Global Biometric Payment Cards Market Size, Share & Industry Trends Analysis Report By Card Type (Credit Cards and Debit Cards), By End Use (Retail, Hospitality, Transportation, Healthcare, Government), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Biometric Payment Cards Market
Market Report Description
The Global Biometric Payment Cards Market size is expected to reach $2.9 billion by 2028, rising at a market growth of 69% CAGR during the forecast period.
Biometric payment is a point-of-sale (POS) technology that utilizes physical traits to identify the user and allow the withdrawal of money from a bank account. The most widespread biometric payment method is fingerprint payment, which is centered on finger scanning. The system frequently employs two-factor authentication, wherein a finger scan replaces a card swipe and the user writes in a personal identification number (PIN) as usual.
The quantity of contactless card transactions is increasing quickly in various economies throughout the world. For instance, according to a Mastercard, contactless transactions will expand by a significant number in the first quarter of 2020. Contactless payment is used by nearly each and every people, and many individuals are keen to continue to use it after the pandemic, owing to its safety and ease. Around the same time, new regulations were being implemented throughout Europe. Payment service providers must monitor and detect unauthorized or fraudulent transactions under the strong customer authentication (SCA) provision of the European Union's regulation on payment services (PSD2).
These dreams may soon become a definite future, as an increasing number of banks are testing the technology. For example, G+D collaborated with NXP, a semiconductor business, and Linxens, a security, and Identity Company, to test biometric cards at Crédit Agricole, a French bank. Biometric authentication was deemed to be easier than a PIN by a substantial number of participants, and it was also found to be more secure by a huge margin.
Customers boosted the utilization of biometric authentication by the end of it for payments over a specific amount, the limit of a standard contactless card without the use of a PIN. The debut of biometric payment cards appears to be appropriate as consumers begin to acclimate to a post-pandemic environment. For banks and its customers, a mix of contactless technology increased security and privacy, and the ease of a fingerprint might be a win-win situation.
COVID-19 Impact Analysis
COVID-19 had an ambiguous impact on the population's living standard. This pandemic has prompted businesses to mobilize swiftly and make both short- and long-term changes to the business models in terms of the product offerings' sales and distribution capacities. The supply networks were affected, causing uncertainty about quarantine duration and impacting product sales. The pandemic has hastened the implementation of electronic services throughout all industries. The growing desire to reduce the spread of this virus, which may be spread by touching things, has fueled the demand for contactless biometric solutions. The use of fingerprints and palm-print identification technology has dropped over this time.
Market Growth Factors
Growing usage for identification and authentication of applications in consumer electronics
Consumer electronics manufacturers, such as those that make smartphones, tablets, notebooks, laptops, and home automation devices, are eager to incorporate innovative features and functions into the products in order to attract new clients and increase the customer base. End-users are becoming more concerned about security as users utilize advanced linked devices and digital technologies to handle sensitive data. As a result, present consumers seek to access bank accounts, email accounts, and other sensitive data such as medical records and financial information via devices that accept biometric authentication.
Major enhancement designed in biometric solutions
In latest years, biometric solutions have seen drastic technological development. Advances in sensing technology, as well as the ubiquitous usage of devices like computers and cell phones, have opened up new possibilities for gathering physiological and behavioral characteristics of humans and analyzing associated data for biometric authentication. Biometric systems backed by machine learning as well as artificial intelligence technologies are giving new possibilities for effectively identifying any anomalous behavior and providing an extra layer of authentication if needed. To prevent data breaches, biometric systems with multi-factor authentication are getting traction.
Market Restraining Factors
The significant cost involved with the biometric systems
Biometric system vendors cater to specialized applications in banking, financial services, government, and insurance (BFSI), consumer electronics, automotive, and a variety of other industries. The cost of developing, manufacturing, installing, maintaining, and shipping the complicated biometric system is enormous. High-performance biometric systems have a lot of software as well as hardware elements (fingerprint readers, scanners, sensors, electronic locking systems, cameras) that cost a lot of money to install and maintain. More advanced biometric technologies necessitate upgraded raw materials and sub-components, resulting in increased costs.
Card Type Outlook
Based on Card Type, the market is segmented into Credit Cards and Debit Cards. The Debit Cards segment procured a substantial revenue share in the biometric payment cards market in 2021. Companies active in the biometric payment card sector are testing debit cards with fingerprint sensors as part of a pilot program. Moreover, the majority of these market participants have completed debit card pilots. For example, NatWest bank and Visa debit cards began a three-month countrywide experiment with some customers.
