The global value of biometrically authenticated remote mobile payments are expected to reach $1.2trn by 2027, rising from $332bn in 2022, according to new findings from Juniper Research.
These types of transactions leverage facial and fingerprint recognition to authenticate remote mobile payments.
Juniper accounts this 365% growth to recent regulatory changes, such as the implementation of strong customer authentication.
The report, ‘Mobile Payment Biometrics: Key Opportunities, Regional Analysis & Market Forecasts 2022-2027’. Claims original equipment manufacturer (OEM)-pay solutions, such as Apple Pay, will be a major driver for the adoption of mobile payment biometrics.
It urges OEM-pay vendors to use their influence over smartphone design to enhance built-in biometric systems within devices, and ensure security is maintained as new threats emerge.
Juniper said SCA has forced financial institutions to implement biometric authentication. To meet this need, they have capitalised on smartphone biometric authentication capabilities, boosting the adoption rates.
Its research found 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, it said. Due to this, it says vendors should offer multiple ways to authenticate, as well as develop new techniques for securing biometrics.
Finally, the report found that as adoption of facial recognition increases, it becomes a bigger target for malicious actors leveraging advanced spoofing techniques, such as digital injection attacks.
As a result, mobile authentication vendors should prioritise the design and implementation of enhanced liveness detection and anti-spoofing techniques to stop fraudulent players.
Last week, a different report from Juniper Research found that mobile operators will generate $27bn from SMS messages related to multi-factor authentication in 2022, rising from $25bn in 2021.
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