With the steady rise of biometrics our bodies are becoming the future of payment security. Nowadays it is enough with just a quick smile or a wave of the hand, as set in the recently launched Biometric Checkout Program by Mastercard.
Globally, biometrics is gaining ground as a preferred method of authentication across industries, but especially when it comes to digital payment methods.
Contactless, passwordless digital payment systems are highly demanded by consumers. They want to spend less time entering their data to complete a purchase, easily pay for their goods, make cross-border transactions without delay, and buy the products they need or desire at any place and at any time.
Thus, digital payments are undergoing massive changes driven by the need to meet new consumption patterns and the continuous augmentations of mobile devices.
Digital payments include any electronic transaction in which value transfers from one account to another, removing the need for cash, credit or debit cards or checks.
As for biometrics technology, the advantages of securely paying without making physical contact, either through cards or cash, has great appeal, especially after the COVID-19 pandemic.
Paying with a smile
The new Biometric Checkout Program launched by MasterCard on May 2022 “represents a first-of-its-kind technology framework to help establish standards for new ways to pay at stores of all sizes, from major retailers to mom-and-pop shops”, states the company’s press release.
The program’s first pilot was launched in Brazil. It outlines a set of standards to ensure the security and privacy of personal data when people pay biometrically. Banks, merchants, and technology providers have to adhere to these standards to be part of the program.
According to the report Biometric Cards Throughout the World by Idemia “globally, 74% of consumers have a positive attitude towards biometric technology, and the market for contactless biometrics technology is projected to reach $18.6 billion (18.3 billion euros approximately) by 2026”.
With these projections in mind the company launched the Biometric Checkout Program. Customers have to enroll in Mastercard’s biometric checkout services. They can do this in store or at home, through a merchant or identity provider app. Once enrolled consumers can simply check that the bill is right and smile to a camera or wave their hand over a reader to pay. Simple, secure and easy.
Latin America, at the forefront of digital finances
Although the craving for cryptocurrencies is rising around the globe, Latin America seems to be a more fertile ground than Europe or the United States for this king of assets.
The new Payment Index, that annually evaluates consumers’ behavior regarding emerging payment methods, reveals that 51% of consumers in that region have already carried out an operation with crypto assets.
The Index also states that “In Latin America, 54% percent of Latino consumers are optimistic about the performance of digital assets as an investment. Meanwhile, two-thirds of Latinos want greater flexibility to use crypto and traditional payment methods interchangeably in their day-to-day operations”.
MasterCard’s 2022 Index also shows that 86% of Latino consumers have used at least one emerging payment method in the past year and are willing to use emerging methods such as biometrics, digital currencies and QR code, in addition to contactless payments.
A secure and convenient solution for digital payments
According to the study The Future Of Authentication In Financial Services by pymnts.com 68% of financial services users choose security over convenience when accessing financial services.
In fact, 83% of respondents, said that security is “highly” important, and a good user experience is “highly” important for 80%.
The same study reveals that 60% of users “are willing to log in to their accounts with alternative authentication methods, and 60% of those who use mobile apps, mobile browsers and computer browsers say they would be “very” comfortable logging in using methods other than login IDs and passwords”.
Biometrics is settling as the most viable option to find the balance between security and convenience. In Latin America, according to the New Payments Index, 75% of consumers say that “using biometric technologies for identity and payments is more secure than a PIN, password or another form of identification”.
B-FY’s solution for financial institutions, based on open ID, accompanies any financial transaction process based on biometric patterns. B-FY solves the authentication of costumers offering an excellent UX as it seamlessly and securely identifies our customers’ users without the risk of irrevocable consequences.
With five simple steps our custumers’ clients can log in into their banking app and through a QR scanning confirm their data and be 100% identified into the banking service.
Ask for a free demo here to see how B-FY unequivocally identifies customers on any e-banking website.
Miguel is General Manager of B-FY. He has more than 21 years of professional experience in the technology field, and for the last 14 years he has been in leadership positions in software manufacturing companies, which have been in a process of rapid growth.