7 benefits of using a biometric payment system
Author: huifan Time: 2021-05-07
In recent years, the use of biometrics in the banking industry has increased dramatically, and a new generation of biometric payment systems will accelerate this change.
You are in a local store, and you are about to pay with your payment card. However, you suddenly realize that you do not remember the PIN code. When you frantically try to remember your four-digit code, the people in the queue behind you look angry.
This situation occurs countless times every day around the world, causing friction and frustration for customers and businesses. However, a new generation of biometric authentication methods is emerging, which may make this experience a thing of the past.
What is biometric technology in the banking industry?
The biometric banking system checks an individual’s “what am I” characteristics to verify their identity, whether it's making a purchase, logging into their online account, or applying for a loan. These systems use factors such as fingerprints, iris scanners or face and voice recognition to identify individuals. They can replace or even enhance traditional identification methods, such as PIN codes, passwords or paper IDs. The banking industry's biometric technology has been widely used, especially for logging on to the Internet and mobile services.
7 benefits of biometric payment
Here are the seven main benefits of using biometrics in the banking industry:
Biometric payment technology enables consumers to identify themselves quickly, easily and easily. A biometric card with a fingerprint scanner means that you only need to show it in person to make a purchase, without any other information.
#2. No PIN code required
As in the example above, remembering PIN codes can be difficult-especially for credit or debit cards that we use less frequently. Biometric payment eliminates the need to remember these numbers completely and saves consumers the pressure of remembering multiple PINs for different accounts.
#3. Unrestricted contactless for contactless consumption
Payments for smart cards are usually set to a relatively low limit to minimize the risk of fraudulent purchases if the physical card is lost or stolen. However, when using biometric card payment technology, only the card owner can actually use it. This means that there is no longer a need to restrict contactless payments.
Using the uniqueness of personal biometrics, the use of biometric payment methods can provide customers and banks with greater security. Before authorizing the payment, the card compares the user's finger displayed on the scanner with reference data stored securely in the card. If the card is lost or stolen, even low-value contactless payments cannot be used.
#5. Reduce management
Banks have to bear a lot of management costs when using traditional identification methods. Whether it is issuing a PIN code, producing a home-use card reader, or verifying the identity of a new customer, proving the identity of a customer is expensive. On the other hand, the use of biometric banks means that financial services institutions can greatly reduce their paperwork burden and optimize processes.
#6. Customers' favor
Studies have shown that more than half of consumers said they would prefer to use biometric cards for payment, if any. This may mean that customers will choose banks that provide this feature, rather than banks that use chips and PINs or signatures.
#7. Fast customer entry process
Did you know that 40% of customers abandon the introductory process when applying for a new bank account? When attracting new customers, a smooth onboarding process is essential. This is where biometrics in the banking industry can help. Through fingerprint or iris scanning, customers can quickly verify their identity and immediately start using your service.
The future of biometric payment is bright
As consumers become more accustomed to using biometric data to identify themselves, we can expect fingerprints, iris scans, facial recognition and other methods to become the norm for in-person and online purchases. Banks that provide customers with this option in the field of digital and card devices will stand out in terms of innovation, while also benefiting from reduced costs and enhanced security.
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