Index Of The Blog
The digital transformation of the world has made it look like science fiction. Technological advancements are changing society and more and more people are opting for technological solutions for their businesses. One such solution is biometric verification that financial institutions and banks have embraced. Biometric verification has a significant impact on the payment industry as well as on the consumer’s industry in general.
The conventional methods in the payment industry have been left behind whether it’s in opening an account, verifying the identity of the individual, or making transactions. Businesses are now seeking an efficient technology to get themselves a competitive edge and meet their customers’ demands. AI-powered technology is always growing and becoming more reliable every day and it could be the perfect solution for the payment industry. Read this blog further to find out how biometric verification is assisting the payment industry.
Mobile Payments
The evolving technology has moved businesses to adopt online and mobile payments. The trend of cashless payments and contactless payments have become really common. According to research, by 2020 the worldwide mobile payment transactions will reach up to $750 billion. If looking at the growing trends of online payments, the concerns for security are becoming even more serious.
In a business that is online, passwords are the most commonly used solution for verifications and authentications. However, the reckless behaviour of consumers has made it easier for cybercriminals to attack. People either use too simple passwords that are easy to guess or they end up writing their passwords at someplace or another and it is easily stolen. A study conducted suggested that only one-third of the participants used passwords that were unique. Two-third of the participants used the same credentials for their multiple accounts. Cybercriminals take advantage of such practice. Biometric verification is introduced to fight such cybercrimes.
Biometric Authentication and What it is
Biometric verification is an added layer of security like two-factor authentication. However, what makes biometric so secure is that it uses the person’s biological features that are only unique to them to verify their identity. These biological features could include:
- Face
- Iris
- Fingerprint
- Thumbprint
- Voice
The criminals can steal the password or guess the password but they cannot steal the person’s body or impersonate it. This is why this method is considered really accurately and is being widely used.
Wide Spread Biometric Verification
The world is currently under its fourth industrial revolution which has moved the world to operate through online means. The contactless payments have raised the need for payment authentication to ensure integrity in the process and avoid any fraud attempt. Business entities are using biometric verification solutions to improve security for payments.
Industry leaders like Ali Express and Amazon are already using biometric technology for face scanning. Amazon has won the market with its smile to pay feature that performs identity verification of the customer for payment while enhancing the customer experience. Apple Pay is successfully using biometric technology through fingerprint scanning. Now it has moved a step ahead to NFC technology for single-tap payments.
The Benefits of Biometric Authentication
- Increased Security
Online payment has become a target for fraudsters and hackers. They are always seeking to exploit users one way or another. Conventional methods can now easily be hacked and biometric has taken over in securing these. Face verification for biometric is an effective security check for e-commerce businesses and since it uses face for verification, it cannot be stolen. Research told that one-third of businesses believe that this new technology will lead to more secure and safe payments. 31% of the businesses that participated in the study claim that they feel secure with a biometric system for cashless payments.
- Enhanced Customer Experience
By making the platform secure, the customer feels better while making their payments. If the customer cannot trust the business then how will the business grow? With biometric, the user can get their identity verified through simple face verification which takes a few seconds. The better the customer experience the more chances the business will have for growth. A survey conducted suggested that 70% of the participants think biometrics is easier than passwords.
