When it comes to the money transaction, security is always the topmost concern. We always take precautions while making the transaction to avoid fraud activities. For example, bank employees ask for our identity and passcode to confirm our identity.
However, emerging technologies are changing the banking sector. They are trying their best to make the banking services simple, easy, and convenient for users. However, many people still have concerns regarding the security aspect as we have witnessed many fraud taking place in online transaction methods.
Biometric authentication technology has appeared as the feasible solution to this issue. In this blog, we would explain what biometric payment technology is and how it transformed the online transaction methods.

What is biometric technology?

Biometric authentication is a security checking way that uses users’ biometric to check the identity of the person who tries to access the bank account through an allowed device. Biometric features are biological and physical characteristic methods of the users compared to the stored database.
If the individual biometric features matches with the user stored database, that will enable the access. If it didn’t match, it will deny the access.
Biometric authentication can also be set-up in the physical environment, for example, it can control the access to gates and doors.
In the last few years, the usage of biometric authenticity has increased and is now available in the user’s device, smartphone, and computer. Private organizations and government authorities use biometric authentication to secure their places.

Types of biometric authentication

Fingerprint Scanners

Most mobile wallet apps in smartphones and other devices have fingerprint biometric authentication. A fingerprint scanner scans the ridges and swirls of a person’s fingerprints. Fingerprint is different of each individual. Even twin siblings have different fingerprints. This makes the fingerprint biometric authentication reliable.
The launched version of the fingerprint scanner can scan the vascular pattern of a person’s fingers. Although, the technology is not a fool-proof technology, and it has its disadvantages. Still, it is one of the most famous technology and is being used by most private firms and businesses.

Facial recognition

As the name itself explains, facial recognition technology depends on the facial face-cuts/face measurement of each individual for accessibility. The face measurement are considered as face prints. If the face prints matches, then it enable the access.
Facial recognition technology is the key feature in all mobile wallet apps. However, the technology cant matches when the view is from a different angle or enable access with similar-looking people.

Voice identification

Voice identification technology uses voices to distinguish between individuals. It creates a voice profile of each individual as a data form and store in the database. The technology mainly focuses on the person’s throat and mouth for the creation of sound quality and shape.
This technology reduces the security concern that can be caused because of voice imitation or with common chances of sickness that changes the voices of an individual.

Eye scanners

Currently, there are only two types of eye scanners available in the market: retina scanners, iris recognition scanners. In a retina scanner, a light is displayed toward the eye which makes blood vessels pattern. These patterns are then scanned and compared with the stored database pattern. It matches then it enables the access.
The process of the iris scanner is also quite similar. The technology scans the colored rings that are present around the pupil.
Both techniques aren’t applicable if the individual is wearing eye glasses or lenses. A photograph can also hoax these techniques.

The story of biometrics in mobile payments

As the number of smartphone sales increases, people start using devices for shopping or banking services, companies then start using biometric technology for online money transfer and payments through ewallet apps.

According to Juniper’s study, by the end of the year 2023, the biometric authentication technology is worth $2 trillion. The study also states that the biometrically-verified mobile transaction will increase by 57% in the year 2023.

Additionally, Juniper also stated that 90% of smartphones can support facial recognition technology. Also, 80% of devices can support voice-identification techniques. According to the study, there will be more than 1.5 billion smartphones that will use software-based biometric technology.

But how did the mobile payments get a push?

After online banking, online shopping is the leading-edge. Apple plays a vital role in online shopping as they launch Apple Pay in 2014. Many people thought that it was too early. However, the idea was great. If people are comfortable making online transactions from their devices then they would also like to buy products online.

Companies have transformed the secure banking experience to a secure shopping experience. Big corporations like Samsung and Google launched Samsung pay and Android Pay respectively.
Samsung integrated the iris scanning in its mobile payment platform. It provides convenience to the customers by making payments by just looking at the phone.
Android pay doesn’t require biometric authentication. However, many android supported this advanced feature.

Big names adopting biometric technology

With the increment in the online fraud cases, the users aren’t satisfied with just passcodes and pins. That’s the reason tech giants enter the biometric authentication business with their products. Biometric single sign-on is a top-notch password management technology. The technology saves the password from unauthorized sources. Tech giants like Microsoft and Intel are encouraging banks to use biometric space for mobile banking.

Multi-factor authentication

Users with only pins and passwords are vulnerable to fraud. This is the top reason why corporations are integrating multiple biometric technology into their application. MFA (multi-factor authentication) is safe and secure, makes it difficult for hackers to access the customer’s account. This unique feature is what users are looking for.

Banks will also start integrating Pins and passwords with biometric authentication techniques in their mobile application.

Secure and simplified online banking

Apple created a huge hype when they launched the smartphone with Fingerprint sensors. Later many companies opt for this technology. Financial service provide also start using this biometric login feature in the banking apps.

Almost every bank has adopted biometric techniques for additional securities. Samsung iris technology is also integrated with financial service providers.

Face ID was launched by Apple. Later on, banks like Singapore’s OCBC and HSBC also start using facial recognition systems.

Not only financial service providers but also other smartphone companies started using the Face ID recognition feature. So I can say that in the next upcoming years, people will log into the bank by just looking at their phone screen.

Future of card payments

Biometric technology provides easy card payment options. Currently, the card payment methods require swiping of the card which is now outdated in many countries.

Chip-enabled cards are highly used in Canada and Europe; however, they consume time and users need to enter the pin in a machine for making a purchase.

There are chip cards that support NFC transactions, in which the users need to tap the card on the machine. This method is quite fast, convenient compared to other payment options. However, it also has some security risks as it doesn’t require a pin or signature.
This is when biometric payment card options get available. This technology supports the tap-and-go feature and integrated with biometric security. The cardholders require to place the finger on the card’s sensor to make a purchase.

Big players like Visa and Mastercard already adopted this technology on a large scale. It means that in the next couple of years, consumers across the globe can make payments through their devices in the most secure, convenient way.


Biometric technology has reduced the security concern of people. With its large number of applications in the banking sector, users enjoy the perks without worrying about security. Additionally, biometric technology keeps additional security-related solutions. Only time will tell you how biometric technology makes digital payment easier for us.

Author's Bio: 

Rahul Mathur is the founder & Managing Director of Arka Softwares. Graduated from Harvard Business School, he is a driven leader and technology enthusiast who takes pleasure in helping modern startups and enterprises to grow with the help of future-ready IT solutions such as, next-gen mobile apps, web and marketing solutions, IoT, full stack development, Cloud, ewallet app development solutions, etc.