In the second post of our series on the Contactless Smart Card, learn about the additional benefits of biometric authentication and why consumers are preferring it.
The last few years have seen a significant decline in the use of cash as a payment method, and this trend is showing no signs of reversing in the future. Indeed, alternative payment methods are on the increase, with the growing use of digital and mobile wallets, as well as the possible introduction of CBDC (Central Bank Digital Currencies) being explored by governments around the globe.
Whilst this had led to fears that the payment card would soon be left obsolete, the usage figures tell a very different story, with contactless payment cards accounting for a staggering 73% of all card transactions carried out in the last year. Right now, the familiar payment card remains the most dominant means of carrying out cashless transactions, and this is predicted to continue.
A Familiar Concept
Biometric authentication is the next logical step in the evolution of the payment card, with the addition of fingerprint sensors, which can be embedded into the card. Already a familiar and trusted concept to consumers, who use fingerprints to secure smartphones, tablets and other electronic devices, it makes for a natural choice when it comes to authenticating financial transactions. Added to the familiarity of carrying and using a contactless payment card, the system is intuitive and simple for users to get to grips with. This will most likley support the enthusiasm of the consumer market to embrace the new and improved payment method.2. Effectively Fighting Fraud
With concerns surrounding the high levels of card fraud  which led to financial losses of almost £400 million in 2019 alone, it's clear that steps need to be taken to improve the security of these transactions. A considerable volume of this fraud is carried out in face-to-face card transactions, proving beyond doubt that existing security methods such as PIN and transaction limits, are no longer enough. And, with the figures of reported fraudulent card on the increase, it is certainly high time for financial institutions to respond with a better solution which can reassure their customers.
3. A Convenient Solution
As a biometric authentication method, the convenience of a card bearing a fingerprint sensor is hard to beat in terms of convenience, as well as security. The consumer is already accustomed to carrying their payment card, and by applying biometric technology, they no longer need to remember a PIN or password in order to authorise a contactless transaction, which also no longer will be constraint by an amount limit. After all, a fingertip is almost impossible to forge, and is always available as a reliable, secure means of proving identity.
The Best Contactless Payment Cards For Consumers
From all angles, it's evident that by including fingerprint recognition technology, the contactless card will be vastly improved. With the familiarity of use, coupled with the convenience and greatly heightened security benefits, it seems certain that consumers will welcome the new payment cards, and be eager to make the switch from their current PIN cards.
With the familiarity of use, coupled with the convenience and greatly heightened security benefits - contactless payment cards are here to stay. In the next blog post, we will discuss about how biometric authentication can secure the future of contactless payment card.
Idex Biometrics ASA published this content on 05 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 January 2022 10:17:07 UTC.