial recognition, are being widely used in industries other than payments, such as government services, healthcare, and access control. This trend makes use of biometrics' security and convenience to improve user experiences in routine encounters. Airports are using biometric systems, for example, to verify passengers quickly & easily.

Healthcare facilities, on the other hand, utilize biometric authentication to safely access patient records. This growth indicates that biometric technology is becoming more widely used as a flexible identity verification solution across several industries, spurring innovation and improving operational effectiveness. For instance, in April 2023, Google implemented biometric authentication for Android Auto, allowing users to access vehicle infotainment systems via fingerprint or facial recognition. This move extends biometric usage beyond payments, emphasizing convenience and security in automotive interfaces.

The emphasis on behavioral biometrics and continuous authentication is another development in the biometric payment market. Conventional biometric identification confirms identity at the point of entry, such as when making a purchase. On the other hand, continuous authentication keeps an eye on user behavior and biometric patterns the entire time to identify any unusual or suspect activity. This method enhances security by offering real-time alerts and adjusting authentication levels in response to user activity.

Using distinct patterns, such as mouse movements, touchscreen gestures, or typing speed, behavioral biometrics build a detailed profile of every user, providing a more flexible and dynamic security system. This approach guarantees strong protection against fraud and illegal access in biometric payment systems while addressing changing cybersecurity risks. For instance, in February 2023, HSBC launched continuous authentication using behavioral biometrics. The system analyzes user behavior during online banking sessions, enhancing security by dynamically adjusting authentication based on real-time behavioral data, ensuring a secure banking experience.

Authors: Suraj Gujar , Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

The market size of biometric payment reached USD 8.83 billion in 2023 and is set to witness over 17.1% CAGR from 2024 to 2032, due to the growing sophistication of cyber threats directed at financial transactions.

The contact-based technology segment in the biometric payment industry is projected record over USD 17.44 billion by 2032, owing to its ability to lower fraud risks by using biometric data in place of conventional PINs or signatures.

The small and medium size enterprises (SMEs) segment in the biometric payment market is projected to grow at over 17% CAGR between 2024 and 2032, as they frequently cater to local communities or niche markets.

North America market recorded over 32% share in 2023 and is estimated to grow at significant rate between 2024 and 2032, attributed to the rising need to improve security and user experience with foreign businesses and organizations.