Biometric Payment Card Market Size, Share, Growth, and Industry Analysis, By Type (Sensor, Contact Plate and Other), By Application (Bank, Resident Life and Other), and Regional Insights and Forecast to 2033

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BIOMETRIC PAYMENT CARDMARKET OVERVIEW

The global Biometric Payment Card Market was valued at USD 1 Billion in 2024 and is expected to grow to USD 5 Billion by 2033, with a projected CAGR of 20% during the forecast period 2024 to 2033.

Biometric payment card market is projected at high growth rate owing to escalating requirement for secure and easy way to pay. These cards gain double security with fingerprint authentication technology to reduce fraud risks in contactless non-optimal payment method. The biometric payment card provides a better security alternative over traditional PIN based due to the increasing financial security and also identity theft concerns. The quick and secure authentication is powered by technology advancements in the form of biometric sensors and embedded security chips, that are inducing of these cards to be adopted.

Biometric payment card adoption being supported by biometric sensor & embedded security chip enabled technology as advance in technology is helping financial institutions and payment service providers to expand the roll-out globally for these cards across different countries. The quest for further digitization aided by the increasing penetration of contactless payment, digital banking and fintech innovations drives the market growth. Biometric payment solution adoption is significant in the regions of North America and Europe, however emerging economies are slowly integrating as well. This is the likely market trend for years to come as banks and merchants focus on security and ease in their online transactions.

COVID-19 IMPACT

"Biometric Payment Card Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic has its recent effects on all elements of biometric payment card market. On one hand, the uptake of contactless payments exploded as consumers and businesses demanded more hygiene and less face-to-face interactions. This ignited urgency in biometric cards which provide secure authentication, obviating the need to enter PINs or touch-and-go shared payment terminals. In response, the financial institutions and payment networks pushed biometric card development and trials to market. Meanwhile, pandemics cause supply chain backlogs and in turn delay the roll-out (production, deployment) of biometric payment cards. There are also the semiconductor shortages and logistical issues holding the feet on the room to walk on this technology. But banks put large-scale rollouts on hold in light of some economic uncertainties. Nevertheless, as global economy improves so do the investments in biometrics for payment and verification purposes with focus of financial institutions on payment security and user convenience in a post-pandemic world.

LATEST TREND

"Advancing Security and Convenience to Drive Market Growth"

One of the latest trends in biometric payment card market is ultra-thin fingerprint sensors and embedding of AI (artificial intelligence) algorithms for improved security along with faster authentication speed. Some of the biggest financial institutions are partnering with biometric technology companies, chip-and-pay batteries-free (draw power from the payment terminal) biometric cards, taking away the need to charge from an external source from their routine. Furthermore, market evolution is observed towards multi-modal security using fingerprint recognition along with other behavioral biometrics for a better security layer. This is becoming more popular, especially in high-digital payment adoption countries where banks and card issuers backing on fraud reduction approach. Biometric payment cards are a very ambitious plan for more contactless transactions because the solution embeds not only convenience but also high security in user experience.

BIOMETRIC PAYMENT CARD MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into sensor, contact plate and other

• Sensor – Necessary for fingerprint recognition, required to have reliable means of identification in biometric payment cards. These sensors are becoming better and more energy-efficient with each advancement that comes.

• Contact Plate – responsible for tracking between the biometric payment card and payment terminals so transactions are smooth. Manufacturers are putting a lot of attention to durability and conductivity enhancements.

• Other – Includes additional components such as embedded processors and encryption modules that enhance security and performance. These elements help prevent fraud and improve transaction speed.

By Application

Based on application, the global market can be categorized intobank, resident life and other

• Bank – Adoption of biometric payment cards by financial institutions to improve the security and minimize fraud risks. Biometric authentication is the symbiote of added peace of mind that there has been a complete transaction.

• Resident Life – Biometric payment cards are used in normal everyday transactions like retail shopping to transportation and access control, to make a faster, easier alternative compared with traditional payments.

