The US lags behind emerging economies in adopting biometric authentication for payments, but early-stage investments and incumbent activity suggest that it might be catching up.
Payments fraud remains a challenge for merchants and banks. Online “card-not-present” fraud is expected to hit a record $7.2B by 2020, up from an estimated $5.3B in 2017, according to the Aite Group.
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One tool banks, merchants, and payments players are using to fight back is biometric authentication, or “inherence.” Biometric authentication uses the payer’s fingerprint, voice, or face to validate their identity and approve a payment.
Hype around biometric authentication is building. Media coverage of “biometrics” peaked in 2018, and has remained high since that point, as payments players explore biometric authentication as a better and more secure way to authorize digital payments.