End Use Outlook
Based on End Use, the market is segmented into Retail, Hospitality, Transportation, Healthcare, Government, and Others. The Retail segment acquired the highest revenue share in the biometric payment cards market in 2021. NFC technology, QR codes, and voice payment techniques have all been adopted by the retail business, generating prospects for segment growth. Additionally, merchants are increasingly embracing the digital and contactless payment card methods.
|Market size value in 2021||USD 122.8 Million|
|Market size forecast in 2028||USD 2.9 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 69% from 2022 to 2028|
|Number of Pages||136|
|Number of Tables||146|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Card Type, End-use, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America emerged as the leading region in the biometric payment cards market with the largest revenue share in 2021. The existence of a significant number of enterprises participating in the industry can be linked to the regional market's expansion. As per Visa, a significant number of Visa cards in New York will be able to make contactless payments. The introduction of contactless to all subways & buses by the New York MTA is fostering such acceptance.
Free Valuable Insights: Global Biometric Payment Cards Market size to reach USD 2.9 Billion by 2028
KBV Cardinal Matrix - Biometric Payment Cards Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Visa, Inc. and Mastercard, Inc. are the forerunners in the Biometric Payment Cards Market. Companies such as Zwipe, Infineon Technologies AG, Thales Group S.A. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Infineon Technologies AG, NXP Semiconductors N.V., Thales Group S.A., Visa, Inc., Mastercard, Inc., IDEX Biometrics ASA, Zwipe, Bio-idz, and Goldpac Group.
Strategies Deployed in Biometric Payment Cards Market
» Partnerships, Collaborations and Agreements:
- Jun-2022: Zwipe joined hands with Fidor Bank, a German online bank. This collaboration aimed to provide customers with access to digital banking and payment services in a secure manner. In addition, Next-generation payment cards supported by on-card fingerprint authentication would help to differentiate the payment services for a smooth checkout experience and enhanced transaction security.
- May-2022: IDEX Biometrics teamed up with Verisoft, a payment software provider. This collaboration aimed to commercialize biometric payment solutions in EMEA and all across the world. Verisoft would offer end-to-end smart card issuance solutions, varying from digital payment solutions, personalization software, card management, and loyalty systems across 32 markets, and has provided EMV solutions to various banks, working with leading card vendors like AustriaCard, IDEMIA, G+D, Kona I and TAG Systems.
- Apr-2022: Visa formed a partnership with PopID, a consumer authentication service. This partnership aimed to offer cardholders new safe, secure, and innovative methods to pay.
- Apr-2022: IDEX Biometrics joined hands with E-Kart, a leader in innovation and smart card technology. This collaboration aimed at market expansion of biometric smart cards in Eastern Europe, with dedicated delivery to issuers.
- Mar-2022: IDEX Biometric formed a partnership with Rocker, a fintech company based in Stockholm. This partnership aimed to release a biometric payment card. The payment card would use IDEX’s fingerprint sensor to authenticate a transaction rather than a personal identification number (PIN). The cards would authorize payments through a fingerprint sensor included in the card.
- Mar-2022: Infineon Technologies joined hands with IDEX Biometric, a biometric company. This collaboration aimed to unify the TrustedBioÒ fingerprint authentication module from IDEX Biometrics with Infineon’s latest SLC38 security controller.
- Jan-2022: Zwipe came into a partnership with Forzacard, the leading domestic card manufacturer, based in Mexico. This partnership aimed to create and unveil biometric cards supported by Zwipe and bring these innovations to banks and organizations seeking the latest solutions relying on biometric card authentication in Central and North America.
- Dec-2021: Mastercard came into a partnership with Jordan Kuwait Bank, a Jordanian public shareholding company. This partnership aimed to launch Jordan’s first biometric payment card and the first World Elite brand card in the MEA region with biometric features to reach commercial availability. In addition, Jordan Kuwait Bank would bring its most wealthy customers state of the art advancements in fingerprint and biometric authentication technology.
- Oct-2021: Zwipe formed a partnership with IC Payment, a privately-owned provider of print, promotional, and payment. This partnership aimed to provide biometric payment solutions in the Latin American and Caribbean markets. IC Payment would offer a comprehensive set of payment solutions for both in-person and digital environments. In addition, both organizations would align the product delivery and make joint sales efforts to deliver biometric cards throughout key markets in Latin America.
