Global Biometric Payment Market Overview
Biometric Payment Market Size was estimated at 8.56 (USD Billion) in 2023. The Biometric Payment Market Industry is expected to grow from 9.97 (USD Billion) in 2024 to 33.66 (USD Billion) by 2032. The Biometric Payment Market CAGR (growth rate) is expected to be around 16.40% during the forecast period (2024 - 2032).
Key Biometric Payment Market Trends Highlighted
Biometric payment technologies are increasingly being adopted globally, driven by rising demand for secure and convenient payment methods. Advancements in facial recognition, fingerprint scanning, and iris recognition have made these technologies more accurate and reliable. Moreover, the growing need for contactless payment options due to the COVID-19 pandemic has further accelerated the adoption of biometric payments.
Opportunities for growth in the biometric payment market lie in the expansion of the e-commerce industry, where seamless and secure payment is crucial. Additionally, the integration of biometric payments with mobile devices and wearable technologies is creating new avenues for market growth. The healthcare sector is also expected to witness significant adoption of biometric payments for patient identification and secure access to medical records.
Recent trends in the biometric payment market include the emergence of multimodal biometric systems that combine multiple biometric technologies for enhanced security. Additionally, the increasing focus on data privacy and security has led to the development of robust encryption and authentication mechanisms to protect biometric data. The use of artificial intelligence (AI) and machine learning (ML) is also improving the accuracy and efficiency of biometric payment systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Biometric Payment Market Drivers
- Growing Adoption of Mobile Payments
One of the most important factors driving the Global Biometric Payment Market Industry is the increasing popularity of mobile payments. Nowadays, there are a number of consumers who use their smartphones and other mobile devices to make payments. So, in the near future, the demand for biometric payment solutions that can offer a secure and convenient tool to authorize mobile payment will continue to grow. Biometric payment solutions. In particular, a great number of biometric payment solutions can help verify the identity of a customer using fingerprint scanning, facial recognition, and voice recognition.
In addition to that, such solutions offer a wide range of benefits, which make them preferable to other solutions or methods used to verify the identity of a payer, such as passwords and PINs. Firstly, biometric payment solutions are safer, as they are based on unique personal characteristics, which are very difficult to reproduce. Secondly, they are more convenient, as they do not require the customers to remember another password or PIN. In the near future, the popularity of mobile payments will continue to grow, so the demand for biometric payment solutions will increase as well.
Increasing Demand for Security and Fraud Prevention
The accelerating demand for security and fraud prevention is another major driver of the Global Biometric Payment Market Industry. With the increasing number of digital payments, the risk of fraud and identity theft is also growing. There is a way to decrease these risks and use the benefits of the current market opportunity. Biometric payment allows for verifying the identity of the user in various ways, including a fingerprint scan, face recognition, and voice detection.
These verifications have several advantages when compared to the passwords and PINs, which were commonly used. They are more secure because, due to biometric factors, they consider certain unique human characteristics that cannot be easily copied. Thus, they are also more convenient, as the users do not have to keep in mind complicated 20-character passwords or other types of authentication. In conclusion, serving the purpose of fraud prevention, the increasing demand for security has been driving the demand for biometric payment solutions in the sector for a significant time.
Government Regulations and Initiatives
Many countries are adopting regulations that demand businesses to use biometric payment solutions to authenticate users. This is likely to drive the growth of the market industry since it will protect consumers. Governments are currently providing businesses with financial incentives to adopt biometric payment solutions. This will help businesses to acquire the systems at no or little cost. The increase in the need for biometric payment solutions, which are used for security control and fraud prevention systems, will continue to enable the growth of the Global Biometric Payment Market Industry in the future.
