Once confined to the realms of science fiction and espionage novels, biometric authentication has become a commonplace method of identification for many individuals.
Features such as fingerprints, facial recognition, and iris scans now grant us access to our smartphones, and soon, they will facilitate payment authentication as well.
Consumers are increasingly seeking innovative ways to simplify their payment processes. Biometric authentication promises swifter, more secure, and seamless payment options across various platforms.
Visa’s research indicates that 74% of global consumers endorse biometric technology. This approach offers advantages such as eliminating the need to remember PINs and passwords, as well as reducing concerns about credit card theft.
Biometrics hold significant potential to enhance business operations by delivering enhanced security and convenience, ultimately streamlining the payment experience. With the technology already available, early adopters are actively developing payment authentication solutions using various distinct biometric markers.
So what is biometric authentication?
Fingerprint verification
It’s common knowledge that fingerprints are unique to each individual, making fingerprint ID technology a long-standing tool utilized by governments and security agencies.
Many individuals are accustomed to using fingerprint technology to unlock their smartphones, with fingerprint verification being the preferred choice among consumers, as indicated by the 2023 Commerce and Payments Trends Survey from Global Payments.
Moreover, 3D Secure 2.0 fraud protection employs device fingerprinting to aid merchants in identifying suspicious activities throughout the entire transaction process.
Amazon has taken biometric authentication a step further with palm recognition technology. Amazon One, launched in 2020, is gaining traction and is poised to become a standard feature across various ecommerce platforms in the near future.
Facial recognition
In addition to fingerprint verification, consumers are well-acquainted with facial recognition technology, which is integrated into their smartphones and frequently used in airport security protocols. Businesses are increasingly adopting facial recognition technology to verify their customers’ payments.
Mastercard has introduced facial biometric payments for physical retail settings, offering consumers novel payment options. Shoppers can scan their face or another unique feature to access their stored payment details. This biometric checkout process adheres to rigorous security standards, instilling confidence in this advanced payment method. These standards mandate that biometric data be encrypted, ensuring its uselessness in the event of a data breach.
Iris recognition
Iris recognition distinguishes individuals by analyzing distinct patterns within the colored portion of the eye. This uniqueness makes iris recognition an excellent choice for biometric verification.
While not as prevalent as fingerprint or facial recognition, iris recognition is gaining traction, with new products utilizing iris-based biometrics entering the market. For instance, the EyePay Mobile Phone, developed by IrisGuard, leverages iris scanning technology to offer financial services through smartphones.
Behavioural biometrics
Additional distinctive aspects of human behavior, such as typing speed, mouse usage patterns, or phone handling techniques, may soon serve as identification markers. These behavioral biometric indicators, occurring subtly in the background, have the potential to streamline transactions for customers and minimize fraud risks.
This technology is playing a pivotal role in combating ecommerce fraud. Although it’s in its early stages, it’s intriguing to observe its evolution and advancement.
What are the risks of biometrics?
For widespread adoption of biometric technology, consumer confidence is paramount. People must perceive a fair balance between convenience and privacy, which hinges on addressing several concerns.
While biometrics can enhance payment experiences with seamless security, there’s a need for heightened security measures to combat potential fraud. For instance, safeguards are necessary to prevent the misuse of customer images from social media for fooling facial or iris recognition systems.
Privacy is another significant concern, as legislation and consumer protection struggle to keep up with rapid technological advancements. Biometric technology developers must take proactive steps to safeguard their customers’ data.
Merchants also face cost considerations, as implementing new technology entails expenses. Early adopters risk investing in the wrong technology, leading to significant financial setbacks. Opting for more widespread authentication methods, such as facial recognition or fingerprint technology, may prove to be more cost-effective than specialized options like iris recognition.
What next for biometrics?
Consumers show willingness to embrace biometric payment authentication, albeit with legitimate concerns. Initial findings from various pilot programs suggest that widespread adoption of biometric authentication for payments is unavoidable. However, like any payment technology, ensuring data privacy and security remains crucial.
Experts in ecommerce payment technologies remains vigilant about emerging developments in this field. Keeping a close watch on these advancements will allow us to address evolving challenges and ensure a secure and seamless payment experience for our customers.
