Biometrics in payment: Breaking down barriers with high value payments

Covershot: Biometrics in payment white paperThis nine-page white paper, packed with examples and figures, makes the case for using biometric authentication built into smart payment cards to reduce fraud, raise or eliminate transaction limits, and increase financial inclusion.

The Smart Payment Association (SPA) has revisited and updated a paper it published in 2013 and looks again at the value of adding biometric sensors or functionality to EMV cards — both to enhance payment security and further extend financial services to previously hard-to-serve populations.

The paper starts with a wrap-up of how the biometric authentication market has developed since then, including figures and projections. The authors then go on to discuss general support for biometrics from banks and financial institutions, and the emergence of biometric sensors built into payment cards.

It then details how biometrics can work with a smart payment card, including a comparison of off-card matching and on-card matching, and the advantages of each approach.

The paper then explores how biometrics can be the key to improving customer service by lifting transaction limits — instituted to limit exposure when cards are misused after they are lost or stolen — and enabling appropriately authenticated cash withdrawals at ATMs. It also makes the point that biometrics can drive financial inclusion by allowing the use of cards in areas where literacy is low.

An examination of the four main objectives to consider when designing an enrolment subsystem follows, before the authors conclude by explaining why they believe the introduction of biometrics sensors on payment cards would represent an important step forward for the finance industry.

Who should read this document

‘Biometrics in Payment’ is recommended reading for executives at banks, financial institutions, card issuers, payment processors, risk and fraud management, government and regulatory bodies and anyone tracking the development of payment security.

‘Biometrics in Payment’ has been produced by the Smart Payment Association and approved by the NFC World editorial team.

How to access this document

This nine-page white paper is available free of charge to NFC World Knowledge Centre members (PDF format, 520kB).

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This item is part of the Mobile Payments Knowledge Centre.