The advent of technology has made today’s world like a science fiction movie. Digital transformation with artificial intelligence and automation has made the impossible possible now. Biometric verification is one such technology that has changed the course of the world with revamped security measures. Along with having a strong impact on the whole consumer industry, it also has a significant impact on the whole payment industry.
The digital shift of the world has challenged the conventional methods of operation even if it is about opening a bank account, making online transactions or verifying the authenticity of the person. Businesses are in need of a technology that is secure and efficient in order to maintain their competitive edge. AI technology is continuously growing and has proven tremendously reliable for payment transactions.
Continue with the blog further to find out how biometric verification has paved the way for the payment sector.
The Surge in Mobile Payments
The technology is evolving and its opened the door for businesses to adopt mobile payments methods. The cashless payment trend is on the rise. Research suggests that it is expected that mobile payment transactions around the world are up to $750 billion with more than 700 million users by 2020. Taking into account all of this raises security concerns regarding contactless payment.
Online businesses have long used the authentication tools like passwords, online businesses, pin codes etc. Unfortunately, the irresponsible behaviour of people is making such tools volatile for cybercrime. For example, people using simple passwords that are easily guessed or sometimes writing down their passwords that are easily stolen. At times, people will use a similar password for multiple accounts which makes it easier to trace and hack all accounts.
There was a study conducted that and out of all the participants, only one-third of the participants were using unique credentials whereas the others were using the same credentials for the multiple accounts.
Biometric technology like face verification has dealt with such problems. Biometric verification ensures smooth payment transactions without any security concerns throughout the process. The big fish in the industry has already adopted such measures to ensure secure and reliable contactless payment.
The Increase in Biometric Authentication
The world is amidst its digital industrial revolution with a huge amount of money being poured into the development of the e-commerce industry. This has given a rise to cashless payments. Even the days of card swipe has been long passed. Now mobile payment applications are used to make the payments which have driven the industries towards the authentication process. Many companies are already applying the use of biometric verification for security purposes for online payment and businesses.
Benefits of Biometric for Cardless Payments
The online payment trend has grabbed the attention of fraudsters. They are always out there looking for ways to exploit any vulnerable user account. The conventional method of passwords is inadequate now and can be easily hacked. Online biometric verification solution allows identity verification with face verification. Biometric uses the unique features of the end-user and facial features with facial points are unique and can be used to verify the identity of the person. A report suggests that one-third of the consumer believe that biometric is the more secure method for cashless payments. 31 percent of the business owners have declared that they feel safe with payments that are secured by biometric solution and it reduces the chance of fraud.
Enhanced Customer Experience
Mobile payment is extremely convenient but paying through biometric is more convenient. Just by a simple touch of a finger or showing the face on the camera can ensure secure payments. This is so much better than typing complex passwords that the end-user might not even remember. A survey conducted stated that 70% of the respondents think biometric service is easier to use than passwords and 46% of the participants said that biometric is more secure.
Minimum Chargebacks Fraud
Online shopping has given rise to another fraud known as chargeback fraud. Chargeback is the reversal of payments that the owner of the account claims he never made. This is usually helpful in the case of identity theft but when people buy things online request for chargebacks is considered fraud. The selfie biometric helps to ensure the identity of the person for the online businesses when they make the payment.