BASINGSTOKE, U.K.– The value of biometrically authenticated remote mobile payments will reach $1.2 trillion globally by 2027, up from $332 billion in 2022, according to a new study from Juniper Research.
These transactions use biometrics, typically facial and fingerprint recognition, to authenticate remote mobile payments. This growth of 365% is driven by recent regulatory changes, with the introduction of SCA (Strong Customer Authentication) pushing greater adoption, Juniper stated.
The new research, Mobile Payment Biometrics: Key Opportunities, Regional Analysis & Market Forecasts 2022-2027, identified OEM (original equipment manufacturer)-Pay solutions, including Apple Pay, as a driver of mobile payment biometrics adoption. The report urges OEM-Pay vendors to use their influence over smartphone design to enhance built-in biometric systems within devices and ensure that security is maintained as new threats emerge.
SCA Critical to Market Growth
According to Juniper Research, SCA requirement of PSD2 (Second Payment Services Directive) has pushed financial institutions to implement biometric authentication.
“To meet this requirement, financial institutions have capitalized on smartphone biometric authentication capabilities, accelerating the technology’s adoption,” Juniper Research said.
The research projects that the volume of biometrically authenticated remote mobile payments will grow by 383% over the next five years, reaching 39.5 billion globally by 2027.
“To maintain trust and reduce fraud, financial institutions are implementing step-up authentication, where certain transactions are escalated for biometric approval based on risk scoring,” Juniper stated. “Therefore, vendors must offer multiple ways to authenticate, as well as developing new techniques to keep biometrics secure.”
About Face
The report found that facial recognition is paving the way for greater adoption of biometrics in mobile payments, with OEM-Pay solutions leveraging the near ubiquity of facial recognition capabilities to provide frictionless checkout experiences for customers.
“With the use of facial recognition increasing, the technology has become a target for malicious actors using advanced spoofing techniques, such as digital injection attacks,” Juniper stated. “In response, mobile authentication vendors must prioritize the design and implementation of enhanced liveness detection, and anti-spoofing techniques, to combat the ever-evolving role of fraudulent players and ensure that security is not compromised.”
For additional info: Mobile Payments ~ A Biometric Future
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