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Mobile Biometrics Forecast to Authenticate 65% of mCommerce Transactions in 2020
Mobile biometrics is poised to shake up the global payments market, according to new research from Acuity Market Intelligence (AMI). Forecast to yield $34.6 billion in revenue annually in 2020, mobile biometrics will lower both the costs and risks of mobile payments processing, says AMI in ¨The Global Biometrics and Mobility Report: The Convergence of Commerce and Privacy.¨ Mobile biometrics include technologies such as thumbprint and facial recognition.
Mobile Biometrics Forecast
AMI predicts mobile biometrics will authenticate nearly 65 percent of all mCommerce transactions in 2020. That would represent 126 billion biometric payment transactions generating more than $1.1 trillion in purchase value, AMI highlights in a news release.
Acuity forecasts total biometric transaction volume – payment and non-payment – will exceed 800 million a year by 2020. More than one-third (35 percent) of these transactions will be authenticated via biometrics embedded in mobile devices and 65 percent via biometric apps downloaded by consumers.
"As mobile transaction volume increases, so too will the number of transactions that require biometric authentication,¨ AMI principal and lead analyst Maxine Most was quoted as saying. ¨This increased level of security will be driven by the rise of identity theft and fraud, new payment, service, and information ecosystems that offer greater anonymity to consumers, and by consumer desire to maintain greater control over personal data and enhance their privacy."
Most added that real-time biometrics identification and risk assessment will transform payments processing by enabling consumers to withdraw funds directly from bank and mobile money accounts via their mobile devices. At the same time, it will enable merchants to issue consumer credit directly and on-demand. "This has the potential to totally disintermediate traditional payment methods, such as credit and debit cards, out of the payment marketplace," she said.