The global biometric payment cards market is expected to witness significant growth over the forecast period. A biometric payment card combines fingerprint sensors with the chip in order to safely and conveniently verify the cardholder’s identity during the purchases. The sensor in the chip allows the users to authenticate transactions by means of their fingerprints before commencing a payment. The information processing takes place within the cards, so there are no additional requirements of Personnel Identification Number (PIN) for merchants during the transaction process. The demand for biometric payment cards is expected to increase owing to its benefits, such as high security, high payment processing speed, and others.
The growing concerns among customers over the need for additional security while making card payments is driving the demand for biometric payment cards. According to a survey conducted by Fingerprint Cards AB, a biometrics company based in Sweden, in 2018, 38% of consumers globally were worried about the lack of security in their contactless cards if lost or stolen. Apart from security, some cardholders were also worried about the time spent at the point of sale in recalling their card PIN. Biometric payment cards would allow such customers to make payments merely by tapping their card and paying for any amount with enhanced security.
Several companies are striking partnerships for offering biometric payment cards, which is emerging as one of the major factors driving the growth of the market. For instance, in April 2019, Zwipe, a biometric technology company, announced a partnership with TAG Systems Group, a card manufacturer based in Europe. The partnership envisaged the two companies launching a commercial biometric card, which includes a secure at-home enrolment solution.
However, the high costs associated with biometric payment cards as compared to conventional chip cards are expected to hinder the growth of the market. While a conventional EVM chip card costs around USD 1 to USD 2, a biometric card costs approximately USD 20. As a result, banks would have no other option but to pass the cost of biometric payment cards to their customers. For instance, in January 2021, BNP Paribas, a retail banking company, announced that its Visa Premier card would have an option for biometric payment, for which the bank would charge an additional USD 29 to its customers.
The global biometric payment cards market has been segmented into card type, end use, and region. Based on card type, the market has been further segmented into credit cards and debit cards. The efforts being pursued by various companies to offer biometric debit cards to their customers are driving the growth of the debit card segment. For instance, in December 2020, IDEMIA, an identity company, partnered with Rocker, a fintech company based in Sweden. Through this partnership, Rocker offered biometric payment cards in Sweden.
Based on end use, the market has been further segmented into retail, healthcare, transportation, hospitality, government, and others. The strong emphasis companies are putting on launching biometric payment cards for ensuring secure and authorized transactions at in-store terminals is expected to drive the growth of the retail segment. For instance, in October 2020, Mastercard announced a partnership with MatchMove, a fintech company based in Singapore, and IDEMIA to pilot biometric payment cards in Asia to provide enhanced security while making contactless payments at in-store payment terminals.
Based on region, the market has been further segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa (MEA). North America is anticipated to emerge as the largest regional market over the forecast period. North America is home to several major biometric payment card providers. For instance, in March 2021, Tag Systems announced a partnership with Zwipe to issue new biometric payment cards to customers in North America and Europe.
The key players operating in the biometric payment cards market include bio-idz, BNP Paribas, Goldpac Fintech, IDEX Biometrics ASA, Infineon Technologies AG, Mastercard, NXP Semiconductors, Thales Group, Visa Inc., and Zwipe, among others. All these market players are pursuing various organic and inorganic growth strategies, such as strategic partnerships and collaborations, mergers & acquisitions, and new product launches, to expand their presence in the global market.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.
"The quality of research they have done for us has been excellent..."