- Sep-2021: Zwipe teamed up with NymCard, a BaaS provider located in the Middle East offering a modern payment issuing and processing platform. This collaboration aimed to introduce biometric payment cards in the Middle East and Africa. In addition, this collaboration would ensure faster implementation of biometric payment cards in the region. In addition, Zwipe would deliver commercialization support, expertise, and technical guidance to aid NymCard to unify biometric payment cards in its portfolio.
- Sep-2021: Thales joined hands with Jordan Kuwait Bank, a Jordanian public shareholding company. This collaboration aimed to supply biometric payment cards for contactless EMV transactions. In addition, Thales signal its readiness for commercial rollouts to issuers.
- Jul-2021: Infineon Technologies teamed up with IDEX Biometrics, the leading provider of advanced fingerprint identification and authentication solutions. This collaboration aimed to offer substantial enhancement at the card system level, which allows simple unification into current hot lamination card manufacturing processes.
- Jun-2021: Visa came into a partnership with Abu Dhabi Islamic Bank (ADIB). This partnership aimed to enhance Visa Consumer Authentication Service, which would utilize non-conventional payment verification methods like facial recognition and fingerprints. Under this partnership, bank customers can use the technology to validate online transactions by the ADIB mobile app.
- Jun-2021: MasterCard formed a partnership with FinGo, the world’s first biometric identity authentication and payments platform. This partnership aimed to enable FinGo to grow its footprint for biometric payment services all across the world, opening up access to a network of acquirers and many merchants. Mastercard Payment Gateway Services is also used for age verification, identity and membership, and loyalty schemes, facilitating the usage of vein ID in an array of other settings.
- Mar-2021: MasterCard came into a partnership with Samsung, a South Korean multinational electronics corporation. This partnership aimed to create a biometric card that utilizes a built-in fingerprint sensor to authorize in-store transactions. The new biometric cards would be viable, and any payment terminal that accepts Mastercard would bypass the requirement to use a PIN or signature authorization when making a purchase.
» Product Launch and Product Expansion:
- May-2022: MasterCard introduced the new biometric options. Under this new product, in-person payments could be completed with a smile or motion of the hand, utilizing a face or fingerprint to make checkout more simple. In addition, consumers can register either in-store or at home via an app.
- Jul-2021: Thales released the Thales Gemalto Biometric Sensor Payment Card. This product aimed to substitute the conventional PIN with an on-card fingerprint sensor and needs no altering to current point-of-sale (POS) payment terminals. Banks signing up to use it, though, would require executing a procedure for enrolling users' fingerprints onto the card's secure element.
Scope of the Study
Market Segments Covered in the Report:
By Card Type
- Credit Cards
- Debit Cards
By End Use
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Infineon Technologies AG
- NXP Semiconductors N.V.
- Thales Group S.A.
- Visa, Inc.
- Mastercard, Inc.
- IDEX Biometrics ASA
- Goldpac Group
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North America Biometric Payment Cards Market Report 2022-2028
Europe Biometric Payment Cards Market Report 2022-2028
Asia Pacific Biometric Payment Cards Market Report 2022-2028
What would be the size of the biometric payment cards market by 2028?
The biometric payment cards market size is projected to reach USD 2.9 billion by 2028.
What are the key driving factors and challenges in the biometric payment cards market?
Growing usage for identification and authentication of applications in consumer electronics are driving the market in coming years, however, the significant cost involved with the biometric systems limited the growth of the market.
What are the major top companies in the competitive landscape?
Infineon Technologies AG, NXP Semiconductors N.V., Thales Group S.A., Visa, Inc., Mastercard, Inc., IDEX Biometrics ASA, Zwipe, Bio-idz, and Goldpac Group.
What has been the impact of COVID-19 on the global biometric payment cards market?
The growing desire to reduce the spread of this virus, which may be spread by touching things, has fueled the demand for contactless biometric solutions.
Which segment shows a high revenue share of the biometric payment cards market in 2021?
The Credit Cards segment acquired maximum revenue share in the Global Biometric Payment Cards Market by Card Type in 2021, thereby, achieving a market value of $1.80 billion by 2028.
Which region dominated the biometric payment cards market in 2021?
The Asia Pacific market dominated the Global Biometric Payment Cards Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $721.9 Million by 2028.