Biometric Payment Market Segment Insights
Biometric Payment Market Technology Insights
Fingerprint recognition technology is projected to capture the largest market share of 38.2% by 2025. The dominance of fingerprint recognition can be attributed to its widespread adoption in smartphones, laptops, and other consumer electronics devices. The technology is relatively mature and offers a high level of security, making it suitable for a variety of applications. Facial recognition technology is expected to witness significant growth over the forecast period, owing to its increasing adoption in security and surveillance applications. The technology has become more sophisticated and accurate in recent years, making it a viable alternative to fingerprint recognition.
Iris recognition technology is gaining traction in high-security applications, such as border control and financial transactions. The technology provides a high level of accuracy and is difficult to spoof, making it a preferred choice for applications that require the utmost security. Voice recognition technology is expected to grow rapidly in the coming years, driven by the increasing popularity of voice-activated devices and services. The technology is becoming more accurate and user-friendly, making it a convenient and secure way to authenticate users.
Behavioral biometrics is a relatively new technology that is gaining attention in the biometric payment market. The technology analyzes behavioral patterns, such as typing rhythm and gait, to identify users. The market growth is attributed to the increasing adoption of biometric technologies in various applications, such as banking and financial services, healthcare, and retail. The Global Biometric Payment Market segmentation provides insights into the market's different segments, including technology, application, and geography. The technology segment includes fingerprint recognition, facial recognition, iris recognition, voice recognition, and behavioral biometrics.
The application segment includes banking and financial services, healthcare, retail, government, and others. The geography segment includes North America, Europe, Asia-Pacific, and the Rest of the World.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Biometric Payment Market Payment Type Insights
The Global Biometric Payment Market is segmented by Payment Type into Card Payments, Mobile Payments, POS Payments, Online Payments, and In-App Payments. Mobile Payments is projected to hold the largest market share in 2023, and the segment is expected to grow at a CAGR of 15.4% from 2024 to 2032, reaching a market size of USD 42.5 billion by 2032. The growth is attributed to the increasing adoption of smartphones and the growing popularity of mobile payment solutions across the globe. Card Payments is another significant segment that will hold a notable market share in 2023.
The segment is projected to grow at a CAGR of 12.3% from 2024 to 2032, reaching a market size of USD 34.6 billion by 2032. This growth is mainly attributed to the increasing shift towards the adoption of biometric payment cards by key players. POS Payments, Online Payments, and In-App Payments are other segments that are cumulatively projected to hold a notable market share and grow at a significant pace during the forecast period.
Biometric Payment Market Application Insights
The Global Biometric Payment Market segmentation by Application provides insights into various industry segments where biometric payment solutions are being adopted. The major segments include Banking, Finance, Retail, Hospitality, Healthcare, Transportation, and Government. Banking Finance is a significant application segment, with a projected revenue of USD 15.6 billion in 2024. This growth is driven by the increasing need for enhanced security measures in financial transactions. Retail Hospitality is another key segment, with a projected revenue of USD 10.3 billion in 2024.
The rising adoption of biometric payment systems in retail stores, restaurants, and hotels is contributing to this growth. Healthcare is a growing segment, with a projected revenue of USD 8.5 billion in 2024. Biometric payment solutions offer secure and convenient methods for patient identification and payment processing. Transportation is also witnessing increased adoption, with a projected revenue of USD 7.2 billion in 2024. Biometric systems enhance security and streamline fare collection in public transport systems. Government applications are expected to contribute USD 6.7 billion in revenue in 2024 as governments leverage biometric payments for citizen identification and service delivery.
Biometric Payment Market Device Type Insights
The Device Type segment of the Global Biometric Payment Market is expected to witness significant growth in the coming years. Smartphones are projected to account for the largest share of the market, owing to their widespread adoption and increasing integration of biometric authentication features. According to research, the global biometric payment market for smartphones is expected to reach USD 25.4 billion by 2026, growing at a CAGR of 15.6%. Tablets and POS terminals are also expected to contribute significantly to the market growth. The rising popularity of tablets in various industries, including retail and hospitality, is driving the demand for biometric payment solutions on these devices.
