How Are Biometric Payment Cards Helping Card Service Corporations to Expand their Footprint in the Industry?

Highlights:

• Introduction
• Advantages of biometric payment cards
• The growing popularity of biometric cards in North America and Asia-Pacific

The basic purpose of any security or personal identification system is to provide access to only authorized entities and prevent any duplication or fraud. Hence, to serve this purpose, many engineers and security experts rely on biometrics as they are completely unique for every person and thus ensure the highest level of security. Based on this trend, many financial institutions and banks have launched credit and debit cards with biometric authentication features for enhanced security.

Modern security solution for easy and secure financial transactions

Recently, many multinational technology giants launched advanced payment cards that authenticate the user’s identity using different biometric inputs. For instance, in Jan 2024, Mastercard, a leading payment card services company, announced that it would be launching biometric payment cards that would make use of chip technology along with a user’s fingerprint to verify his/her identity and make in-store purchases. To secure the biometric data, the biometric payment card is designed in such a way that the fingerprint data doesn’t leave the card at any point and the match is done completely on the card.

Compared to conventional payment cards, biometric payment systems offer higher safety, privacy, and security to customers’ data. Studies have shown that as compared to the traditional four-digit PINs, biometrics like fingerprints are much more secure and have around 99.99% accuracy. Also, these cards are quite easy to use as the user can directly tap the card on the POS machine, while placing the thumb on the fingerprint sensor, to make the payment. Apart from advantages for cardholders, merchants, too, can benefit from these cards as they do not have to worry about the genuineness of the cardholders. Furthermore, merchants have experienced a significant increase in revenue as instances of false declines and forgotten PIN transactions have decreased due to the rising use of biometric technology. Traditional credit or debit cards have been one of the biggest contributors to plastic waste and hence have caused significant amounts of pollution and environmental degradation. To tackle this issue, payment card service providers have started launching biometric payment cards that are made from sustainable materials and are biodegradable. Also, since biometric systems require no or very little power for their operations, the need for battery or standalone power supply is done away with. Also, these technology companies have taken necessary measures to make sure that these cards comply with regulatory standards so as to prevent any discrepancies in their working. Thus, payment of any type and any amount can be made using biometric payment cards.

Exploring the reasons behind the rise of the industry in North America and Asia-Pacific

The growth in the popularity of biometric payment cards has been a global phenomenon; however, these cards have become particularly successful in the North America region. The rising pace of digitalization of financial services is expected to become the main factor behind the expansion of the biometric payment card industry in the province. Furthermore, there is a growth in the adoption and usage of contactless cards which is projected to create favorable conditions of growth across the landscape. Additionally, many payment card service providers are headquartered in the US, which is anticipated to play a major role in helping the market flourish.

At the same time, the developing economies in Asia-Pacific such as India, China, Japan, and South Korea are also witnessing a huge increase in the adoption of biometric payment cards. The various advantages offered by these cards, including enhanced security and ease of use, are predicted to open new avenues of growth in the industry in the region. Also, countries in Asia-Pacific, North America, and Europe have focused on data security and privacy which has led to payment card service companies complying with the regulatory standards while launching their services. This has boosted trust in biometric payment cards, thereby improving the revenue share of the sector substantially.

In summary, the convenience and enhanced security offered by biometric cards have made them a popular payment choice in most developed and developing countries. Furthermore, the special focus placed by card service providers on manufacturing eco-friendly products has also played a huge role in augmenting the growth rate of the landscape globally.

For tips and suggestions on how businesses can increase their revenue share in the industry, feel free to contact us.

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