• Other – Applications on corporate environments, government level and in high security zones where biometric authentication strengthens the identity verification and access control The below examples underscore the versatility of biometric payment cards.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Rising Demand for Secure Payment Solutionsto Boost the Market"

A critical factor that is fueling the biometric payment card market growth is high demand for safe and fraud resistant payment methods. As identity theft and cyber threats continue to increase, financial services along with consumers are demanding higher degree of security services. The extra protection provided by biometric user authentication in fingerprint mechanism and make it extremely hard for unauthorized users to authenticate. Regulatory agencies have also been promoting the use of biometrics in financial transactions, leading towards growth. Biometric technology is being incorporated in next-generation payment cards by the fintech’s which are working in tandem with financial service provider to develop these features. Increased distinction in cybersecurity risks will make consumers to prefer biometric payment cards over traditional card-based transactions as they become more aware of the issue. Seamless authentication methods are also a factor in the increasing acceptance of biometric payment solutions with the rising demand for this from banking and e-commerce.

"Growing Adoption of Contactless Payments to Expand the Market"

Growth of biometric payment card market is driven by exponential expansion of contactless payment adoption because of hygiene and convenience driven boom in blink pay. With consumers being more and more adoption touch-free everything particularly post COVID-19 biometric authentication is an easy alternative to PINs and password. Banks and card issuers are integrating biometric cards- these are costly for the users, but provides better user experience as well as security. With the ongoing advancement of technology that will increase these cards' availability, affordability and ease to be adopted across verticals (banking, retail and transportation). Even so, the use of biometric payment cards with digital wallets & mobile payment systems has further increased their popularity. Further, companies are using biometric authentication to cut down on transactions and reduce fraud loss. When consumer trust in biometric technology grows, it is expected that financial institutions will deploy bigger implementations and in turn scale the market.

Restraining Factor

"High Implementation Costs ""to Potentially Impede Market Growth"

High biometric payment card implementations costs are one of the biggest problems of the growth in the biometric payment card market. The inclusion of fingerprint sensors, secure chips and encryption drive manufacturing costs higher so that them are more expensive than just physical cards. In addition, financial institutions will also bear extra costs to retrofit payment infrastructure and comply the regulatory requirements. Consumer education & awareness will take time and increase operational expenses hampering the adoption at large scale plus this. As a result, financial constraints does not allow small banks and developing economies to 'play in the ring', which is also another limit of market expansion for these technologies.

Opportunity

"Rising Contactless Payment Adoption To Create Opportunity for the Product in the Market"

Foremost, the booming adoption of contactless payments is expected to drive market growth for biometric payment card. As the consumer looks for more convenience and security, biometric cards provide a superior alternative to the costly and insecure traditional PIN based transactions. Banks are already heavily investing in biometrics to increase the user experience while fighting the onslaught of Security threats from cyber criminals. Additionally, the global acceptance of biometric authentication as a payment instrument is bolstered by the regulatory bodies. Faster roll out of biometrics in payments as the growth in digital banking and fintech partnerships continue. Rising consumer awareness with demand for HTTPS & secure, contactless payment methods to be provided. Here too, development in biometric sensor technology and cost reducing will cause these cards to reach millions of people across the markets.

Challenge

"High Production Costs and Integration Complexities Could Be a Potential Challenge for Consumers"

The main bottlenecks of the growth of market for a biometric payment card is a high production and integration costs linked to biometrics. Biometric cards (as opposed to traditional payment cards) necessitate complex fingerprint sensor, secure data storage, and encryption technologies, which makes each card costlier to produce. As a result, financial institutions and card issuers have deep pockets to fuel heavy infrastructure investments in biometric authentication resulting in adoption hold ups. Seamless integration with current payment terminals and global banking networks is still a mammoth issue. One of the other problems relate to deployment of biometric payment solutions, also complicated by the fact that it requires broad merchant acceptance and regulatory compliance. As well worrying about the data privacy and breaches creates a problem making is difficult for better advancement in encryption, fraud prevention etc. Widespread adoption of biometric payment cards is likely to require time and cost-efficient production as well as standardization in global integration leading to delayed market expansion.

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BIOMETRIC PAYMENT CARD MARKET REGIONAL INSIGHTS

• North America

United States biometric payment card market is at the forefront, driven by its well-established financial infrastructure, rapid adoption of contactless payment solutions, and strong regulatory framework. Major financial institutions and card issuers are actively investing in biometric authentication to enhance security and user experience. The increasing shift toward cashless transactions and the presence of leading biometric technology providers further support biometric payment card market share in the region. Additionally, rising concerns over card fraud and identity theft are accelerating the demand for more secure payment solutions, boosting market growth.

