A report from Goode Intelligence estimates biometric payments will represent more than $1.67trn in annual transactions by 2023.
The new report also claims that $8.7bn revenue will be generated globally for suppliers of mobile biometric technology by 2023.
Mobile Biometrics for Financial Services; Market and Technology Analysis, Adoption Strategies and Forecasts 2018-2023 – Second Edition, is the company’s third report into biometrics in financial services.
Growth for the biometric payment space is mainly coming from digital transaction methods. In 2018, 68 per cent biometric payments were via digital systems, leaving just 32 per cent used in physical in-store solutions, the report claims.
This percentage is expected to balance a bit more, with digital systems being responsible for 54 per cent and physical systems representing 46 per cent of transactions.
Goode also forecasts that physical mobile biometric payments will have a slower adoption rate in North America, Europe, Africa, ME and LATAM compared to rates in Chine, India and the rest of the APAC region.
Fingerprints are set to continue being the dominant form of biometric identification, due to its wide scale availability. Facial scanners utilising cloud-based AI technology are also expected to increase in popularity.
Goode Intelligence founder and CEO Alan Goode said, “The delivery of financial services is being transformed by a series of digital mega-events that include the Open Banking revolution where these banks and payment services providers are being forced, either by regulation such as the EU’s PSD2 or by pressures from FinTech providers, to open up their digital infrastructure to third parties using APIs.
“This, coupled with the need for speed and friction removal from a range of financial services, has created the demand for alternative identity solutions that can operate in a range of channels from traditional, for example ATMs, to the latest digital financial services including mobile, web and IoT.
The full 206-page report offers a review of current global adoption, market analysis and a review of current biometric technology, among other information.
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