Security Worries Hover Over Biometric Payments Growth

Are biometric payments poised for significant growth/? Maybe not. Substantial consumer security concerns could put its future at risk according to a new report from Reston, Va.-based Transaction Network Services.

The results of an independent March 2018 survey by TNS of 1,027 U.S., 1,032 Australian and 1,024 UK adults. explored consumer attitudes toward, and experiences with, making biometric payments. The report revealed 15% of adults have made a biometric payment in the last year, including a quarter of 18 to 24-year-olds.

Mark Collins, managing director of TNS’ fintech solutions business in the EMEA region, said: “A staggering 61% felt that providing companies with their fingerprint and iris information put their personal identity information at risk. The industry needs to take measures to both ensure the security of this sensitive information and to convey to consumers what protections are in place.”

He did add, more than half are willing to use the widening range of biometric identifiers available, which now includes iris and vein scanning, as well as facial recognition and fingerprints. “Reassurance will be the key to ensuring that biometric payments achieve the successful future that our survey data suggests.”

TNS’ report highlights:

• Respondents selected fingerprints as the most popular identifier overall. However, the second choice varied by region. In the U.S. facial recognition ranked second; but in the U.K. and Australia iris was runner up to fingerprint.
• Sixty-eight percent believed biometric payments will become more commonplace in the next two-five years.
• Security fears appear to have reduced slightly between TNS’ 2018 and 2016 surveys overall. Fears within the youngest age group (18 to 24-year-olds) are not only higher than the rest but have increased significantly in the two years since its previous survey.
• Usage in the last year has been greatest among UK adults.
• When asked if they believed providing companies with their fingerprint and iris information put their personal identity information at risk, it was Australians that showed most concern overall.
• In the U.S. and UK more men reported security concerns, but in Australia women were most concerned.

“Our survey confirms that consumers are experimenting with biometric payments and more than half demonstrate a willingness to use the widening range of biometric identifiers,” said the report in its summary. It also highlighted a significant decline in trust among U.S. adults with increasing numbers reporting security concerns and a large reduction in the number of Americans who feel biometric payments will help to increase financial security by reducing fraud. “Organizations wishing to target the U.S. biometric payments market would find it hugely beneficial to tailor their products and marketing campaigns to allay these fears and build trust in biometric payments.”