Study: Biometric payment cards to boost banking industry security

A new study from analyst firm ABI Research said that biometric technologies are steadily growing their presence in more banking applications, with embedded fingerprint sensor payment cards being the latest addition finally ready to go public.

Photo credit: www.apperian.com

Photo credit: www.apperian.com

Fingerprint embedded payment cards will enjoy an impressive growth over the next years reaching 160 million shipments by 2022 with a 5-year CAGR standing at approximately 400%, the analyst firm said.

While the Middle East, Africa, and North America will be among the first regions geographically in which higher shipments are expected during 2018, forecasts indicate that Europe and Asia Pacific will have a larger penetration rate over the coming years.

Mastercard is at the helm, leading this biometric wave in payment cards. Other key vendors include FPC, Gemalto, IDEMIA, Next Biometrics and Zwipe.

The banking industry is aiming for more biometric applications and has been greatly driven by the positive response and increased adoption of fingerprint technologies in the consumer segment.

Fingerprint recognition sensors in consumer devices are expected to increase with a modest but steady growth, reaching 1.7 billion organic shipments by 2022.

Apple’s decision to go with face instead of fingerprint recognition for the iPhone X caught other vendors and suppliers by surprise, causing them to revisit their strategies for future sensor shipments in smartphones and tablet devices.

In general, biometric technologies continue to dig deeper into key IoT verticals which will, in turn, affect digital security, encryption and communication protocols alike.

“We are currently traversing the period when enterprise along with promising up-and-coming sectors like smart home and automotive are evaluating how biometrics can adapt into the constantly evolving security framework – this is not an easy task,” commented Dimitrios Pavlakis, industry analyst at ABI Research.

“The mission of ‘de-siloing’ data and tackling the issue of a digital IoT transformation is already a challenge and the advent of biometrics in more IoT verticals will only exacerbate the problem.”

Moving forward, data depict a higher rate of biometric security, user, and device ID applications in the enterprise and banking industries as well as an increased adoption of EMR (Electronic Medical Records) in the healthcare segment.

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