Payment Gateway Market Trends

Payment Gateway Market Trends

Biometric technology is gaining significant traction in the payment gateway industry as it enhances security and user convenience by leveraging unique physical characteristics for authentication. Unlike traditional password or PIN-based systems, biometrics—such as fingerprints, facial recognition, and iris scans provide a higher level of security due to their uniqueness and difficulty to replicate. This advancement minimizes the risk of unauthorized access and fraud, as it is considerably harder for malicious actors to spoof biometric data compared to stealing passwords.
 

As payment gateways integrate biometric authentication methods, they can offer merchants and consumers peace of mind, fostering trust in digital transactions and reducing the incidence of chargebacks and identity theft.
 

For instance, in June 2024, Mastercard, Empik and PayEye announced to launch an in-store biometric payment pilot leveraging iris and facial biometrics. In cooperation with PayEye fintech, and technology partner Planet Pay, customers will be able to test paying for purchases with their glance in five Empik stores across Poland. This is the first Biometric Checkout Program pilot in Europe. The pilot is launching in response to the growing popularity of biometric technology.
 

Globally, 74 percent of consumers say they have a positive attitude toward biometric technologies. In Poland, meanwhile, 4 out of 5 respondents say that they use or have used biometric technology, and among 18–25-year-olds, virtually all are familiar with using biometrics.
 

Rising cybersecurity issues pose a significant restraint on the growth of the payment gateway market, as both consumers and businesses become increasingly aware of the risks associated with digital transactions. High-profile data breaches and cyberattacks have heightened concerns over the safety of personal and financial information, leading to a reluctance among consumers to engage in online payments.
 

This skepticism can result in reduced transaction volumes and lower adoption rates for digital payment solutions, ultimately impacting the revenue potential for payment gateway providers. As consumer trust diminishes, businesses may hesitate to invest in payment technologies, fearing potential losses associated with fraud and compromised data.