The Role of Biometrics in Regaining Trust-building Measures in Contactless Payments

May 8, 2024

trust-building measures

Biometrics technologies are trust-building measures in contactless payments. It uses advanced technology to keep your data safe while you pay. Your unique physical or behavioral traits are captured through biometrics.

Experts say that its security is better than PIN or unique passwords. So, I see even small grocery shops in the US relying on its use. 

Fujitsu developed this unique security technology back in the 2000s. Then, the Ogaki Bank incorporated it into their system. But the technology is much advanced now. It uses sensors to detect unique fingerprints. Also, it might use cameras to read your face and eyes. 

The collected data matches the recorded data, and your transaction is approved. So, it’s fast and clutter-free. But why is its popularity growing exponentially? 

The Popularity of Biometrics in Payment

The popularity of biometrics in payment

Mastercard did a recent survey. It showed that 76% of customers in Asia Pacific prefer using biometric technologies like fingerprint scanners and face recognition. However, Accenture found in another study that 35% of US and Canadian customers are eager to use voice-activated payment systems. 

You already have voice recognition on the latest generation of iPhones. You can use it to authenticate Apple Pay payments, too. 

The rise of biometrics started in 2019-20. By this time, the Covid-19 appeared. People did not want to use credit and debit cards to avoid contact. As a result, contactless cards emerged. Now, it is one of the most popular means of payment. To know why biometrics is the most secure, read the article on biometric payment system.

Retail Banking Research projects that we will have 522 billion biometric transactions by 2026. Are you guessing why biometrics are such trust-building measures? The main reason is that 1 out of 3 people want a secure and encrypted payment channel.

Trust-building Measures in Biometric Technology

Trust-building measures in biometric technology

Biometrics are safe and secure, as known to all. But what’s in there that the secure payment gateways lack? 

Better Than Conventional Security Means 

You can enter a password or pin promoted by any unscrupulous agency asking for payment. But you can’t do the same for biometrics. 

 You can forget your unique password or PIN, too. So, you frequently set an easy one. Again, that is prone to be hacked. So, biometrics is the solution.

It makes payment hassle-free for millennials and Gen Z users. For elders, it makes payments easier. Also, there is no other technology to authenticate identities through its trust-building measures during contactless payments. 

Improving User Experiences 

Biometrics not only improves security in payments through its trust-building measures. It makes your payment experience better, too. It allows you to only carry your phone for payment purposes. 

Biometrics does not take the additional time taken for passwords to match. It also takes a few seconds to insert a PIN. However, biometric authentication happens within a fraction of a second. 

In a department store or mall, your billing happens faster if the merchant takes payment through biometrics. 

Are Trust-building Measures of Biometrics Better than Digital Wallets and Contactless Cards?

You must have used both digital wallets and contactless cards. It’s difficult to find people who don’t have an Apple Pay account in the USA. But none of us worries about how safe they are. 

Comparison with Digital Wallets

Comparison with digital wallets

Digital wallets are on the rise. America is fascinated by it. You rarely find someone who doesn’t use Apple Pay or Google Pay on their phones. 

However, experts have found four issues with digital wallets. My biggest fear is data privacy. Every time, I tap into a different merchant’s payment channel. At the same time, many people fear using an unfamiliar payment portal every time.

There are various digital wallets in use. Apple Pay or Google Pay are popular. However, Americans also use WeChat, Zelle, Cash App, and other less-known apps.

Sometimes, people do not trust these sources.

The third issue is the lack of any regulation. Lots of NBFCs are easily getting wallet licenses in the USA. It is difficult to trust them all for my payments. Lastly, we often hear negative publicity about wallet payments. 

There are no such issues with biometrics at all. Due to its trust-building measures, no data is exchanged with third parties during biometric payments. So, it’s safe, even if you use biometrics for random third-party payments. 

Banks have proper licensing to track and save your biometric data. So, the concern with regulatory standards also doesn’t apply to biometrics. 

Comparison with Contactless Cards

Comparison with contactless cards

Contactless cards are the current favorite of Americans. Don’t confuse between biometrics and contactless cards, as some might also use biometric data. However, your bank recognizes the card details you enter for most cards in circulation. 

Customers in the UK have lost around £400 million in 2019 alone. The reason was the leakage of customer data. Cards have built-in chips that can be hacked. Many fraudsters also misguide you into entering your PIN for fraudulent payments. 

As already known, none of these means can con you if you use biometrics. 

Most people in the USA know the trust-building measures of biometrics in and out. They use it regularly on mobiles and other devices. 

Trust-building Measures that Make Biometrics Safe

Trust-building measures that make biometrics safe

The main trust-building measure is its high-end technology. Biometrics uses sophisticated devices along with better algorithms. Some of these advanced technologies are discussed here. 

  • Algorithms used in biometrics do not exchange data. It tracks and matches customer data. It only sends a message to confirm or reject the person’s identity. 
  • Visa, Mastercard, and PayPal are gradually replacing magnetic strips in cards with fingerprint scanners. So our cards will be safer.
  • Only secure servers are used in biometrics-enabled transactions. Moreover, encryption is present on all servers. Therefore, all my transactions are private and hence safer. 

Where Can I Pay with Biometrics in America?

Where can I pay with biometrics in America

Biometrics is used in various ways to process payments. However, its biggest use cases are ecommerce, vendor payments, and physical PoS payments.

E-commerce Use

Personal identity is confirmed using biometrics technology in ecommerce. Ecommerce sites in the US allow you to pay through select digital wallets. These wallets enable payments using contactless technology. 

Google and Apple Pay allow their users to use biometrics-enabled secure payments. However, experts say that built-in biometrics scanning on mobile devices is not as efficient as the biometrics devices of vendors.

Payment Through Vendor Biometrics 

The vendor biometrics are verified when you initiate your digital banking facilities on your bank account. After that, your unique biometric data is stored in bank servers. The error rate of your phone in detecting your biometric every time is higher. 

After your biometric template has been formed, you can use it for e-commerce payments. Here, you use the digital banking option. After that, you must do a face scan instead of inserting a PIN or password.

Use of Biometrics at Physical PoS

At physical stores, an HD camera captures your biometric details. However, some stores have a totem or an integrated PoS machine that can capture fingerprints, recognize voice, and perform face scans. 

The same integrated PoS device can automatically accept money and deposit it into the merchant’s account.

Recently, Mastercard started a pilot program for these devices in the UK market. Many supermarkets, including Aldi, Lidl, and Morrisons, asked customers to use biometrics. They could use a face scan or fingerprint rather than other means. 

Wrapping Up…….

The inclusion of biometrics into mass payments has just started. Many big malls like Walmart are using it in their stores. Target has also started to use biometrics in some stores.

The strong biometric algorithm adds to the level of security. People of all age groups can use it. Vendors can also use it to accept payments clutter-free.

We can see that most contactless cards now use biometrics to add security to payments. It will eventually reduce the number of PIN or password frauds. Experts say that AI and machine learning will further improve the precision of biometrics. As a result, the rate of payment failures will also be reduced.

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Ankita Tripathy

Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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