SecurityWorldMarket

08/06/2022

Europe leads the way in buoyant biometric payments market

San Francisco, Ca (USA)

The global biometric payment cards market size is expected to reach USD 4,345.8 million by 2030, registering a CAGR of 62.3% from 2022 to 2030, according to a new report by Grand View Research, Inc. The biometric payment cards market can be divided into  biometric debit and biometric credit cards, of which the credit card sub sector is the most buoyant market.

The biometric sensors within these cards offer the most secure payment method to the user, which is fueling the growth of the market. Moreover, the contactless payment method is becoming gradually more popular, that enhances the security and reduces time required for the payment processing. Thus, these aforementioned factors, according to the researchers, are expected to drive the growth of market during the forecast period.

The increased demand for tap to pay payments method in order to initiate touchless transactions has driven the market's growth. For instance, in 2020, according to the Visa Back to Business Study, 48.0% of Germans, after Covid-19, adopted new payment methods from which nearly 16.0% of consumers are using tap to pay technology. Furthermore, the companies operating in the biometric payment cards market are involved in the strategic partnerships to launch the biometric cards, which is fueling the growth of the market. For instance, in 2019, Zwipe, the biometric payment company, entered into the partnership with Goldpac, a China based Fintech Company. This partnership was aimed towards launching the biometric payment cards and offering related services to Goldpac’s extensive customer network.

Global biometric payment card providers are continuously implementing new technologies to improve the customer’s payment experience. For instance, in January 2022, Fingerprint cards, a biometric company, met Mastercard's increased security criteria for its second-generation T-Shape sensor module. This technology made payment processing easy and convenient for the customer as well as for merchants, with increased security. Thus, such advancements in technology open wide opportunities for future growth of the market.

During the Covid-19 pandemic, the contactless payments market was on a surge due to the norms and regulation of avoiding physical contact to prevent the disease. The increased use of biometric payment methods such as voice-based payment methods to avoid direct contact proved to be in favour of the biometric payment cards market, as it offers contactless payment method along with chip enabled payment.

In 2021, according to Idemia, 76.0% of global consumers have a positive attitude towards biometrics and 81.0% of global consumers are ready to use fingerprint replacing PIN codes. With such trends in the industry, it builds high potential to transform traditional payment methods into the new contactless and faster payment processing options.

The European segment is expected to witness significant growth during the forecast period, and analysts suggest this is due to the fact that Europe is home to the key market players that are increasingly entering into partnerships to offer biometric payment cards.  Some of the key players mentioned in the report include: Bio-idz, BNP Paribas, Goldpac Fintech, Idex Biometrics ASA, Infineon Technologies AG, Mastercard, NXP Semiconductors, Thales Group, Visa Inc., and Zwipe.


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