The Future of Biometrics in Payments | ApnaPay

Card payments have consistently ascended over the last two decades, yet innovation of the card has hindered since the launch of contactless over ten years ago. In the course of these 10 years, the introduction of contactless payments at POS machines or old school EDC machines is the only notable and remarkable change within the payment cards showcase. Until, that is, the recent entrance of the use of biometrics in the payments ecosystem just like in AEPS. A recent research from Goode Intelligence forecasted 2.6 billion to use biometrics enabled payments similar to AEPS by 2023.

But, in any case, what’s the incentive in updating the card further? Contactless cards have increased genuine footing in the last decade. Be that as it may, with numerous markets across the globe still to take the jump to contactless, and others already looking beyond the card to mobile payments, how might we anticipate the card should keep on being the triumph?

Boundless convenience

Two of the noteworthy things concern consumers about contactless cards include security and convenience. For those effectively glad ‘tapping’ with contactless payment cards at Point of sale terminals, the transaction cap is referred as a major point of confusion and dissatisfaction. Global limits for contactless card transactions contrast per country, and remembering when you can and can’t tap can be irritating.

But of course, the higher the cap you have, the greater are the security concerns. This is where the use of biometrics in payments ecosystem come in. The beauty of biometrics is, it is one of the handful security measures that doesn’t compromise with convenience: a triumphant blend of the frictionless contactless card UX with the trust of biometrics. Take the case of AEPS where the Point of Sale transaction or a micro ATM transaction gets authenticated by fingerprint or iris scanner.

However, from current trial announcements, it’s apparent that evacuating the payment cap is a major priority for banks, as well. This can be done with likes of newer technology combining a fingerprint or an iris scanner with payment process. This technology can also be used to process eKYC where the user is authenticated via iris scanner at banking POS to open his new bank account.

Taking the leap

While contactless card adoption has been an immense achievement, it’s amazed to some extent in the regions still conducting their EMV migration. That is all about to get changed, in any case.

With big players like Mastercard and Visa presently mandating all new cards and POS machines issued must be contactless-enabled, worldwide growth of the technology is set to take off in the next couple of years. This sets the ideal stage for biometric payments at point of sale to flourish internationally.

Banks still yet to fuse-in contactless into their portfolio would now be able to skip past the teething problems of conventional contactless cards and bounce directly to delivering more secure and convenient alternative of biometric payments. Also, once retailers have made the initial contactless upgrade to their point of sale infrastructure, no extra investment will be needed to acknowledge these new payment innovation.

Keeping contactless cool

Added security might be the most evident reason to upgrade from contactless cards to AEPS or the  biometric payments, but let’s not overlook the ‘cool’ factor! As banks attempts to keep pace with innovative FinTechs, eKYC & AEPS / biometric payments can offer their customers a increasingly seamless UX, greater choice, and an energising new form factor many will be keen to get their hands on.

Offering the response to the age-old digital finance conundrum of delivering security and convenience to consumers, biometrics will keep on expanding its stake in the world of payments innovation in coming years. Because of its exceptionally one of a kind nature, a fingerprint or an iris scan is extremely secure and therefore, an ideal technology to layer on extra security features within end markets, including POS payments, where multi-factor authentication is turning into the standard. From contactless cards, to wearables, USB dongles, micro ATMs, banking POS and beyond – the possibilities are exciting and inestimable. As a result, the rise of the AEPS or the biometric payments has provided a stage to smaller and more agile FinTech disruptors to take the mantel, making enormous innovative waves up the supply chain and to differentiate and grow technology portfolios into new areas. Put together a old school EDC machine and new age banking POS to realize the difference.

In addition, the use of such biometric technology in the payments’ space will also help to address the global issue that is financial inclusion via eKYC and thus, improving welfare. A standout amongst the most developed models is India’s Aadhaar – the world’s largest biometric ID system with more than 1bn enrolled members. At its heart is a 12-digit unique identification number issued to all Indian residents dependent on their biometric and demographic data. Using biometric authentication, people that face challenges with illiteracy or health impediments that adversely influences their memory will be able to once again enjoy the shopping experience without dread of not being able to provide the pin or their signature at the checkouts.

Security is now turning into a product differentiator, appropriate not just for the mature, but having tangible use cases across a range of market types. Currently there must be a cooperative approach between all parties within the payment technologies value chain to empower adoption and issuance of next-gen biometric payments. As biometric authentication puts the consumers at the focal point of innovation, as opposed to being victims of it, biometrics is turning into the one stop solution to boost customer experience and to scale back payment fraud. By operating seamlessly with current contactless POS machines employed in retail and banking infrastructures, consumers needn’t learn or remember anything when using this technology, they simply use their own unique identity- their biometrics.

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