How Has the Biometric Payment Market Evolved Historically and What is its Current Size?
The biometric payment market has seen considerable growth due to a variety of factors.
• The size of the biometric payment market has experienced significant expansion in the past few years. The market, which is estimated to be worth $42.86 billion in 2024, is projected to increase to $46.61 billion in 2025, with a compound annual growth rate (CAGR) of 8.7%.
Factors such as security and fraud prevention measures, financial inclusion, growing threats to cybersecurity, the convenience to consumers, the surge in popularity of biometric wearables, and government schemes have all contributed to the notable growth during the historic period.
What Does Future Hold for The Biometric Payment Market By 2029?
The biometric payment market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for biometric payment is forecasted to experience robust expansion in the upcoming years. It is projected to reach a value of $66.74 billion by 2029, with a compound annual growth rate (CAGR) of 9.4%.
This growth in the predicted period is linked to the rise of e-commerce, increased contactless payments, prevalent smartphone usage, and improved data privacy. The key trends anticipated in this forecast period are biometric payment cards, multi-modal biometrics, continuous authentication, as well as voice and speech recognition, and cross-channel authentication technologies.
What Are The Primary Growth Drivers In The Biometric Payment Market?
As secure payment solutions gain popularity, the biometric payment market is expected to experience an uptick. Secure payment solutions, which encompass technologies and protocols ensuring the safety, confidentiality, and integrity of financial transactions during digital payments, have spurred the use of biometric payment systems. These systems balance user convenience with rising security needs in the current payment landscape. For example, the European Central Bank, based in Germany, noted that the number of contactless card payments in the first half of 2023 grew by 24.3% from the first half of 2022, reaching 20.9 billion, while the corresponding total value amplified by 25.9% to €0.5 trillion (545.27 billion). Thus, the surge in secure payment solutions demand will propel the biometric payment market's growth.
Biometric Payment Market Driver: An Upswing in Smartphone Usage Bolsters Biometric Payment Market Expansion
What Is The Segmentation Of The Global Biometric Payment Market?
The biometric payment market covered in this report is segmented –
1) By Type: Contact-Based, Contactless, Hybrid
2) By Component: Hardware, Software, Services
3) By Technology: Single Factor Authentication, Fingerprint Recognition, Iris Recognition, Palm Recognition, Face Recognition, Signature Recognition, Voice Recognition, Biometric Smart Card, Multimodal
4) By Mode Of Payment: Smartphone And Tablet, Biometric And Smart Cards, Other Modes
5) By Application: Banking, Financial Services And Insurance (BFSI), Retail And Ecommerce, Travel And Hospitality, Transportation, Healthcare, Other Applications
Subsegments:
1) By Contact-Based: Fingerprint Recognition, Palm Recognition, Iris Recognition, Facial Recognition
2) By Contactless: Fingerprint Recognition, Facial Recognition, Voice Recognition, Iris Recognition
3) By Hybrid: Multi-Modal Biometric Systems, Biometric Payment Cards, Device-Based Biometric Payments
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How Are Emerging Trends Reshaping The Dynamics Of The Biometric Payment Market?
Leading firms in the biometric payments market are introducing inventive biometric checkout programs aimed at facilitating smoother and safer payment transactions for customers. These newly designed programs allow vendors to provide biometric payment choices, such as facial identification and fingerprint scan, during the payment process. For example, in May 2022, Mastercard Inc., a credit card company based in the US, unveiled their Biometric Checkout Program. This groundbreaking payment scheme aims at making payments more user-friendly and secure. This system permits vendors to provide biometric payment alternatives, including face identification and fingerprint scanning technology, during shopping checkout, introducing a novel method for businesses to receive payments. The system melds chip technology with fingerprints to verify the card user's identity effortlessly and securely for purchases made in-store. In addition, it presents several benefits over conventional payment techniques, leading to growing acceptance by vendors and customers.
Who Are the Key Players In The Biometric Payment Market?
Major companies operating in the biometric payment market are:
• Apple Inc.
• Alphabet Inc.
• Samsung Electronics Co Ltd.
• Alibaba Group Holding Limited
• Fingerprint Cards AB
• Tencent b-bldings Limited
• Fujitsu Ltd.
• Visa Inc.
• Paypal Holdings
• NEC Corporation
• Mastercard Incorporated
• Safran S.A.
• Thales Group
• NXP Semiconductors N.V.
• ASSA ABLOY Group
• Ant Group
• Gemalto
• PagSeguro Digital Ltd.
• IDEMIA
• Cielo SA
• Verifone Systems. Inc.
• StoneCo Ltd.
• Linxens Holding SAS
• Network International Holdings plc.
• KONA I Co Ltd.
• Suprema Inc.
• Payconiq International SA
• Mada Communications Int'l
• Precise Biometrics
• CardLab Inc.
What Are The Regional Insights Into The Biometric Payment Market?
North America was the largest region in the biometric payment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in biometric payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