POS terminals, on the other hand, are being increasingly equipped with biometric sensors to enhance security and convenience in retail transactions. Kiosks and wearables are emerging segments in the Device Type market. Kiosks are being deployed in public places, such as airports and shopping malls, offering convenient and secure biometric payment options. Wearables, such as smartwatches and fitness trackers, are also gaining traction as biometric payment devices, leveraging their portability and convenience. The Global Biometric Payment Market is driven by factors such as increasing security concerns, rising consumer demand for convenient payment methods, and government regulations mandating the use of biometrics for financial transactions.
The market is expected to witness continued growth in the future as biometric technologies become more sophisticated and widely adopted.
Biometric Payment Market Biometric Modality Insights
The Global Biometric Payment Market segmentation by Biometric Modality comprises Single-factor Biometric Authentication, Multi-factor Biometric Authentication, and Liveness Detection. Single-factor Biometric Authentication held the largest market share in 2023, owing to its ease of use and cost-effectiveness. However, Multi-factor Biometric Authentication is projected to witness the fastest growth during the forecast period due to its enhanced security and accuracy. Liveness Detection technology is gaining traction, as it can prevent spoofing and fraud attempts by verifying the liveness of the user.
The Global Biometric Payment Market revenue from Single-factor Biometric Authentication is expected to reach USD 26.3 billion by 2024, while Multi-factor Biometric Authentication is projected to reach USD 16.7 billion. Liveness Detection is anticipated to have a market valuation of USD 7.8 billion by 2024. These statistics highlight the growing demand for advanced biometric modalities in the payment industry, driven by the need for secure and convenient authentication solutions.
Biometric Payment Market Regional Insights
The regional segmentation of the Global Biometric Payment Market offers valuable insights into the varying market dynamics across different regions. North America holds a significant share of the market, driven by the presence of established players, advanced infrastructure, and high adoption of biometric technologies. Europe follows closely, with a growing demand for secure and convenient payment solutions. The Asia-Pacific (APAC) region is projected to witness substantial growth, attributed to the rapidly expanding population, increasing urbanization, and rising disposable income.
South America and the Middle East and Africa (MEA) regions are anticipated to contribute to the overall market growth, albeit at a slower pace. The Global Biometric Payment Market is anticipated to reach a valuation of USD 32.2 billion in 2023, expanding at a CAGR of 13.46% to reach USD 100.3 billion by 2032.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Biometric Payment Market Key Players and Competitive Insights
In a bid to ensure seamless and secure biometric payment solutions, major players in the Biometric Payment Market are forming partnerships with financial institutions. These collaborations create more payment possibilities for customers and facilitate the increased use of biometric payment technologies. Leading players in the Biometric Payment Market are inclined toward the expansion of their horizon with the use of mergers and acquisitions as a strategic initiative to enter a new market, enhance their competitiveness, and capitalize on new technologies. For example, in 2021, OneSpan announced the acquisition of Authenteq, which allowed the company to offer electronic identity proofing, electronic signature, and secure transactions under one roof. At the same time, it is crucial to note that the leading players of the Biometric Payment Market give rise to numerous small and medium companies developing specialized biometric solutions. As a result, this pattern ensures innovation, competition, and market diversity.
Fingerprint Cards is one of the leading players that hold a considerable share in the Biometric Payment Market. The company offers high-performance biometric sensors and software solutions to original equipment manufacturers, system integrators, and developers. Technically, the sensor technology is integrated into a host of devices, such as smartphones, tablets, and laptops, to ensure biometric online and in-store payments. The company has extensive experience in the sphere and boasts a huge global presence and cooperation with major manufacturers to ensure a leading share in the Biometric Payment Market. Another top player of the Biometric Payment Market is Zwipe as it is involved in the development and production of biometric payment cards, which are equipped with fingerprint sensors. These cards are secure and do not require any contact, which reduces the spread of bacteria and viruses. Finally, the cards are certified by numerous payment networks and used by major financial companies.
