Biometric Payment Global Market Report 2024

The global biometric payment market has grown strongly in recent years. It will grow from $39.38 billion in 2023 to $42.86 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to security and fraud prevention, financial inclusion, rising cybersecurity threats, consumer convenience, increasing popularity of biometric wearables, government initiatives,.

The global biometric payment market is expected to see strong growth in the next few years. It will grow to $60.45 billion in 2028 at a compound annual growth rate (CAGR) of 9.0%. The growth in the forecast period can be attributed to growing e-commerce, growing contactless payments, widespread use of smartphones, enhanced data privacy. Major trends in the forecast period include biometric payment cards, multi-modal biometrics, continuous authentication, voice and speech recognition, cross-channel authentication technologies.

The biometric payment market is poised for growth, primarily due to the rising demand for secure payment solutions. Secure payment solutions encompass methods, technologies, and processes aimed at ensuring the safety, confidentiality, integrity, and protection of sensitive payment information throughout electronic payment transactions. The increasing appetite for secure payment solutions has led to the adoption of biometric payment methods, which cater to evolving security requirements while striking a valuable balance between security and user convenience in today's payment landscape. As an example, as of March 2021, data from Finaria, a UK-based finance and investment company, indicated that global digital payments were expected to reach $6.6 trillion, with mobile point-of-sale (POS) payments contributing approximately 37%, equivalent to nearly $2.5 trillion, to the total value of digital payments in 2021. Furthermore, this value was projected to witness a robust 90% increase, reaching $4.6 trillion by 2025. Hence, the surging demand for secure payment solutions is expected to be a driving force behind the expansion of the biometric payment market.

The increasing adoption of smartphones is poised to drive the growth of the biometric payment market in the coming years. Smartphones, multifunctional electronic devices that combine the features of mobile phones and personal computers, are being widely embraced for biometric payments. These payments utilize an individual's unique physiological or behavioral characteristics, such as fingerprints, facial recognition, or iris scans, to authenticate their identity during secure transactions. In March 2023, a report by Cybercrew, a UK-based developer of cybersecurity solutions, indicated that smartphone usage in UK households had reached 91.43% in 2021, with projections indicating a rise to 93.8% by 2026. This data underscores the growing adoption of smartphones, making them a significant driver of the biometric payment market's growth.

The biometric payment market's growth during the forecast period may be impeded by the higher production costs of biometric cards compared to traditional payment cards. Biometric systems with high performance necessitate various costly hardware components, including cameras, scanners, sensors, electronic locking systems, and fingerprint readers, along with sophisticated software components. As an example, in the first quarter of 2023, Fingerprint Cards, a Sweden-based company specializing in biometric payment cards, reported a loss of $6,285,411.56 million (70 million Swedish kronor), suggesting that the adoption of this technology might not progress as rapidly as anticipated. Thus, the production costs of biometric cards pose a challenge to the growth of the biometric payments market.

Prominent companies within the biometric payments market are actively working on pioneering biometric checkout programs to enhance the convenience and security of payments for consumers. These innovative checkout programs empower merchants to provide biometric payment alternatives, including facial recognition and fingerprint scanning, as part of the checkout process, thereby elevating the payment experience for consumers. For instance, in May 2022, Mastercard Inc., a US-based credit card company, unveiled its Biometric Checkout Program, an advanced payment solution aimed at improving the convenience and security of payments for consumers. This program enables merchants to integrate biometric payment options like facial recognition and fingerprint scanning technologies into the checkout process, introducing a novel approach to accepting payments. The solution seamlessly combines chip technology with fingerprints, ensuring a convenient and secure verification of the cardholder's identity for in-store purchases. Additionally, it offers several advantages over conventional payment methods and is gaining increasing acceptance among both merchants and consumers.

In August 2023, SentryCard Technologies Inc., a US-based company known for its expertise in security and authentication solutions, completed a merger with X-Core Technologies. This strategic merger positions Sentry Enterprise to deliver unmatched capabilities and an extensive product portfolio to its global customer base. The company is focused on bringing groundbreaking solutions to the identity, payment, access control, and cryptocurrency markets. X-Core Technologies, also based in the US, specializes in the development of intelligent card devices for the payment industry.

Major players 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.

North America was the largest region in the biometric payment market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in biometric payments report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the biometric payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Biometric payments come in three primary types such as contact-based, contactless, and hybrid. Contact-based payments require physical contact between a payment card and the recipient and incorporate hardware, software, and services featuring various technologies like single-factor authentication, fingerprint recognition, iris recognition, palm recognition, face recognition, signature recognition, voice recognition, biometric smart cards, and multimodal payment methods. These payments can be made via smartphones, tablets, biometric and smart cards, and more. They find application in various sectors such as banking, financial services, and insurance (BFSI), retail and e-commerce, travel and hospitality, transportation, healthcare, and more.

This report provides biometric payment market statistics, including biometric payment industry global market size, regional shares, competitors with a biometric payments market share, detailed biometric payment market segments, market trends and opportunities, and any further data you may need to thrive in the biometric payment industry. This biometric payment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The biometric payments market consists of revenues earned by entities by providing services such as digital identity services, cloud-based biometric authentication services, and multi-factor authentication services. The market value includes the value of related goods sold by the service provider or included within the service offering. The biometric payments market also includes sales of fingerprint scanners, facial recognition cameras, palm vein scanners, scanning devices, biometric systems, smart card readers, and wearable devices that are used in providing biometric payment services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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