• Europe

Biometric payment card market share in Europe is witnessing high growth at significant rate till the forecast period on account of regulatory regime backing, increasing number of FinTech innovations and growing desire for safe and convenient payment option. European Union is promoting strong customer authentication (SCA) as per PSD2 regulations leading to the use of biometric-based cards. Some countries like UK and Germany and France are taking the lead on pilots, in which banks partner with tech firms to put biometrics in day-to-day payments. Lastly, the post-pandemic consumer behavior to contactless payments further pushing the expansion in market.

• Asia

The Asia-Pacific region is witnessing the fastest biometric payment card market expansion accompanied; the digital payment boom, increasingly smartphone penetration and cashless economy-orientated government initiatives. Country-wise, countries such as China, Japan and South Korea are first with their financial institutions starting to test biometric cards for strong transaction security. There is a market expansion driven by the increasing adoption of cutting-edge payment solutions and growing consumer awareness towards biometrics. Finally, with banks partnering up with biometric technology major to deploy at large scale.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Major market players in the biometric payment card market are continuously engaged in research and development to maintain security, optimize use and streamline efficiency in an aggressive manner. Financial institutions are partnering with biometric companies to build fingerprint recognition in contactless transaction systems and other payment functionalities. Vendors are trialing large-scale roll-out of biometric cards with banks and payment service providers through a couple firm pilot programs. Moreover, there are a few industry stakeholders already starting to address energy-efficient fingerprint sensor performance and secure chip integration for quick & secure transaction without compromising on security. Indeed, biometric cards which have become a focus of attention over the years on production cost reduction for wider consumer reach by companies. Fraud prevention is on the rise forcing companies to deploy multi-layered authentication solutions that help fortify security. Globally, mass acceptance of biometric payment cards is enabled by intent to comply with global payment regulatory frameworks and growing strategic partnerships.

List Of Top Biometric Payment Card Companies

• Tongxin Microelectronics (China)
• Fingerprint Cards (Sweden)
• Fudan Microelectronics (China)
• Infineon (Germany)
• Ethernom (United States)
• Smartmatic (United Kingdom)
• Thales (France)
• Visa (United States)
• UbiVelox (South Korea)
• IDEMIA (France)
• IDEX Biometrics (Norway)
• Masria (Egypt)
• Zwipe (Norway)
• TietoEVRY (Finland)
• Mastercard (United States)
• Wisecard (China)
• Linxens (France)
• STMicroelectronics (Switzerland)
• CHS Inc (United States)
• MatchMove (Singapore)
• Smart Technology Services (France)

KEY INDUSTRY DEVELOPMENTS

November 2022: IDEX Biometrics and IDEMIA announced a significant advancement in the biometric payment card industry. A major bank in the United Arab Emirates initiated a full-scale deployment of biometric payment cards powered by IDEX's TrustedBio™ fingerprint sensor technology, marking the first large-scale rollout in the Middle East. This development underscores the growing global adoption of biometric authentication in financial transactions, enhancing security and user convenience.

REPORT COVERAGE

The biometric payment card market report provides a comprehensive analysis of industry trends, growth drivers, challenges, and key opportunities shaping the market. It includes detailed segmentation based on type, application, and region, offering insights into market dynamics and emerging technological advancements. The report highlights the impact of global events such as the COVID-19 pandemic and geopolitical tensions, assessing their influence on market demand and supply chains. Additionally, it covers regulatory frameworks, security concerns, and the competitive landscape, profiling major players and their strategies for innovation and market expansion.

Furthermore, the biometric payment card market report explores regional trends, identifying leading markets and their contribution to overall growth. It provides a thorough examination of technological developments in biometric authentication, such as fingerprint and contactless payment solutions. The report includes market forecasts, investment opportunities, and strategic recommendations for stakeholders, enabling businesses to make informed decisions. With a focus on security enhancements and consumer adoption, the report offers valuable insights into the future trajectory of the biometric payment card industry.