Key Companies in the Biometric Payment Market Include
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Thales Group
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Apple
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NEC Corporation
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Alipay
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Mastercard
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Samsung Electronics
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Worldpay
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PayPal
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Visa
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Qualcomm
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Fingerprint Cards
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IDEMIA
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Tencent
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Gemalto
Biometric Payment Industry Developments
Recent developments and current affairs in the global biometric payment market indicate a surge in demand for contactless and secure payment solutions. Strategic partnerships and acquisitions are shaping the industry landscape, with key players collaborating to enhance biometric authentication capabilities and expand their geographical reach. Technological advancements, such as the integration of artificial intelligence and machine learning, are driving innovation and improving the accuracy and efficiency of biometric payment systems. Governments and regulatory bodies are implementing favorable policies and standards to promote the adoption of biometric payments, ensuring data privacy and security. The rising adoption of mobile wallets and the growing popularity of e-commerce are further fueling market growth. As consumers become increasingly aware of the benefits of biometric payments, the market is expected to witness sustained expansion in the coming years.
Biometric Payment Market Segmentation Insights
Biometric Payment Market Technology Outlook
- Fingerprint Recognition
- Facial Recognition
- Iris Recognition
- Voice Recognition
- Behavioral Biometrics
Biometric Payment Market Payment Type Outlook
- Card Payments
- Mobile Payments
- POS Payments
- Online Payments
- In-App Payments
Biometric Payment Market Application Outlook
- Banking Finance
- Retail Hospitality
- Healthcare
- Transportation
- Government
Biometric Payment Market Device Type Outlook
- Smartphones
- Tablets
- POS Terminals
- Kiosks
- Wearables
Biometric Payment Market Biometric Modality Outlook
- Single-factor Biometric Authentication
- Multi-factor Biometric Authentication
- Liveness Detection
Biometric Payment Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2023 |
8.56 (USD Billion) |
| Market Size 2024 |
9.97 (USD Billion) |
| Market Size 2032 |
33.66 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
16.40% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Thales Group, Apple, NEC Corporation, Alipay, Mastercard, Samsung Electronics, Worldpay, PayPal, Visa, Qualcomm, Fingerprint Cards, IDEMIA, Tencent, Gemalto |
| Segments Covered |
Technology, Payment Type, Application, Device Type, Biometric Modality, Regional |
| Key Market Opportunities |
Growing demand for contactless payment solutionsIncreasing adoption of biometrics for authenticationRising concerns over fraud and identity theftGovernment initiatives promoting biometric payment systemsExpansion of ecommerce and mobile payments |
| Key Market Dynamics |
Rising demand for contactless payments due to COVID-19Increasing adoption of biometric technology in smartphonesGrowing concerns over data security and privacyGovernment initiatives to promote digital paymentsExpansion of biometric payment infrastructure |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Biometric Payment Market is projected to attain a valuation of approximately USD 8.56 billion in 2023.
The Global Biometric Payment Market is anticipated to grow at a CAGR of 16.40% from 2024 to 2032.
North America is expected to capture the largest market share, attributed to the early adoption and advancements in biometric technologies in the region.
Key application areas that are contributing to the expansion of the market include e-commerce, banking and financial services, healthcare, and government sectors.
Leading players in the Global Biometric Payment Market comprise Fingerprint Cards AB, Thales Group, IDEMIA, NEC Corporation, and Synaptics Incorporated.
Factors such as rising concerns about payment security, increasing adoption of mobile payments, and government initiatives to promote digital payments are propelling the market growth.
Challenges that may impede market growth include concerns over data privacy and security, the high cost of implementation, and the need for user education and acceptance.
Opportunities for businesses in the market stem from developing innovative biometric technologies, expanding into emerging markets, and collaborating with financial institutions and payment processors.
The COVID-19 pandemic had a positive impact on the market, accelerating the adoption of contactless payment methods and increasing awareness about payment security.
Trends shaping the market include the integration of artificial intelligence and machine learning, the emergence of multimodal biometrics, and the use of biometrics for identity verification and authentication.
