Significant Growth Projected for Biometric Payment Terminals
The market for biometric Point-of-Sale (POS) terminals is expected to grow 28% between 2017 and 2021, according to research from Technavio. As of last year, fingerprint identification dominated the biometric POS terminals market with an 85% share of the revenue, but facial recognition, iris recognition, palm vein identification, retina recognition and voice recognition are all on the rise.
According to Raghu Raj Singh, a lead analyst at Technavio for computing devices research, “The biometric POS terminals market will grow at a significant pace since the need for secure payment methods has become a necessity with the growing number of fraudulent transactions. Biometric POS terminals provide an extra layer of security since biometrics is extremely difficult to duplicate.”
Technavio’s research uncovered three major reasons the market for biometric payment terminals is growing:
- Digitalization: Worldwide, we are transforming into a cashless society. While countries such as India, China, Russia and Denmark are already moving from paper money to digital money, researchers believe the entire world may be digital by 2030. While digital currency may be safer than paper money, it is also prone to cyber-attacks. Biometrics may help to increase security.
- Rise in Fraud: It seems as if a new data breach is in the news every day. Generally, these breaches involve a hacker installing malware on a company’s payment system, which allows the criminal to remotely access customers’ payment card information. Just recently, Chipotle announced one such breach that affected nearly all of their 2,250 locations. The hope is that biometric POS terminals would enhance customer security.
- Adoption of EMV Standards: EMV standards were adopted to ensure more secure payment transactions. Chip-based cards create a dynamic code for each transaction, which makes it nearly impossible for hackers to decode and steal customer information. However, analysts fear that criminals will soon catch up to this technology, which makes a shift to biometrics appealing.
“The use of biometric POS can help in adding an extra layer of security to financial transactions and, therefore, make payments more secure. There is also no need of an OTP or debit or credit card for transactions since the authentication is the person’s biometrics,” says Raghu.